At the end of last year, Peanut and I decided to do something we've never done before: automate our finances. We signed up for autopay on every bill that allowed it (which was pretty much everything besides credit cards), figuring that it would be a lot easier than sitting down and paying everything once a month. It was taking a long time to reconcile our spreadsheet and pay all the bills every month and we just felt like we could get more organized and streamlined by taking advantage of automatic payments.
What a disaster.
We've not been doing a great job of staying on top of it, and this week we narrowly avoided overdrafting our mortgage payment and Roth IRA contribution. Ugh. We caught it and luckily my paycheck hit just in time to save us (in other words, we realized it but couldn't have done anything about it if I hadn't been getting paid when I was). Keeping up with the variable nature of our utility bills and remembering to enter those amounts into the spreadsheet when they were automatically paid was way more complicated than spending an hour a month doing it manually.
So we're taking everything off autopay and going back to doing it manually.
Our system is SUPPOSED to work like this:
We have a master spreadsheet that tracks every account balance as well as the cash on our persons (we round up to the nearest dollar). When we spend any money, we're supposed to input and categorize the data into the spreadsheet. Once a month, we reconcile everything and pay all the bills. We know our net worth on a monthly basis and can see trends over time (we've used some version of this spreadsheet for almost eight years now). It gets a little unwieldy but it works if we enter our expenditures regularly and reconcile monthly.
We've not been great about entering our receipts, though, and knowing that the bills were getting paid gave us no impetus to go in and reconcile anything, so it all fell apart. Going back to manual bill pay will fix part of that problem, and we're going to work harder at entering our expenditures more frequently to make the reconciling side of things easier too.
We've been doing this for so long that you'd think we'd have the discipline to manage it with autopay, but apparently not. We both feel more comfortable being this involved with and aware of our financial picture, so I guess we'll consider bill-paying to be a date night activity and kill two birds with one stone. :-)