Organize Your Finances – FOR GOOD!

by Galia Gichon
DOWN-TO-EARTH FINANCE 
Category – Other, Business 

One of the biggest obstacles to taking control of your finances is getting organized. But once you spend the initial time whipping your system into shape, or hiring a professional organizer to do it for you, it just takes a few minutes every week to stay on top of it. Here are a few changes you can make right away.

Make bill paying as easy as possible. This is particularly important if you are often incurring late fees. It’s also just convenient. You can utilize an automatic bill paying system through your credit card or at your bank. Get certain bills paid onto your credit card automatically every month. This is especially helpful for your cable and electric bill.

What to do with all that paper? Let’s start with investment statements. First, open everything that comes in the mail. You should only keep the following: your most recent statement, a statement if you bought or sold any shares, and the year-end statement. Everything else you can toss (or shred). Setting up individual files for all your separate accounts is worth the initial time. Therefore, when you are doing your financial checkup or getting ready to meet with a financial advisor, you are easily prepared. You should also create a system for your tax receipts. Make it a weekly habit and file them as soon as they come out of your purse, wallet or briefcase. When tax time rolls around, you will be so prepared and much less stressed.

Is personal finance software for you? Many people buy it but always seem to be behind, so it’s not for everyone. But, you should still put pen to paper and come up with a spending plan or budget on a quarterly basis. It is worth the time to rent a safety-deposit box for safe-keeping of your will, life insurance policies, and home ownership papers. Make sure that your beneficiaries have a copy of these papers as well.

Consolidate as many accounts as possible. Transfer your old 401(k)s to your new job or to a rollover IRA. Consolidate all your IRAs into one account and separate taxable statements into one account, as well. You’ll get fewer statements every month and be able to keep track of your accounts easier. Remember, disorganization stands in the way of financial success. Make taking control of your finances a priority!