It is fantastic to know that if you organize your finances, you won’t be as nervous about your money.
In almost every situation, if you fail to plan, you plan to fail. When it comes to scarce resources like money, it is crucially important that you organize. To organize your finances to get all your current financial information into one place. Locate the following:
– Bank statements (checking, savings, money market etc.)
– Receipts for major purchases
– Pay stubs and income statements (investments, stocks and similar items)
– Credit card bills and receipts
– Utility bills
– Mortgage Statements
– Loan Statements
– Tax information (federal, state and local)
– Check book
– List of credit card numbers, expiration dates and CCV codes
– Any other financial information you may have
Step One – Initial gather and organize
Once all this information has been gathered and is in front of you, put it in piles based on category. Next, organize everything in date order with the most recent information on top of the file. Next use paper clips, binder clips or file folders to keep everything together. Organize the piles of items by putting each section in alphabetical order to make it easier for you to file new items as they are received.
Step Two – Create procedures for keeping organized
It is important to take the time to get and keep information neat and organized. However, the initial clean up and organization is not the end of the matter. You must take time on a regular basis, at least once per week to organize and file financial information. If time does not yet allow you to file and organize financial information immediately, when it is received, create an inbox where you keep the information together until it is filed away properly.
Step Three – Pay attention to your budget
Pay attention to your budget as you review, file and organize and handle your financial information. By looking at your budget you will get a sense of whether or not you are sticking to your plans for handling your income. Write down how much you spend on each item and compare it to your budget plan. If you are spending too much, stop or adjust your budget to match reality. By paying attention as you go along, you will be more aware of your cash flow and less likely to end up with more expenses than income to cover the expenses.
Step Four – Schedule payments
By taking control of your financial information and taking time to file and organize, it will make it possible for you to make better and more informed financial decisions. As bills come in, put their due dates on your calendar along with a note to be sure payments due are received by your creditors at least three days in advance. Be sure to keep track of the money you spend by writing it in your check book and comparing it to your budget plan.
If you take time to organize your finances in this matter you will have prepared yourself to make better financial decisions and to be aware of what your true financial condition is.
In conclusion, it is fantastic to know that if you organize your finances, you won’t be so nervous about your money. So, the question for you this fantastic day is, what are you going to do to take control of your money?