While no one is really looking forward to paying their bills monthly, let alone often, experts agree that scheduling weekly time for bills is a smarter way to go. Reviewing and paying bills on a weekly basis can save you headaches, hassle, and keep you ahead of your financial goals.
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Here are 10 reasons why it’s important to schedule time for bills each week.
Reduces your stress
Reviewing your bills weekly means you’re more likely to pay them on time, which can reduce stress, according to Nick Hodge, founder of Daily profit cycle.
âMaking your payments on time is essential if you want to live a stress-free life,â he says. “When you delay paying your expenses, the likelihood of forgetting to do so increases. It’s also possible that the money has already been spent elsewhere. The bills are piling up and you don’t have the money for the Fortunately, this is a cause of stress that can be avoided entirely.
Reviewing bills weekly can help you avoid debt, says financial advisor Winnie Sun, managing partner of Sun Group Wealth Partners.
“If your expenses exceed your monthly allowance, it gives you a chance to step aside and take a financial break for the following week of the month.”
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Establishes good financial habits
A weekly review also lets you pay close attention to your earnings, says Sun. âIt’s also a good habit to know when you’re paid. Set up the same alerts so you can see that paycheck being deposited. It’s also great for your financial sanity, knowing that your hard work is rewarded financially and can motivate you to take on an additional project or even ask for a raise.
Helps detect fraud
With today’s heightened risks of cyberattacks and fraud, Sun says it’s more important than ever to keep track of where you’re coming in and going out when it comes to your money. “In most cases, the sooner you are alerted to fraud, the sooner you can contact your financial adviser or institution to have it corrected.”
Prioritize financial goals
When you know how much you’re spending, you can also know how much you need to save for those important long-term goals, Sun says. “When you’re not spending, consider adding to a Roth IRA or even making an additional contribution into your business 401(k).”
Maintains a healthy credit rating
Reviewing your bills helps you stay on top of paying them on time, and it’s important for your credit score, says Paul LaPiana, CFP, chief product officer at MassMutual.
âIn a recent MassMutual study of young adults, only half â 52% â knew that their on-time payment history can have one of the biggest impacts on their credit score. This is also important because a score Poor credit can lead to difficulty getting a loan or high interest rates.
Prepare for the unexpected
Bills should be reviewed weekly with other finances to prepare for the unexpected and make other adjustments, says Randy Joneswealth manager for Financial Growth Partners.
âI often encourage my clients to prepare for the unexpected by creating a savings plan. When a person looks at their bills each week as well as their finances, they can really see where their money is going on a daily basis. A person may realize that they didn’t have to spend as much money as they did after reviewing their finances at the end of the week.
See: The advantages and disadvantages of automatic bill payment
Strengthens financial stability
“Paying bills may not be the most exciting way to spend your time, but it’s an important part of maintaining financial stability,” says Brian Meiggs, entrepreneur and founder of My Millennial Guide, a personal finance site. âWhen you make it a priority, you’re less likely to miss payments or incur late fees. You’ll also have a better idea of ââwhere your money is going each month. Paying bills on time is also important for maintaining a good credit score, which can save you money in the long run.
Meiggs recommends setting aside 30 minutes each week to review your bills and make payments, at the beginning or end of the week. “Once you get into the habit of paying your bills regularly, it will become second nature and you won’t feel like a chore anymore.”
Helps you invest
Reviewing and paying bills on a weekly basis establishes good financial habits and âmakes room for future and future investments,â says financial and tax advisor Adam Ng, founder and CEO of Of confidence.
“If you have automatic payment set up at all the places you owe money, not only will you never miss payments, but you will also know exactly how much and where your finances are going. This gives you more time, space and knowledge to plan and implement any future investment or expenditure.â
Reviews your spending habits
“Reviewing your bills on a weekly basis can often be a sobering experience, especially if your spending habits aren’t well aligned with your earning potential…it discourages complacency,” says personal finance expert Mila Garcia, co-founder of .
âThis means you can better spot any potential fee increases, as well as deal with any unnecessary and excessive spending that you may have initially been hesitant to get rid of. And as a bonus, paying your bills on a weekly basis is a surefire way to avoid potential late fees and impacts on your credit score, which ultimately goes a long way to improving your financial security.
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