With many of us, an obstacle to taking control of our finances is getting organized. You may need to put in a bit of time initially, but then on an ongoing basis, it only takes a few minutes each week. Hiring a professional organizer is a great way to get your finances organized and in shape.
Make paying bills as easy as possible. This is especially important if you find that you often incur late fees or just want the convenience. You can use an automatic bill payment system through your credit card or online banking at your bank. Get certain bills paid to your credit card automatically each 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 only need to keep the following: your most recent statement, a statement if you bought or sold shares, and your year-end statement. Anything else you can throw away (or shred). Setting up individual files for all your separate accounts is worth it the first time. So when you’re doing your financial review or preparing to meet with a financial advisor, you’ll be easily prepared. You should also create a system for your tax receipts. Make it a weekly habit and file them away as soon as they’re out of your purse, wallet, or briefcase. Come tax time, you’ll be super prepared and a lot less stressed.
Is Personal Finance Software For You? Lots of people buy it for personal reasons but they always seem to be behind the times, so it’s not for everyone. However, you still need to put pen to paper and come up with a spending plan or budget on a quarterly basis. It pays to rent a safe deposit box to store your will, life insurance policies, and home ownership documents. Make sure your beneficiaries also have a copy of these documents.
Lastly, consider consolidating as many accounts as possible. Roll over your old 401(k)s to your new job or to a rollover IRA. Consolidate all your IRAs into one account and also separate taxable returns into one account. You’ll get fewer statements each month and you’ll be able to keep track of your bills more easily. Remember, disorganization is a great enemy of financial success. It is the first step to taking control of your finances. Make it a priority!
Written by Galia Gichón
FINANCES WITH THE FEET ON THE GROUND
©Copyright 2007 Down to Earth Finance, LLC