Nine Steps to Put Finances in Order!

A lack of organization can cause havoc in your finances

 

Not being organized can reek havoc in your finances as much as a lack of money. Losing bills will bring late fees, and not checking the balance of your current account can cause overdraft fees. The following steps will help you stay on top of your finances and save money on the long run.

Examine your Budget Each Month

Even regular bills can change from one month to another. Revise you budget as invoices arrive and adjust the other expenses to compensate the change and not debit by accident your bank account.

Key Points to Remember:

Even current expenses like Public Utility bills can go up or down from one month to another. Keep a trace and adjust your discretionary expenses accordingly.

Keep a check list of monthly bills to avoid unpleasant surprises.

Share daily expenses with other people in your household.

Some months, electricity bills are higher than other. Your electricity bill could be $100 more in June than in May. Your budget must reflect this increased expense. Check out what other expense you can adjust to be able to pay your electricity bill.

An remember, July will be hotter than June, so your budget will be more realist in the future.

Adjust when Needed

To save $100, you can exchange two dinners at the restaurant for a ballad on a bike with a picnic basket. Or, make up a small budget evening and go to a free concert, in the park instead of an expensive restaurant.

The best part in having to limit an expense to pay another is that it will force you to break tradition and try something new.

And if you have no budget? Make one today! Start by taking note of your expenses as you think they will come. At the end of the month, adjust your budget by recording the actual amounts.

This single process could surprise you and suggest ways to better use your money wisely.

Use a Budget Application

Financial programs are not solely for investments. Basic budget applications are available on line and can help you follow your household expenses daily.

When choosing a budget application, check the ratings in the AppStore or check on the Better Business Bureau WEB that the one you are thinking about has good reviews from users.

Keep your Bills in the Same Place

Even if your bills come electronically, you always need a place for those who come by mail. Oh yes, some still come that way. Property tax bills and Home Owner Insurance bills are generally paid yearly or quarterly, and usually come in the mail. An occasional expense such as a medical service bill can be invoiced in the old fashioned way.

Keep your invoices near your desk or any place where you write out cheques or pay your bills on line. A simple filing cabinet and few files will do the trick.

Now that most people pay their bills on line, it is common to shred all paper bills that come and can be found on line as well. If you prefer to keep all paper documents for income tax purposes or simply for safety reasons, place them in an archived system in a filing cabinet you just purchased, or scan them and archive them in an on line filing system.

Pay your Bills the Day You Receive Them

If you have money available in your bank account and you do not have other debit card fees or bill payment that could cause an overdraft, pay your bills as soon as you receive them.

Be careful with paper bills that you usually pay electronically. You wouldn’t want to pay a bill twice because you received the paper duplicate by mail. Always check with the creditor when a paper bill is received if you think an automated payment has been programmed or an electronic bill payment.

Use a Check List of Expected Bills

Neither the mail, nor e-mails are perfect. Create a check list at the beginning of the month indicating all expected bills. You can keep it on your desk, in the payment area or in a file on your computer.

Share with Other People

If you share expenses with a spouse or other household member, you can easily make a cheque bounce or have refused a payment by debit card if you don’t know how much the other has spent.

Let’s suppose your spouse has a day off and decides to have lunch and play golf with a friend. When you come home, you hear about a great game of golf, not knowingly that it costed $150 and that the automated payment of your student loan is about to bounce.

Make Sure Your Pay Cheque is Deposited Directly

If you have direct deposit, you are accustomed that your pay cheque is there on pay day. However, electronic payments are not always registered at the planned date. Do not spend your pay without confirming it is in your account.

Use Two Bank Accounts

Use an account for savings and discretionary expenses and another to pay bills. That will prevent accidentally using the rent money on an evening out.

It’s Easy

Missing bill payments because of a lack of organization is the easiest financial problem to solve. You don’t need to follow these eight tips, but make sure you have an organized system that you can follow each month.

How could three hours change your financial future?

In three hours, you could go for another round of golf. Or you could take the first step towards a more secure retirement.