Tips to Organize Your Finances
When it comes to our financial lives, it can be very easy to feel overwhelmed by the wide variety of the amount of various information that you need to keep track of. This feeling of being overwhelmed can be dangerous, because it defers us from taking further action.This inactivity can make our financial situation even worse, and can end up trapping us in a detrimental amount of debt.
Instead of this path, it’s much better for everyone if our finances are kept in good shape, and the best way to do this is to get organized. Oftentimes, though, this is much easier said than done. Here are some tips on how to organize your finances…
Have specific times to check your budget
The trouble that most people have with their finances is that they don’t keep a good track of how they are doing. The reason for this is that there isn’t a lot of effort into keeping track of a budget after it has been made.
Set aside several times in the month where you will pull out your budget and see how it has measured up to your spending patterns. This will build accountability for yourself and your spending. Ideally, do this every two weeks, if not more. This also lets you be more lenient or tighter with your budget, if you need to be, so that you can accomplish your budget goals by the end of the month.
Keep bills together, and pay them immediately
Whether you pay your bills digitally, or still get them in the mail, it’s important to find a way to keep all of your bills in the same place. If you pay them digitally, make sure that your email reminders all go to the same folder that is designated, specifically, for bills.
Or have a special drawer for any bills that you get in the mail. This will help prevent you from forgetting any bills that you need to pay. However, even if you have a special place, it’s best that your bills don’t stay there.
Focus on paying your bills immediately, as soon as you get them, so that they don’t build up by the end of the month.
Make a list of your expenses (especially bills)
O
ne reason that people get messed up with their finances, and begin to fall behind on their payments, is that they just don’t keep track of what they are spending money on.
It is nearly impossible to reign in your spending and keep your head above financial water if you don’t even know how deep the water goes.
Because of this, make a checklist of all of your bills, every single month. Even if you have bills that are withdrawn, automatically, make sure that you are aware of when they come out on your checklist, so that you can make sure that you don’t get blindsided by any bad timing.
Use multiple accounts
If you keep all of your money in the same place, it can be easy to spend money that was supposed to go to something else. This makes for a really messy way to organize your finances.
Instead, get multiple bank accounts for different purposes, so that you have a normal spending account that is separated from one that is strictly for the purpose of paying bills.
Create a list for tax deductions
If you get into a good habit of keeping track of your finances, you will not only save money that you are needlessly spending, but you can also actually create more money for yourself.
After you have a good method of organization for your money, focus on making a list of all of the tax deductions and credits that you will be able to qualify for, so that you can get the most from your tax returns.
The most important part of this step is that you already have a good handle on your finances, so that you can be confident in any deductions that you are planning to claim.
One huge deduction that many people use is for charitable donations.
Here is a great article on how to keep track of these types of deductions.
There are plenty of apps to help you
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Category: Family Finances
