A bills list feels like the simplest possible piece of organizing, and it usually fails at the same point: it lists what arrives every month and forgets everything else. The bills that surprise you are almost never the monthly ones.
A useful list has a small number of columns and includes the quarterly and annual bills from the start. It takes about half an hour to build the first time, and a few minutes a month to keep.
The columns
Name
- What to write
- Rent, electric, car insurance
- Why it matters
- You will scan for it by name
Amount
- What to write
- A number, or a low and a high
- Why it matters
- Some bills move; be honest about it
Due day
- What to write
- The day of the month, or a specific date
- Why it matters
- A bill with no date cannot be planned around
How often
- What to write
- Monthly, quarterly, annual
- Why it matters
- Tells you what a month really costs
Essential
- What to write
- Yes or no
- Why it matters
- What has to be paid before anything else
Shared
- What to write
- Who pays part, and what share
- Why it matters
- Stops you paying for someone else's half
| Column | What to write | Why it matters |
|---|---|---|
| Name | Rent, electric, car insurance | You will scan for it by name |
| Amount | A number, or a low and a high | Some bills move; be honest about it |
| Due day | The day of the month, or a specific date | A bill with no date cannot be planned around |
| How often | Monthly, quarterly, annual | Tells you what a month really costs |
| Essential | Yes or no | What has to be paid before anything else |
| Shared | Who pays part, and what share | Stops you paying for someone else's half |
Turn every bill into a monthly amount
To see what a normal month costs, convert every bill to a monthly equivalent. A monthly bill is itself. A quarterly bill divided by three. An annual bill divided by twelve.
For example, car insurance of $612 every three months is $204 a month. A $96 annual renewal is $8 a month. Add those to the monthly bills and you have a more honest figure for what leaves in a month than the bills you can see in your banking app.
Build it in four passes
4 things to do
Ticks are for this visit only. Nothing here is saved anywhere.
Bills that move around
Electric, water and phone bills change. Write a low and a high, and plan toward the high. There is a longer method in how to budget for bills that change every month.
For the non-monthly ones, a small monthly amount set aside for each is the quieter alternative to scrambling when they arrive. That idea has its own guide: sinking funds.