Do you feel unsettled when your house is a mess? There are dishes left in the sink, the laundry is piling up, and there’s a layer of grime on your floors that desperately needs mopping. To say the least, a messy house can be chaotic. Well, so are messy finances. They may not be as in plain sight as a messy home, but disorganized finances can cause you additional stress and will cost you money. With a few adjustments, you can get your finances organized and streamlined. And in the long run, this will save you a great deal of money.
Review Your Budget
Do you have a monthly budget set? This is the first step to getting your finances organized. You may be surprised by how much you are spending per month on unnecessary expenditures. Budgeting apps can easily help you get organized. If you do have a budget, are you accounting for bills and expenses that may fluctuate seasonally? Look back at your spending from the previous year to estimate things like heating bills in the winter and how much you spent on holidays and special occasions. To save money, you can cut spending in other categories during these months to make up for the increase in other areas. If your finances aren’t organized though, you won’t be able to see these patterns and make changes.
Check on Your Accounts
Don’t let your accounts go unchecked throughout the month. Sometimes when our finances are disorganized we just ignore them. But if you stay on top of your balances and charges, you can find mistakes or make adjustments to your budget before problems arise. Do you have a direct deposit set up with your employer? Make sure that checks are being deposited accordingly. The same is true for your credit score, if you monitor it you’re more likely to spot discrepancies. With a little diligence, you’ll have a better grasp on your finances just by monitoring them.
Organize Bills
Some bills come through the mail and others electronically. If you don’t already automate your bills, this can help you stay on top of payments. You also can implement a rule of paying bills on the day you receive them if you have the available funds. If you would rather wait until due dates, create reminders in your budgeting app or calendar so that you never miss a payment. Late fees can add up quickly and affect your credit.
Coordinate with Your Partner
Communicate with your partner often about upcoming expenses and review your budget together. This way you’re less likely to overdraft your accounts or make costly mistakes. Budgeting apps designed for couples like Honeydue can also help you organize your finances together. You may also want to have a separate checking account just for paying bills, a savings account, and another checking account for discretionary spending.
Organized Finances Pay Off
When your finances are organized, a huge weight will be lifted off your shoulders. You’ll no longer be at the mercy of overdraft fees, late fees, and financial blunders. With these strategies, you’ll be on your way to financial health in no time.
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