In prior posts we began covering steps to Mind the Finances.
In this post we’ll focus on paying our expenses on-time, every time…
Why is this so important? This is CRUCIALLY important, because not paying our expenses on time EVERY time results in:
- Increased costs in the form of late fees and/or interest payments
- A black mark on our financial reputation (a.k.a. credit score). This then places a limiting factor on our life which can manifest itself in many forms, including:
- Paying higher interest rates on any line of credit that we attempt to establish, or worse, we may be outright refused!
- We may have a more difficult time renting an apartment (landlords want their money on time every time).
- We may not get that job. Many employers now check our credit before making a hiring decision.
So, missing ANY payment is a reason to think: my hair is on fire!
There are simple steps we can take to ensure we don’t EVER miss a payment, including:
- When we receive a bill in the mail (email or snail mail) handle it IMMEDIATELY. Don’t let it pile up in a stack of papers or in an out-of-control email inbox.
- Set it and forget it – For many of the services we receive we can ask the provider to automatically deduct the payment from our account each cycle. And, for the more disciplined (who like free money) we can have our service providers hit our credit card (which offers cash back) and we don’t need to worry about the balance in the account – because we pay it off EVERY month!
- Manage our payments as rigorously (even more-so) as we manage our tasks and appointments. As covered in a prior post, we can setup payment reminders for ALL our financial obligations in Mint.com. Then, as we periodically check the status of our accounts we are reminded of upcoming payments and can ensure the required funding is available in the necessary account.
Bottom-line: To eliminate noise in our mind and the resulting stress associated with the handling of our expenses, we only need to take a few very simple measures to manage the process. These habits are absolutely foundational to achieve Mind Like Water in our quest to create a life of effortless abundance.
More to come!