Bill Payment Organizer

How to Pay Bills and Stay a Stay at Home Mom

A bill payment organizer can be a vital tool for stay at home moms when planning a family budget. Learning how to pay bills using a freedom account can help a family plan for future events, and come out ahead financially.

One of the big frustrations for stay at home moms is when a big unexpected problem occurs - one that costs a lot of money. It's stressful trying to figure out how you'll deal with this big expense and still pay the rest of your regular monthly bills.

This is where a good bill payment organizer can definitely come in handy. After all, one of the main reasons families get into credit trouble today is because they aren't able to pay for emergency expenditures that crop up in life.

Planning a family budget and then saving up for these emergencies can provide a way that you can avoid having to go into debt when life knocks you sideways financially. One way that you can do this is by creating a freedom account.

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What is a Freedom Account?

A freedom account can act as your bill payment organizer, but what exactly is a freedom account?

The term "freedom account" was coined by Mary Hunt, a finance and debt expert.

Think of this type of account as a holding bin for your money. Every month you put a small amount into the account. You do this because you're thinking of all the big expenses that can crop up unexpectedly in the future.

Even though this account may not be able to provide for an entire emergency bill, usually it can at least help to alleviate the strain financially that occurs. This can help you to avoid having to pull out the credit card, putting yourself into debt.

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How Does a Freedom Account Work?

Wondering how this freedom account can work as a bill payment organizer? Well, first you're going to work on planning a family budget. You need to decide how much money you can afford to put into this freedom account each month. Then, once you have the account in place, you'll want to divide it into different sub accounts that you keep track of yourself.

For example, you may put a certain amount into the account for medical expenses, some towards Christmas expenses, some towards auto repairs, and others towards other emergency financial expenditures that may arise. Then when it's time to spend on one of these items, you can use the money you have designated for the expense.

Here are some sample categories:

Auto Insurance Home/Renters Insurance Auto Repairs Home Maintenance License Fees

Gifts/Holidays Medical Expenses Insurance Deductibles Vacations Pet Vet

You'll find that many things can be categorized in a freedom account. You'll probably think of a few things right away. If you're having a tough time thinking of irregular and big ticket expenses, look back through your finances to see what ones have hit you in the past.

Once you decide on the categories for your account, then decide on an amount you can set aside monthly for each category. This should be based upon the average amount these bills will cost yearly, divided by 12 months.

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Why Use a Bill Payment Organizer?

While the freedom account may be a whole new concept for you, it is definitely worth giving a try if you're working on planning a family budget to get your finances back in control. Here are just a few of the reasons that families should be using these accounts today.

To Better Organize Bill Paying
First, freedom accounts can be a great bill payment organizer. You can organize the accounts with money deposited for particular bills so you know that money will be there each month when the bills come due. They are great for organizing bills that occur less frequently as well, such as bills that are due quarterly.

Save for Unexpected Expenditures
Freedom accounts can also help you to save for unexpected expenditures. You never know when the car will break down or you'll have medical bills to pay. These accounts help you save up for these unexpected problems that so often happen in life.

Reduce Financial Stress
Financial stress can be greatly reduced when you have a freedom account, another of the main reasons to have one. Instead of worrying about where you'll get the money to deal with financial difficulties, you know you have money saved up that can help you deal with unexpected situations.

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Setting Up an Account

If you want to have your own freedom account as a bill payment organizer, you'll need to know how to set up your own account. Several different methods can be used to do this.

First, you can simply open up another checking account under your name at the bank. Another option is to have a savings account that is linked to your regular checking account.

The online bank, HSBC, can help you out as well. You can open multiple accounts with HSBC and it won't cost you anything. This allows you to have a separate account for each category, which makes this a better bill payment organizer for you. Check out HSBC to find out more about how you can set up these accounts.

To help get you started, here is a downloadable form you can use to get organized. Simply print one page for each of your categories and put them in a binder.

Free Download Bill Payment Organizer

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Related Pages

Why Budget?

Sample Personal Budget

The Envelope Budgeting System

Organize Monthly Bills

What to Include in Your Budget

Mvelopes Budget System

YNAB- You Need a Budget Tool

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