Keep control of our finances means that we do not squander money. Money is too hard to win just to throw it out the window making ridiculous purchases or payments.
So, to get organized, here are the following methods:
Firstly you must meet at a central point all your paperwork. So if it hangs around the house (also check the top of the fridge), get off, and go up a folder for each of the items below:
- Checking accounts;
- Savings accounts;
- Credit card accounts;
- Retirement accounts;
- Lines of credit;
- Tax (return).
You must know where you are, and how best to proceed and sit down and go through all, all your paperwork.
Automate your savings
Then, if you have not already done so, you should open a savings account with interest. Finally, “high” is probably not the right word right now because interest rates continue to decline, it prevents you save even more on this type of account to your bank account as usual. This account will allow you to set up an emergency fund if you do not, and that it’s highly recommended.
Once the account is opened, make sure to transfer automatically any amount that you have taken the time to evaluate; it should not be that amount set aside prevents you from working. Do not be discouraged if the amount is small, it does not matter. If you set aside 10$ or 20$ per week or every two weeks, and if you do not touch it, it will always be better than nothing. It will be up to you to increase the amount over time. The most important thing is to begin. You will be surprised by the speed at which your cushions magnify. The key is to proceed automatically. Do not wait until after a cash gift, a tax refund possible. No procrastination, the point is, the faster you start the faster you will see results.
Organize your bills
Make a list of all the bills you have to pay every month, in chronological order (which must be paid first in the list). Do not forget to include post-paid vouchers that you could fill. If you have bills that are paid automatically by bank transaction, specify the order to take into account when you went to pay your bills and reconcile your accounts.
Set up two baskets classification
In the first rack (called “To Pay”, divided into two sections), you will rank the bills you have to pay. Under 1-15, you will rank the bills due at the beginning of the month and under 16-31 (you guessed it) you will rank those due the second part of the month.
This basket presents payable accounts. At the end of each month there should remain no records in both categories, except perhaps some bills that are spread over a part or the full year, such as taxes.
In the second basket you put 3 items
- Your bank statements;
- Bills you paid;
- Receipts in order to obtain tax reductions.