8 Ways to Organize Your Finances

8 Ways to Organize Your Finances

There is a myriad of ways in which you can establish fantastic financial health in your life. But remember, all of these ways have a common ingredient: self-discipline. It will help you cater for your bills on time and meet your savings goals.

The following life-hacks will help you simplify money and keep your financial information tidy and neat.

Financial Software Come in Handy

Personal finance software is designed to help you master the basics, save money, discover various ways of meeting long-term goals, and also help you become efficient at managing your finances. The software plays different roles. Some help in tracking expenses and budgeting while others help in the investment portfolio. Choosing personal financial software depends on your financial needs and of course, your budget. For instance, Quicken will help you in budget creation, investment coaching, and savings goals. Personal Capital is another excellent software that allows you to manage your money in a single platform.

With the help of financial software, you will manage to track down your expenses and manage your savings. This way, you will attain your saving goals.

Always Revise Your Budget

Lack of organization will hurt your finances. That’s why you should always have a budget. But that doesn’t mean your budget plan should be the same from January to December. Your bills might change on a weekly or monthly basis. Ensure you revise the bills as they come and adjust where necessary. For instance, near Christmas, the bills tend to be higher than other months. Also, your electricity bills might shoot higher during the winter months.

Stay Organized

Going frugal is not only about having savings accounts, but also keeping track of your bills. Today, most bills arrive electronically. Ensure you have a mail that is purposed for bills. If you usually write checks, you can have a copy of the written checks or write it down in a personal ledger.

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Keep a clean record of all bills, financial statements, and receipts in a file folder or a file cabinet. If you don’t want to file your bills manually, you can have them scanned and stored in your computer- in a protected folder. If you have coupons, keep them separately in a coupon organizer. You can get a customized organizer where you can keep your coupons in handy.

Keep a Clean Record of Your Income and Expenses

Keep a list of any income you receive, like stocks & bonds, salary, dividends, or income from side jobs. Then, create another list of your monthly expenses such as rent, electricity bills, transportation, fees, etc. At the end of this, you will find out how much money you’re left with to save. You will also be in a position to make adjustments to help you save more. For example, you can decide to carry homemade food to work and save $5 daily. You can also live near your workplace and save on transportation cost.

Pay Bills Instantly

Ensure you pay your bills as soon as you receive them. Most people make a mistake of piling up bills, which make them end up in debt or having a bank overdraft. However, be cautious of bills that come electronically and in paper. If you have money in your account, pay it as soon as you can. If not, when you get cash, first sort out the bills before anything else.

Create a Checklist of Your Bills

Have a list of the total bills you’re expecting either weekly or monthly. For example, you need to foot your grocery bills, transportation costs, fuel, rent, water, and electricity bills. With each bill, write down the approximate cost. Compare these bills with your income. If you find that your income would not be enough to foot these bills, you may look for a side job to supplement your income. Alternatively, you may work on ways on how to reduce the costs. For grocery, shop in wholesale from a grocery store. This way, you will save a few bucks.

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Have Two Bank Accounts

Ensure you have a savings account and an account for paying the bills. It will prevent you from spending the money saved for rent or other expenses.

Revise, Review, and Repeat

Revise your budget and make adjustments where necessary. Moreso, stay up to date with your financial reports. It will help you know where you stand financially. Review your saving goals and check if you’re still on track. Do this after every two weeks, or better yet, monthly.

Final Note

Being financially organized can help you reach a savings goal, have fewer debts, and avoid missed bill payments. Follow these tips to live a stress-free life.

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