April 20, 2018

8 steps to an organized financial life

It is a smart move to keep all your financial expenses sorted and organized because this would help your life become much easier. Here’s 8 steps you could take to do so.

Revise your budget monthly

It is possible to incur changes in your bills every month. It is always a good idea to revise the budget which you set for yourself and make necessary adjustments. This would help you to prevent any chances of overdrawing from your bank account.

Financial Software help

It is a myth that only investments must use Financial software. Just one search could help you to find a relevant software for your scale of expenditure and due payments which might very well be free of cost. Programs like this are meant only to support you and should be used to the fullest.

Arrange your bills

There needs to be a separate place where you can arrange all the bills which you receive physically so that you don’t lose sight of them or ultimately lose them. Try to spend some money on a folder where you can file all these bills and keep them secure and private.

Financial Pyramid

Pay off bills fast

Try to pay off the bills you need to on the same day as you receive them, provided you don’t have any other charges coming your way which could cause an overdraft. There are bills which come electronically and attention must be paid so that you don’t pay the same bill twice.

Maintain a checklist for bills you expect

It is good practice to create a manual checklist as the month is underway and add to it all the bills that you expect to receive and pay off within the month. Make sure to keep this checklist in front of you in places like your desk, as a file on your desktop or in the space where you keep all the bills.

Discuss with people you share accounts with

If you share accounts with a family member or spouse, it is necessary to have periodical discussions about the spending patterns so that you are not in the dark about how the other person has been spending. Any costs that you are unaware of can blindside you when you least expect it.

Direct deposit pay-checks

It is imperative to check and verify that your account has been deposited with the amount that you were supposed to receive before you start spending. There are times when the pay-check may not have arrived on the due date in spite of the fact that the pay day has passed.

Two bank accounts

It is always useful to separate bank accounts and use one to pay off important bills and the other one for various expenditures which you may intend to have. This is a fool proof way to ensure that the money you had set aside to pay off those important bills aren’t spent off.

organized financial life
About Francis J. Schwager