One of the most important things you can do is to get your personal finances in order. This is because you have to know where you are at in order to reach your financial goals. And part of getting to where you want to be is organizing your finances. For some people, money management can be scary. However, if you take a step by step approach to organizing your personal finances, you will find that it is not as bad as you might think.
Organizing your personal finances
Here are some tips to organizing your personal finances.
- Don’t do it all at once. Break down the organization into steps. Go through your income streams one day. Make a list of your expenses the next. Compare the two the day after that. Begin seeing where you can eliminate unnecessary expenses following that. If you break it down into manageable chunks of time (say, 30 minutes a day), it is less overwhelming.
- Set up a system. I like to use personal finance software to keep track of my finances, but you can do it by hand in a ledger. This is best done right after you have a new bank statement. Go through what you have and start putting together a system of keeping track of everything from investments to spending. This may take a few days if you want to break it down instead of doing it all at once.
- Keep up with your personal finances. I keep all of my receipts for the day in a little basket. At the end of the day, I enter the receipts in the computer. I do this only once a day, and it only takes a few minutes. I also apply this to monthly statements. Once a week I do all the monthly statements (credit cards, savings accounts, etc.) that came in that week. This takes a little longer than the daily dose, but it doesn’t take too terribly long.
If you break down your personal finances, they are less overwhelming. And you will find that you can keep them organized if you take a few minutes each day.