Take Control of Your Finances: Get Organized
Does your financial life feel overwhelming? You might be surprised to learn how getting organized can improve your financial outlook. Get ready to reap the rewards after following these three simple steps to organizing your financial life.
Get Organized at Home
Organization is always easiest when you start with the basics. Start by organizing your physical and digital financial documents at home.
- Designate a place to keep your statements and bills. Whether you use a filing cabinet or your computer, it’s important that your documents are organized and accessible. We recommend arranging your files by account and date. Also be sure to keep security in mind. You don’t want just anyone being able to access this information.
- Create a routine for addressing important correspondence. You could deal with everything immediately after work each day or wait to sift through your mail pile and emails on a specific day each week. Figure out what works for you and stick to it.
Declutter Your Finances
Remember when life was simple, and your only real financial responsibility was deciding how much to save from your part-time job? As you grow up, life - and your finances - become more complicated, which can make you feel disorganized. Take the opportunity to simplify your financial life with these tips:
- Review your accounts and see what you can close or consolidate. Most people don’t need several checking accounts, savings accounts and credit cards spread across various financial institutions. In addition, if you had a retirement account with your last employer, talk to your financial advisor to see if it would be beneficial for you to roll the old one into your new job’s account to keep all your retirement savings together. You’ll have less to worry about.
- If your employer offers direct deposit, take advantage of it. Set up your payroll to deposit a portion of your paycheck into your checking account, some into your savings account, and a percentage into your retirement account – if that’s not automatically deducted towards your 401(k). That makes three financial responsibilities handled every month without you having to do anything.
- Set up automatic payments for recurring bills. You can save time and avoid late or missed payments with Online Bill Pay.
Manage Financial Goals
Keeping your financial life organized in the long-term means setting and achieving goals. Here is the cycle of organization you should maintain around your financial goals:
- Track your spending. This practice will help you see where your money goes, and it can be the basis of your budgeting technique.
- Create a budget to achieve your goals. Whether it’s a house, a new car or a family vacation, start by figuring out how much it will cost. Then look at your spending to determine how you can change your habits to save for your new goal.
- When you reach a financial goal, set a new one. Financial goals will motivate you to save and achieve. Want to feel in control of your financial life? Always have one financial goal you are working toward.