Pay as you go

When it comes to credit cards, I like to know I'm at least getting a little reward for my completely undisciplined spending. That's why I have two airline affinity cards I use to help me rack up the miles.

Funny thing about credit card companies - they expect you to pay them. I know, right?

Sometimes, as any freelancer will tell you, the bills get there before the checks do. The cash flow isn't always as prompt as you'd like it to be. It's not that it's not there, it's just not there right now.

A few months ago, I managed to run up one of my cards to a healthy sum. It fact, at that point in time, it was a healthier sum than I had coming in.

Eventually I paid it off, but I'm not a guy who likes to have debt. I'm not comfortable with it, never have been. I used to pay my phone and electric bills a year in advance just so I wouldn't have to think about them (I also used to spend my rent money at the track, but I don't do that anymore either - long story).

Now before you say it, don't say it. I know I could've invested that money instead of letting the phone and power company earn interest on it. But to me, my peace of mind and retaining the ability to breathe knowing those bills were paid was a good investment.

Anyway, as a result of having run up that card - little suckers just sneak up on you don't they? - I now do something I've never done. I pay as I go.

At the end of every day, I go on the credit card site and see how much I've charged. Then I transfer money from my checking account to cover the daily balance. With a keystroke, I'm current on the card.

It also helps because knowing how much is in my checking keeps a tighter rein on my spending since I know I'll have to cover it the next night. At least that's the theory.

But with 467,000 frequent flyer miles, I'm not sure how well it's working.

The un-giving tree

Like many of you, I have a money tree in my backyard. Frankly, it makes things a lot easier. When the pile of bills gets higher than Amanda Bynes at Chateau Marmont, I can simply run out to the backyard, pick a few of the ripe Benjamins and take care of business.

Oh, huh, what...sorry, I'm always groggy when I wake up. I was dreaming about my money tree again. The problem is while I wish I had one, people who want money from me seem to think I actually do have one.

Like so much of life, timing is everything when it comes to the bills. In our house we have a system that looks great on paper, but clearly has its drawbacks.

There's a tray near the front door for the mail. All the mail for all four of us go into this tray. Then, when I get around to it, I separate my mail - which includes the bills - from everyone else's and put them in another tray in the dining room.

Here's the tricky part: sometimes (and by sometimes I mean always) bills get mixed in with other peoples mail in the first tray, and I don't discover them until after their due date. That due date also creeps up on the bills I've put in the second tray.

I really need to check that tray more often.

What usually happens is I forget about the bills, then start thinking, "Hey, look at all this money in my checking account." That thought right there? That's my cue to look at the bills.

The past due bills.

So I break out the checkbook and start paying the piper. But because I thought I had the money, I was spending the money. It runs out way before the bills do (due).

This is where the money tree comes in handy. Or would if I really had one.

What I need to do is provide a better role model for my children when it comes to managing money. I simply have to realize there's no money tree, and start organizing my bills in a more adult and responsible way to make sure there's enough money to get them all paid on time.

Right after I buy my lottery tickets.