When the new year was approaching, many of us were making resolutions so we could have the best year yet. For some, one of those resolutions was to finally organize their finances. Unfortunately, many of those wonderful resolutions we took so much time to make are quickly forgotten by February 1st.
The good news is that if you fell behind, there is still time to get your finances back on track. If you follow this plan, you will be able to organize your finances in 4 weeks. After the initial four-week period, your finances will be on auto-pilot for the rest of the year!
Steps to Organize Your Finances
Week 1:
- Track your weekly spending and create a budget.
Week 2:
- Now that you have your budget created have a set amount of money transferred from your bank each month to your savings and investment accounts. This will ensure that you will have CASH to spend on your next vacation or to purchase gifts.
- While you’re on your bank’s website, sign up to pay your fixed bills (car note, mortgage, etc.) automatically each month to avoid paying any late fees.
- Contact your auto and homeowner’s policies to make sure you are paying the least amount possible. If you can raise your deductibles, it may save you a considerable amount of money over the year. Bundling your insurance policies with the same company is also a cost-saving move.
- Check your credit report and score to make sure all the information is correct. I have written a post dedicated to requesting your free credit report and ways to improve your credit score.
Week 3:
- If you usually receive a large tax refund every year, consider adjusting your tax withholdings so you can receive the money throughout the year instead of waiting for it in a refund. This “found” money can help fund your savings account or help pay off some debt. To assist you in calculating the correct amount to withhold, check out a post I’ve written about adjusting your tax withholdings.
- Scan the budget you created and see if there are any memberships you signed up for last year that you’re not currently using. I’m talking about gym memberships, museum memberships, subscriptions to Pandora, Netflix, Hulu, Amazon Prime, etc. I know they seemed like a great idea at the time, but if you’re not getting your money’s worth, cancel the subscription. If you miss having the membership at a later date, you can always re-instate the subscription.
- Walk around the house and collect items that can be sold or donated. Look in closets, the garage, bookshelves, and toy boxes. Gather quality items to be sold on eBay or at a yard sale and donate the rest. Be sure to get a receipt because your donation may qualify for a tax deduction if you itemize. Deposit the extra money from the sales to your savings account or use it to pay down debt.
Week 4:
- Research a cheaper way to watch TV. There are so many other options available other than cable or satellite. Some possibilities are Hulu, Netflix, Sling, and Amazon Prime Video. All you have to do is pay a low monthly fee, and you’ll be able to watch movies and current TV shows on your TV, computers, and smartphones. If you don’t want to cancel your cable altogether, consider dropping the premium channels you don’t watch often.
- If you have a good paying history, contact your credit card companies and request a lower interest rate. This is hit-or-miss but usually works.
- To help you plan for life further down the road, look into hiring a financial planner. In my opinion, the best ones to hire are those that are referred by family and friends. You can also search on your own at www.napfa.org. Try to find someone that charges by project or hourly. Interview many and go with your gut when deciding which financial planner to hire.
So, there you have it! If you organize your finances using this 4-week plan, your money will be working hard for you all year long and you will be in much better shape this time next year.
*Don’t forget to follow Simpleigh Organized on Instagram, Pinterest, and Facebook for more tips on managing your finances!
Related Articles:
Reblogged this on theunspokentruth12.
Awesome post! Thanks for all the great ideas.