Financial Cookie Jar

How to Organize Your Finances in 4 Easy Steps

“Track every penny you spend.” I have heard this suggestion as a solution to my financial woes over and over again. If only I had a quarter for every time I heard it. Maybe all of those quarters would help take care of those financial struggles.

But I have slowly come to realize that tracking each penny doesn’t have to be difficult!

1. Your first step to success: Get a system. Finances are much more manageable if you are organized. Whether it be a pencil and paper or a computer program, your system should help you keep track of your money more efficiently.

2. SIMPLIFY. Get rid of as much paper as you possibly can. Consolidate accounts and only keep the credit cards that are completely necessary. Cancel unused accounts. Downsize the amount of junk mail you receive through the Direct Marketing Association’s mail preference service.

3. Keep everything in one place. A friend of mine scans her information onto her computer to keep on a file. Some people use notebooks to store receipts and bills. Some have a cubby in their house where they store financial documents. Whatever you prefer, put all of your financial information in the same place.

Once you have designated a place, use it only for finances. Keep it clean and organized.

When your stuff is disorganized, you wind up paying hundreds of dollars a year in bank fees, late charges, library fines, overdue fees and tax penaltiesTrust me on this one. I speak from painful experience. Organization will make your life so much easier!

4. Process your financial information regularly. Set aside a time each day or each week when you can pay bills, check your statements and look over receipts. This should only take about 10 minutes each day, or 30-45 minutes for the week.

Here are some easy-to-use online tools to consider:

• Online banking…quite possibly the most handy invention since the ipod. This is a great tool to check your balance and spendings whenever and wherever you need.
• Quicken online- a free online account to help you track all of your finances. I would highly suggest this program. It’s easy and free!

Whatever your system and whatever your routine, small steps can help you get your financial life back in order.