Finance, one thing we all need to be equally organized and well-kept like anything else around us. As much as we would dislike a messy and an unorganized space, the same goes with finances. Being disorganized with your finances, bills and payments will not only frustrate you eventually but also can lead you to debts and growing late fees.
Before thing get messy, let’s get organized with ourselves to help our finance work without any hindrance.
Keep a tab on expenses: You need to know how much money is coming in and going out. This will help you understand where you need to cut your expenses and use that money to meet your financial goals.
Keep all your bills organized: If you have the tendency to toss all your bills in a box or a drawer, chances are you will forget about them. So, make sure you keep your “Yet to Pay” bills in front of your eyes and set reminders for payment or set up auto debit from your bank account. This way you will not miss any of your payments and pay late fee for your carelessness.
E- Payment: Continuing from above, all utility centers and banks offer auto bill payment option. So, choose that so you don’t have to worry about your bill payments. Think, you are on a vacation and having a good time and all of a sudden you realize you have missed a bill payment. How stressful could that be. And if you had opted for auto payment, you would be happily sipping that pina-colada in the pool.
Check your bills and statements: Don’t just keep your bills aside without reading them out. There could be an incorrect charge or an error which you could miss if you don’t look at your bills. It’s better to be vigilant than to pay for what you have not done.
Get rid of old records and documents: It’s better to shred old records once you know you will not be needing them for tax or any other reason. Clear desk help to be more productive and think clear.
Keep separate bank accounts: Maintain separate bank accounts, one for your house expenses and other for paying bills. This way you will not land up spending the amount meant for bill payments over a party.
Co-ordinate with your partner: If you are sharing your expenses with your partner, spouse or family member, make sure to discuss the payments due with them. If your wife went on a shopping spree not knowing there is a bill payment coming up, you will now have a payment that’s going to bounce.
Now that you know how to organize your finances, don’t forget to keep track of your life because as life progresses, new experiences and expenses follow, like getting married, moving into a new house, or having a baby. All these events impact your finances and can shuffle your entire financial planning. So be aware and plan in advance for the coming events of life by readjusting your spending’s and savings.
In my next blog I will talk about why one should spend in cash and not on credit.
Till next time,
This blog is a part of Blogchatter’s #blogchatterA2Z challenge.