How to Organize Your Personal Finances
Organizing your personal finances is the first step to truly understanding your situation. What are the best ways to accomplish this? Here are some tips.
With a combination of modern technology and the internet, paying bills couldn’t be easier. Paying your personal bills online is a lot easier to do than writing out checks, going to buy postage stamps and mailing the bills. You may be a bit afraid to go paperless, but you can do this easily through websites of your bill service providers and even stop receiving paper statements and bills in the mail. Email alerts are sent to your email or phone when bills are due and you can pay them right then and there online. By paying bills online you help protect the environment as well as reduce all the clutter of bills in your home.
Everyone handles their finances differently. Even though you just figured out how to organize your bills online, you still want them all to be organized in one place. You don’t want to go from website to website and have all types of different passwords and logins. There are very good bill organizing software programs out there that will combine all your finances in one place. Or, if you don’t want to buy a program, you can use an Excel spreadsheet. This may take a little more time for you to organize, but it works well. Simply listing all your bills, due dates, amounts due and your log in information will put everything in one place on the spreadsheet.
Plan For Future
Planning ahead for your future is a big part of your personal finances. We all know life is not predictable and we have to have a plan in place financially if something should happen. Savings accounts are a great start for emergencies. It’s a good idea to have six months worth of living expense put away in case something happens. A retirement account is a must for the future. If your employer offers a 401(k) program, contribute as much as you can to it every paycheck.
When it comes to your personal finances, you should always know what the value of your possessions is. When you know this, it can help you decide if you should throw things out or sell them if you decide you want to get rid of things. Check on things that you have collected over time that you may not realize has value. There can be a vase laying around that you think is pretty ugly, but it could be a collectible and have some value. Searching the internet can give you a good idea about what something may be worth. It may be worth your while to save it for the future, or sell it to pay off some of your personal bills.
Don’t Over Stress
Don’t go overboard worrying about your personal finances. Worry a bit and then let it all go. Create a nice budget, get yourself on a financial bill organizer and try to enjoy life.
Organizing your personal finances can be pretty easy if you follow some of the above tips. All of these will help to plan for a better future and keep you much more organized giving you a lot more time to have some fun with your life. Don’t forget to periodically check your credit score to see how you’re doing – it can be a great barometer for this!!
Ryan Fields writes about finance and checking his credit score at creditscore.net.