If you've ever lamented at the mess you've created for yourself in your finances, you're in good company. Nearly everyone I've counseled has felt the same way at some point, including myself! Today we're going to work on bringing some order to your chaos, starting in your office.
The most important thing is that you start exactly where you are. Don't try to go back today and fix everything in the past, lets just get moving in the right direction from this day forward. Here's a couple tips I use to keep myself on track:
1. Organize your office or computer desk or wherever it is that you typically sit to pay bills. You'll need a system - something to keep yourself organized. You need to find what works for you, but at a minimum, you'll need to have a program for tracking and maintaining your money, an "inbox" for incoming bills and receipts, a "ready to file" box for paperwork entered/paid/completed and ready to be filed, a filing system of some sort for storing receipts and statements that are necessary to save for tax purposes. For the "inbox" and "ready to file" functions, I personally like the desktop organizers that are like an all in one caddy - they have slots for paperwork, writing notebooks, pens/pencils, scissors, and other miscellaneous items. You can pick one up at pretty much any office supply store. For the filing system, I have a plastic file tote that holds letter size hanging files. Each one is specifically labeled (mortgage paperwork, bank statements, insurance, medical, auto...etc), and at the end of the year I can just remove the paperwork from that particular file, bundle it up, put all the bundles together in a manila envelope, and label the front with the year its applicable to. The manila folder goes into a large tub, stays there untouched until 7 years has passed, then gets shredded!
2. Find a tool to help you manage your money. I like to use Microsoft Money and Excel. Money to manage my accounts, and Excel for my monthly cash flow plan. These tools will help you keep your check register, balance your checkbook, spend your money on paper before you spend it live, and track your actual spending so you can see how you're doing to your cash flow plan.
3. Choose a day once a week and designate it as "bill day". This will help you keep on focussed without feeling like you have to be at it every day. Save up the bills and receipts in the system I described above, then on "bill day" you can pay all the bills at once and enter them, along with any other receipts for the week, into your money tools. If you're married, make sure whoever is "doing the bills" is communicating with the other...Josh and I like to sit down after the bills are paid and receipts are entered and just go over where we are at. This keeps us on the same page and communicating about our finances.
So....your assignment this week is:
1. Find and install a money management program on your computer (or check to see if there's already one there!).
2. Purchase a desk organizer to store incoming and to-be-filed receipts.
3. Purchase a filing system for this year's receipts and paperwork.
