fbpx

Why It’s A Smart Idea To Have A Process For Monitoring Your Bills?

Why It’s A Smart Idea To Have A Process For Monitoring Your Bills

 

Bills …we all have them, but do you have a process in place to ensure that your bills are not diverting more money away from wealth-building activities than they should?

As more and more of us switch our banking and the way we manage our subscriptions and utilities online, no longer do we receive such a visual reminder as that paper statement arriving through our postbox reminding us of our renewal costs, or increases in charges.

And this means that it’s a smart thing to be checking in on your outgoings for all bills that you have at least once a year – as the chances are that with some small changes you can ensure you’re paying the lowest rates, and that means more money that you can reinvest into building your wealth.

In this blog post I’m going to focus on ‘Bills’ – the third component of D.E.B.I.T.S, which is the Foundation stage of what we teach at WealthBuilders; finding extra money in your life that you simply did not realise was there – no matter what stage of your wealth-building journey you are at.

If you’re not familiar with (or simply need a refresher) on the 6 components which form the Foundation and spell out D.E.B.I.T.S then head over and watch this video now.

Use some of the comparison websites to easily find out if you could be paying lower rates for utilities and other bills

Review Your Bills Annually

Whilst reviewing your bills probably isn’t top of your list when it comes to focusing on activities that can help build your wealth, look at it as a step by step process that is assisting you to reach your Financial Security Figure [Step 2 of the Levels of Wealth].

Just as I am sure you seek to earn as much as possible from each of the assets that you earn, why not also aim hard to drive down your costs at the same time, and this has become so much easier nowadays thanks to the huge range of money saving and money comparison websites …moneysavingexpert.com being just one that is widely recognised in the UK.

At the same time as reviewing your bills, you might also find it a useful exercise to check through your bank statements from the last 3 months to ensure there are no unwanted subscriptions or unauthorised charges being taken without your knowing. This exercise in itself can often help you to find extra savings which would otherwise have continued to go unnoticed.

In fact, it is extremely important that you know exactly what your monthly minimum cost of living equates to because this number will be required to calculate level 2 on then 5 Levels of Wealth, which is your Financial Security level.

If you haven’t yet worked out your Financial Security Level, or would like a recap on the 5 Levels Of Wealth you can watch this video where I explain the process in more detail.

Re-invest The Money Saved Back Into Your Education

If you can find a way to save £500 per year on your Gas & Electricity by switching to a different provider, then what can that £500 be put towards instead?

One suggestion might be to put it back into some education [the second component of D.E.B.I.T.S], which essentially means you’re now getting your education for free. Instead of working harder, you’re working smarter to achieve the same outcome.

When you apply all 6 components of D.E.B.I.T.S and discover savings of up to a few hundred pounds that you didn’t realise were already there, and then re-invest that into your education …you’re already one fifth of the way to turning another wheel, and that means more recurring income into your life and a step closer to reaching the next level of wealth you wish to achieve.

Let’s be clear. You cannot save your way to wealth. The idea is not to penny-pinch, but to be efficient.

Kevin Whelan

Founder, WealthBuilders