Dollars and Sense: A Blueprint for Prioritizing Bills

In our current economic climate when a majority of Americans are living paycheck-to-paycheck, smart spending is a challenge. You may have to make hard financial decisions about which bills you should pay and which ones you delay. Although everyone’s financial situation is unique, here are suggestions on how to pay bills—specifically which payments to prioritize.

Ensuring you and your household have enough to eat is a fundamental necessity. Allocate a portion of your budget to cover grocery expenses and utilize any store memberships or coupons that can shave a percentage off your totals.

If you want to learn money management best practices when it comes to bill payment, check out the Aligning Priorities Online CourseAligning Priorities Online Course. This free course can help you prioritize your expenses based on what you value and create a short-term action plan.

The Aligning Priorities Course is valuable for people who:

• Have experienced a sudden change, such as loss of income
• Desire more clarity on their short-term financial plan
• Feel motivated to take action toward a goal, but aren’t quite sure where to start

Mortgage or rent payments should be the top priority to ensure you have a secure place to live. A home financed with a mortgage is a secured debt, and the lender expects timely and consistent payments. If you own your home, real estate taxes and insurance must be paid (these expenses may be included in the monthly mortgage payment). Any condo fees or mobile home lot payments also should be considered a high priority.

If you need debt plan help or additional resources as you organize your spending, check out these useful tools:

• Budgeting WorksheetBudgeting Worksheet
• CalculatorsCalculators
• Housing ServicesHousing Services

Essential utilities such as electricity, water, and heating are crucial for your well-being and should be paid to maintain a comfortable living environment. Consider other expenses in this category such as house phones, Internet and cable TV. Can you downgrade your current plans or even suspend service temporarily?