8 Steps To An Organized Financial Life
- vereefreeman
- Feb 19, 2020
- 2 min read
1. Review Your Budget Monthly
Even regular bills can change from month to month. Revise your budget as the bills come in and adjust other expenses to make up for it so that you don't accidentally overdraw your bank account.
2. Use a Financial App
Financial software isn't just for investing. Free basic budgeting apps are available online that can help you keep track of daily and household expenses.
3. Keep Bills in One Place
Even if most of your bills arrive electronically, you still need a place for those that come by mail. And yes, some still do. Property tax and homeowners' insurance bills typically are paid on an annual or quarterly basis, so they generally arrive by mail. An occasional expense like a medical test may be billed the old-fashioned way.
4. Pay Bills the Day You Get Them
If you have money available in your bank account and you don't have other debit card or bill pay charges coming through that could cause an overdraft, pay your bills as soon as you get them.
5. Use a Checklist for Bills You're Expecting
Neither mail nor email is perfect. Create a checklist at the beginning of the month listing every bill you are expecting. You can keep it on your desk, bill-paying area or a file on your computer.
6. Coordinate with Significant Others
If you share expenses with a spouse or significant other, you can easily bounce a check or debit card payment if you don't know how much the other has been spending.
7. Verify that Your Paycheck is Direct Deposited
If you have direct deposit you get used to your paycheck being there on paydays. However, electronic payments aren't always recorded on the expected date. Don't spend your paycheck without confirming that it's there.
8. Use Two Bank Accounts
Use one account for discretionary spending and saving, and the other for paying bills. That will prevent you from accidentally spending the rent money on a night out.
- It's Easy -
Missing bill payments because of a lack of organization is the easiest financial problem to fix. You don't have to follow all eight of these tips, but make sure you have an organizational system that you can stick to every month.
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