How to organize your monthly bills

In a nutshell

Organizing your monthly bills starts with a simple list: the bill, the amount and the day it is due. With that list, you know how much of your paycheck is already taken before you spend. Moving due dates close to the day money comes in helps you avoid late payments, fines and interest. Marking each bill as paid shows what is still left.

What goes on the list

Fixed bills arrive every month with a similar amount. Examples: rent, electricity, water, internet, phone, health plan, school. Some change a little, like electricity. In that case, write down the average of the last few months.

It also helps to write down money you will receive. It can be rent from a spare room, a sale, side work or money someone will pay you back. Knowing the day that money arrives helps you decide when to pay each bill.

Example

Ana and Carlos earn R$ 4,000 together (R$ is the Brazilian real). Their pay arrives on the 5th. Their fixed bills are:

• Rent: R$ 1,200, due on the 10th
• Electricity: R$ 150, due on the 15th
• Water: R$ 80, due on the 20th
• Internet: R$ 100, due on the 1st
• Health plan: R$ 400, due on the 10th

The fixed bills add up to R$ 1,200 + R$ 150 + R$ 80 + R$ 100 + R$ 400 = R$ 1,930. That leaves R$ 4,000 − R$ 1,930 = R$ 2,070 for groceries, transportation and the rest of the month.

The problem was the internet bill. It was due on the 1st, four days before payday. Every month money was short and the bill was late. Carlos called the company and asked to move the due date to the 10th. Now every bill is due between the 10th and the 20th, after the paycheck arrives.

Ana also sells cakes and gets about R$ 300 from a client on the 20th. She records it as money to receive. That way she knows the water bill, due the same day, can come out of that money.

Step by step

1. Take last month's bills and bank statement and list every fixed bill, with amount and due date.
2. Add everything up and subtract it from your income. What is left is what you have for other spending this month.
3. Check which bills are due before payday. Ask the company to change the due date. For public services run by a concessionaire, such as electricity and, in many cities, water, Brazilian law requires the company to offer at least six due dates for you to choose from. For other bills, it depends on the company.
4. In Meu Gasto, open Bills, tab To pay, and add each bill with amount and due date. For fixed bills, choose to repeat every month. In Settings, choose how many days in advance you want to be reminded. The Calendar shows what is due each day.
5. In the To receive tab, also add money that will come in, with the day it should arrive.
6. As soon as you pay a bill, mark it as paid in the app. Keep the receipt.
7. At the end of the month, check whether any bill changed and update the list.

Common mistakes

• Relying on memory. It is easy to forget a bill in some month. Fix it with a written list and a reminder before the due date.
• Due dates scattered across the month. It gets hard to know how much money is already taken. Ask to change dates and group bills after payday.
• Forgetting yearly bills. Property tax, car tax and school supplies also arrive. Divide the amount by 12 and set a little aside each month, or add the bill well in advance.
• Not marking bills as paid. You may pay twice, or think you paid when you did not. Mark it right away, with the receipt in hand.