Pay on time

There are several ways to help you avoid forgetting to pay a bill on time.

* Arrange a direct debit with your bank for all your important bills and ensure sufficient money is kept in the account to pay them; many companies will send or email you a copy of a bill automatically to remind you when payment falls due, or for your home-office files.

* As soon as you receive a bill in the letterbox, put it in a file marked ‘bills to be paid’ and note the date in your diary when the bill needs to be paid by. After you’ve paid a bill, file it in the appropriate place.

* Make payments over the Internet using your bank’s Internet banking service, and set up automatic debits wherever possible (to make monthly payments on your home loan or a personal loan, for instance) to make the process fast and easy.

* Electronic Funds Transfer (EFT), or telephone banking services such as BPAY (in Australia), are also great timesaving methods of paying regular incoming bills. The other advantage to using these services is that they are available whenever you need them, 24 hours a day, 7 days a week.

* If you still pay bills by cheque, set aside a time each week for writing them in one go, then post them immediately.

* You can also arrange direct debit for most bill payments by supplying credit card details to the company billing you for services. Ask if this can be set up for you and simply file bills for your records.

Keeping electronic files

* Instead of photocopying important documents, scan them and store the digital files on your computer, only printing them out when it’s absolutely necessary.

* Take digital photos or videos of all your most valuable possessions and keep the sales receipts for all major purchases. In the case of theft or accidental damage, this will make it easier for the insurance company to reimburse you.

* An easy way to store digital files is on a CD, DVD or a USB Flash Drive, or ThumbDrive or memory stick (they are tiny portable storage devices that plug into the USB port of your computer, and can store or back up most digital data, from photos and music to documents and presentations). File the CDs and DVDs along with corresponding receipts.

* Organise your digital files as you would your paper files, because searching your hard drive to find them can take as much time as sorting through a filing cabinet. Use separate folders for each set of documents.