Sharing is caring!

Image source: Pixabay

 

Why do some people seem so organized when it comes to finance, and yet other people seem so disorganized? Is it really a Type A and Type B personality? Some sources have speculation that disorganization results from perfectionism, brain-related conditions, or even a person’s beliefs.

 

But the truth of the matter is that good organization is a life skill, and it’s one that everyone can learn. Let’s start simple, by considering a few ways you can get organized with your bills immediately.

1. Create a Monthly Budget

It’s important to make a detailed, comprehensive budget and stick to it, especially when in the throes of debt. Having a well-organized budget will help you keep your affairs in order when the bill collectors start calling. Keeping a well-delineated budget will help you accrue savings at the end of the month that can then be invested in other things, or kept as a rainy day fund.

2. Set Up Automatic Payments

Make sure to set up automatic payments on bills that you know you can cover expenses each month. This will help keep you from forgetting to pay important utility bills. Making automatic payments each month also keeps you in good standing with your utility providers.

3. Keep Track of Receipts

Make sure to keep a folder or a collapsible paper organizer to keep track of your receipts, for both business (if you have one) and personal. Organize them by function and keep them for tax season in April, or the four quarterly tax seasons for businesses and organizations.

 

Keep gas receipts too because this will be an easy deduction especially for businesses and professional individual accounts.

Find out if your business can count gas cash receipts as deductible for your business.

4. Track Recurring and Upcoming Bills

Keeping track of your budgeting journey over the years will come in handy when looking to see where your budgets could be improved as your life changes.

 

For example, a budget of a single person or a person with a business will look much different from the budget of someone who gains a family in 5 or 10 years or has a sudden growth in their company.

 

You might be able to look back on your expenses in previous years and see where you could save money or increase expenditure for important things like a new car for the family you’ve gained, or new office space for your company if you have it in your budget by then.

 

With careful financial planning and shrewd spending, you can save thousands of dollars to be able to afford the things that you want as well as the things you need.

5. Gather Payment Information Into One Place

Whether you use Microsoft Excel, Quicken, Mint, Google Sheets, or another organizing software program, be sure to put all of your monthly and annual expenses in one place so that you don’t get tripped up through multiple applications.

 

When it comes to finances, keep it simple and keep everything together so that you have a full picture of what you owe and will continue to owe through the fiscal year and years to come.

 

This will also help you to backlog what you’ve paid so that if creditors call over missing expenses, you’ll be able to provide proof over whether or not you actually paid that particular bill.

Credit Card Bills

Credit card bills are one of the most overlooked expenses Americans have today. Not paying careful attention to the payment of your credit card could lead to it being charged off the remaining balance on the card, which could lead to unexpected negative balances.

 

Make sure to keep track of your credit card statements and billings so that you don’t have to deal with any unexpected debt. Credit card debt can be one of the hardest debts to pay off.

 

Find out more about paying your credit card bill debt at CardRates.

6. Adopt a Cash Envelope System

Using a cash envelope system is a smart time investment because it allows you to track expenses much easier and save money. With a cash envelope system, you set aside money in each envelope based on what you need for your budget.

 

Depending on how you prefer to organize your financial budget, you can put away enough cash to save for a month, quarter, or full year. Doing so is a great way to make sure that the money you put in these envelopes goes to exactly what they’re supposed to go towards. Some people who use a cash envelope system have extra money to go towards expanding buffers.

Organization is Key! 

Whether it’s in a home office or an alcove where you keep your bills, make sure to keep all of your physical records (as well as your digital) in one place for easy reference later. This will help to keep you organized in case you ever need to refer back to previous years or months, and will help you in the long term.

 

It’s easy to get buried underneath bills–especially when the dreaded pink bills start coming in, indicating a shut-off. But staying on top of things, and keeping track of dates, is the first step to avoiding debt.

 

With a little bit of effort you can organize your finances, and you will then quickly discover that with an effective system of managing finances, you won’t forget to pay or fall into debt.