With spring around the corner you may be planning to clear out the clutter in your home, but have you considered de-cluttering your financial life? Here are a few tips to help you streamline your finances.
Think Ahead. If you don’t know where to start, think about where you want to be when you complete your debt settlement program. If you need to, write down your goals. Carry a photo of one of your goals with you and place it in an area where you know you will see it. For example, if you carry the photo in your wallet, seeing it every time you make a purchase may help you re-categorize a “need” into a “want.”
Make It Easy On Yourself. Here’s a scenario: It’s time to file your yearly tax return and you find yourself scrambling at the last minute to find receipts that are required to write off business expenses. You can’t find them, and are so exhausted from looking, you postpone doing your taxes one more day. Sound familiar? If so, you might want to invest in an inexpensive filing system, such as flat pocket files. Then, you can keep all of your receipts, financial statements and documents together, labeled and organized. Taking the time to complete this simple step can set you up for success.
Budget, Budget, Budget. Consider your income and create, or revisit, your budget. Budgeting sites recommended by Kiplinger.com include Mint.com, Geezeo.com, Buxfer.com, BudgetTracker.com and BudgetPulse.com. You can also use software such as Microsoft Excel, Microsoft Money or Quicken to keep things organized. Do whatever works for you so that you are more likely to keep your budget in mind and frequently review it. Sometimes pen and paper works just fine!
Pay All At Once. Many people pay their bills as they arrive, not realizing that paying them all at once could give them a better picture of their total expenses. Even if you live in a small apartment, there’s probably a space where you can set aside bills as you receive them. If you could organize them according to due date, that would be even better! Then set aside a regular time to pay all of them at once, for example the 7th and the 15th. When it comes time to write checks or pay your bills online, make sure you have everything gathered so you don't lose your train of thought while grabbing a pen, calculator, checkbook, envelope, stamp, etc.
Go Paperless. If you’re sick of sorting through stacks of bills and mountains of receipts, think about scanning all of your financial documents so they are filed neatly on your computer. Dispose of the paper hard copies by shredding them. Going completely digital is not comfortable for everyone and is just an option to consider. If that is what you decide, remember to save original receipts for returns or warranties!
