We all have a life with multiple things going on at any given time. Maybe your life feels a little disorganized and you have a hard time remembering things. Do you know when that bill is due? What your budget is? What was that password? Are your finances organized? Let’s get there by these 3 easy steps to organize finances.
The other day I was catching up on my podcast listening. I across the title “Get your finances organized in 3 easy steps” by Shannah from Your Millennial Money. Curiosity set in so I listened to the podcast. I liked Shannah’s thoughts on this and I realized I needed to do more to organize my finances.
ORGANIZE FINANCES IN 3 STEPS
All the steps will be placed in a file or folder to make it easier to find the info. You don’t want to find yourself needing some financial info but you can’t find it. Please remember to store this info somewhere safe, like a safe or a password protected program. TIP: If you are saving it on the computer (with a password) name the file/folder something crazy, not password or financial. Maybe make it sound like a boring report for work (school) or it could be a list of something (like “types of blank”).
Ok now that we have talked about creating a file/folder lets get to the steps:
STEP 1: YOUR FINANCES ARE A BUSINESS
Let’s turn your finances into a business and look at them like a company would. First, there is always a head person in charge (the CEO), let’s name this person:
- If it’s just you then you are your CEO
- If you’re in a partnership, the person that enjoys doing finances is the CEO.
- No one? Then the person with the most time is the CEO.
The CEO is in charge of the day to day operations, like the budget and tracking spending. But if you’re in a partnership the other person has to be in the know. So you need to hold a weekly or monthly meeting to discuss: What is working and what’s not with your finances.
Here are some things that should be done in the FIRST meeting:
- Set financial goals
- Create a budget
- Have a debt payoff plan (if applicable)
- Update beneficiaries through work, life insurance, & 401k (try to check this one once a year)
- Are your credit cards working or do you need to use cash?
- Set up auto savings
- Decide what is working and if things need to be changed?
Here are some things that should be addressed in the following meetings: talk about what is working and what’s not then adjust things if they need to be changed.
STEP 2: GET IN THE KNOW
These days almost everything you do is online and it has a password/username. It’s time to organize these into a file. Remember if your saving this to a computer have a password on the file but also name the file something crazy.
Once you have your list of passwords/usernames you need to go one step more and create a file that has a list of the account numbers and where the account is (company name). I would recommend this file is different from your password file.
SIDE NOTE: Tell someone you trust the name of the files plus the passwords (don’t forget about the computer password) or have your instructions in Step 3.
STEP 3: BE PREPARED FOLDER
Talking negatively is something I really do not like to do but we all need to be prepared for unexpected events that could happen. Maybe you are hospitalized and need someone to pay your bills for you, let’s make this easy for them.
Create a list of instructions on what should happen if you cannot do your finances (a checklist). Here is an example:
- Rent is due the first of the month for the $ amount, paid to name.
Inside the folder include your will, life insurance policies, trust, and tax returns location (these should be in a safe). Another great thing to include is cash to help if you cannot use a credit card because of a natural disaster.
SEE THE BENEFIT
I really hope you see the benefit of having your finances organized. These steps could make things easier on your but also your loved ones. Remember to have your finances become a business that you are constantly improving. Get in the know with your passwords and account number then be prepared for the unexpected events. If your worried about someone finding these files that shouldn’t have them, yes it’s a worry, lock them away and protect them with passwords make it difficult to find the info if you don’t know where to look.
Please take the time to organize your finances!