Budget- Part 3

It has taken a while for me to get back to my blog because we have been enjoying some random nice weather. I am going to explain my filing system for my bills. This has been a really important part of paying off our debt because it helps me stay organized. I am a very visual and tactile person and I like to have things in my hand with concrete information. At the first pay check of every month I sit down with my calendar and start to plan my next month. I write down the due dates of all of the next months bills and figure out which bills will be due on which pay day.
Then, when I get a bill in the mail I immediately write it in my weekly planner under the day that it is to be paid. This is the payday that is closest before it is due. I also try to keep a minimal amount of my bills direct withdrawal because I like to have that paper bill within reach so I can see it at any time. I know some people like to do everything electronically but I am just not one of those people.
After it is recorded I decide whether it will be paid online or by check. If it is paid by check I immediately write out the check, put the bill in the envelope and mark the payday date on the bottom right corner of the envelop. I also record the number of the check in my weekly planner.
If it is to be paid online I put them inside my weekly planner to be paid on payday. This is because some bill payers don't allow you to pre-select a specific day so I just do them all at the same time.
Once a bill is paid (whether online or by check) I write some specific information on each bill. I start by recording the amount I paid and the date it is paid. Underneath that information I write the check number or online confirmation number. This has come in handy a few times when places have said I didn't pay on time and I could tell them I received the confirmation number on a specific date and usually they reverse the late fee.
Also, if the due date is on payday I always write out a check and mail out all bills with checks on the Wednesday prior to payday. That way I am sure that they received the payment on time.
After a bill is paid (by check or online) and the above information is recorded on the bill I place it in a file folder. Initially, I had a file folder for each month and put all of the bills in there. Over time I got too many bills and it became too chaotic and hard to find things I needed. Now, I have a file folder for each bill (example: water, electric, hospital, pediatrician, etc.). Although those are just general titles I use the specific company name and follow it by the year. I keep all of these records for three years and then shred them. Keeping some of this information has also been helpful for taxes because you can claim the cost of medical expenses so I keep those sorted by provider and have a separate folder for prescriptions. Then when tax season comes I can just pull out those folders and take them to the tax preparer.
In the final section of this series I will discuss my final steps to keeping track of our budget so that we can successfully pay off our debt.