Do you feel overwhelmed and a little bit stressed whenever tax season comes? We know that taxes are not fun at all, but it’s something we all have to deal with.
If you’re planning on becoming more organized this year, reduce clutter, and save time, then we have the solution for you. In this article, we’ll show you 7 steps you can use to start organizing your financial life.
Let’s get started.
How To Organize Your Financial Life In 7 Steps
1. Check your budget every month
Even though you may have already laid out a budget, you still need to revise it every month. Why? Because in the winter months you may have a higher electrical bill than in the warmer months, so your budget will vary slightly depending on the season.
For example, if in the summer you’ll end up paying $100 less for electricity, then you might as well invest this amount in something else.
2. Paying the bills on time
To make sure that your bills are paid on time, you have a couple of options:
– Pay them on the same day you receive the bill. If you postpone this, you’ll most likely forget about them;
– Automate bill payments. Better safe, than late.
3. Set up automatic transfers to a savings account
Having an organized financial life means that you’ll have to save a certain amount of money each month, either for personal interest or in the case of an emergency.
Because life gets in the way, there’s a high chance that you’re not going to do this on a regular basis without automating it.
4. Use a cash management app
If you need an easy way to help you keep track of your expenses, bills, payments, loans, or incomes, then you definitely need to use a cash management app.
For example, CashControl sends you reports on where your money goes and reminders about your bills. You can start organizing your financial life directly in the app, which is great.
5. Know what bills you need to pay every month
Having a checklist with your monthly bills can be a life-saver. You can put it on the fridge or in some place where you’re going to see it.
That way, you’ll know if you missed a bill or if you didn’t receive one in a particular month.
6. Manage your financial files
Whether you receive your bills in a physical format or digital, it’s important to keep them organized and in one place. Shoeboxes or binders work best for paper bills, receipts, and other financial documents.
The electronic files need to be backed up, either on an external hard drive or the cloud.
7. Know what the other person is spending on the share account
If you have a shared banking account with your spouse, then you need to check regularly with them so that you know how much they’re spending. If you don’t do that, then you may wake up to find out that your loan payment was missed because you didn’t have enough money in your bank account.
What Stops You From Organizing Your Financial Life?
Financial management issues can prevent us from having a stress-free, clutter-free life. However, by applying and implementing these small steps into your life, you’ll soon feel better about your finances.
Want to try out a simple to use cash management app? Then register for CashControl and start taking control over your finances today.