Organize Your Finances, Part 1
Do you love or loathe getting mail?
Whether it is in your mailbox or inbox, opening mail is always filled with a little anticipation. Most likely there is at least one bill and as much as you may not want to, you have to open it! So, what do you do with your bills after you open them…do you file them away or pay them as soon as they arrive, do you leave them in the envelope or inbox swearing you will get to them soon, or do they just make ”the pile” to be dealt with later?
Stop the madness and follow these tips to get your finances in order:
- Keep all your bills and paperwork in one place. If you have one basket or folder where you file all your bills as they arrive, not only will you save time paying bills, you will be less likely to forget a bill or be late.
- Plan a time each week to pay your bills. You may want to consider when and how many times a month you get paid and plan to pay bills around the same time.
- Track your income and expenses. Whether you use Quicken or pen and paper, it is important to know how much money you have coming in and going out. Remember, there are two types of expenses: fixed expenses like your mortgage, phone, utilities, insurance, taxes, savings and controllable or variable expenses like transportation, credit cards, food, entertainment, etc. Typically, fixed expenses will make up 65% income.
- Pay yourself too. Strive to put away between 5% – 10% of your income to savings or investments. Failing to plan means planning to fail.
Make time to implement these first four tips and then stop back for more in Part 2 of Organizing Your Finances.