Do you feel like you have no idea how much money you’re spending each month?
Are your credit card statements always a surprise?
In short, is your financial life disorganized?
Facing the unknown every time you balance your checkbook can be extremely stressful. Lost bills, missed payment deadlines, and overdrawing your checking account lead to penalties and fees. Forgetting to pay a bill (or two… or three…) due to disorganization is frustrating and can cause financial hiccups. Fortunately, this is an easy financial problem to fix. Here are seven simple tips you can start today to help organize your financial life.
Expect your expenses.
If you’ve already created a budget, great! If not, start simple: Write down all of your expected expenses. At the end of the month, record your actual expenses and adjust the budget accordingly. This process allows you to see how accurate your spending expectations are and how you can use your funds more wisely.
Create a checklist of bills.
You likely know what bills you pay each month. If you have other bills that are due quarterly or annually, you expect those at certain times as well. Make a checklist of all your expenses and tick them off each month to keep track of what you’ve paid and what’s left. This is especially important if you’ve recently moved or changed your email address, as it will help you identify if you didn’t receive a statement you were expecting.
Pay your bills immediately.
While there may be months when you need to wait for a paycheck to post before covering a bill, try to develop the habit of taking care of your bills the day you receive them, whether electronically or via snail mail. This approach solves two problems: you won’t risk losing the bill, and you won’t miss the payment due date.
Sync with your significant other.
If you share expenses and accounts with someone else, it can be easy to overspend if you’re not tracking each other’s financial activity. When multiple people are writing checks without communicating and logging those expenses diligently, it’s easy to overdraw from your account.
Confirm your direct deposits.
You can’t spend your paycheck before you’ve received it. With paper paychecks, this is straightforward. However, if your pay is direct-deposited, you don’t have control over when it actually hits your bank account. Electronic payments don’t always post on the expected date. Before making that big payday purchase, check your bank statement online to verify that the funds are available.
Split up your money.
Consider setting up two checking accounts: one for paying bills and the other for discretionary spending. Prioritize funding your obligatory account first to ensure you have enough to cover your bills. Any “leftover” funds can then be allocated to your discretionary account.
Use a financial app.
Financial software can be a great way to organize your finances. Numerous online budgeting apps are available (many for free!) to help you keep track of daily and household expenses. These tools can be tailored to fit your unique circumstances and goals.
If you’ve tried implementing these tips with little success, it may be time to seek professional advice. Reach out to DebtGuru.com to speak with one of our friendly financial counselors. We’re here to help you find solutions that make sense for your unique circumstances.
