Today on MYM360 – Organizing your finances. It’s really difficult to take control of your finances if you don’t know where anything is so taking some time to organize your finances is key to your success. Here’s a tried and true 5-step method to organize your finances:
- Check in with your budget each month – Things can change from month to month such as higher heating bills in the winter months or bills that are only due less often than monthly throughout the year like tax bills so it’s important that your budget reflects these or you could accidentally overdraw your bank account.
- Keep your bills in one place – Even if most of your bills arrive electronically, you still need a place for those that come in the mail. And, I like to print out the electronic bills as well so that I can take time to review them. Otherwise, it’s difficult to know if the bill is accurate and in line with past bills of if there is a mistake.
- Make a master list of your bills – Create a checklist at the beginning of the month of the bills you are expecting and then check them off as you pay them. It doesn’t need to be fancy but it can help you see at a glance if you have received and paid all of the bills due that month. I made up an Excel spreadsheet of my bills and I also added the due date for each so I don’t miss any. Then each month I print off a copy that I keep on the board near my desk.
- Get everyone on the same page – If you share accounts with someone else, develop a method to track all expenses so you don’t get caught short. Whether that’s talking to each other, collecting receipts, adding additional expenses directly to the budget or some other way to keep track of expenses so that you always know where you stand at the end of each day especially if you have some bills that are direct-debited.
- Always check your account balance before you start spending – it’s easy to get in the habit of expecting your paycheck and other payments to arrive on schedule. But, glitches do happen. So get into the habit of checking first.
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Thanks so much for listening and as always remember that minding your money really is the path to a richer life!