If you're like most people, your personal financial records are most probably kept in less than "Good Accounting Practices" standards. For example, stashing old ATM receipts and hanging on to a stub showing what you paid for a pack of mints two years ago (cash, of course), might be filed with your paycheck stubs, credit card statements ? paid and unpaid alike ? as well as a few tax forms, a stray paper clip and a penny. Anything from an old shoebox to a toolbox would do you for this method of personal financial tracking but you can do better than that.
Not to worry. Here's how:
1) Plan for a few hours of "alone time" with your financial records. This is a dandy time to pack the kids off to the mall, put up a pot of excellent coffee and a little snack (preferably chocolate), as a treat when you're done.
2) Supply yourself with ample space, such as a large dining room table. Make sure you have enough organizing supplies close at hand: sticky notes, file folders, a tub to hold them with hanging file folders, large envelopes, a check file, ring binder/s and a three-hole punch if you like, an open stacking file, and an organizer/sorter. A trash can by your side is a must.
3) Get everything from everyplace ? shoe boxes, check files, file folders, etc.
4) While enjoying your cup of coffee, make a game plan. Decide what you're going to put where: e.g., checks and statements go in a specific file for checks and statements, credit card statements can be unfolded and placed in a file folder, etc.
5) Start sorting on the table. Checks go here, ATM receipts go there, paycheck stubs go over there, paid bills go on the other side, etc. until all the "stuff" is divided into neatly organized piles. Use sticky notes to mark what-goes-where on the table to avoid confusion.
6) Put all the "paid" items away first. Be ruthless ? it's perfectly okay to toss the receipt for those mints from two years ago.
7) Put the rest of the inactive items in the envelopes, file folders, check files or other storage devices as are interesting, functional, and readily available from your local office supply store.
8) Have another cup of coffee and tackle the active, or open, items. Decide what you're going to pay and when. If you have an open stacking file, you will find one with four compartments (one for each week of the month), very handy for this purpose.
9) Balance your checkbook. Now.
10) Enjoy your chocolate after putting everything away where it belongs and, oh, by the way, check the calendar for when you'll be doing this again next month.
Of course, next month this will all be done much faster.
I highly recommend using technology to make this much easier and faster. Programs like Quicken and Microsoft Money will help. Really any spreadsheet program will do.
Have a category for each life area you spend money. Once a week or month take your receipts, checkbook records and scribbled notes and record where you spent ALL your money....every penny. One of my students was shocked to find out he was spending $75 per month on orange juice! Legend has it that the Rockefeller boys did this and they turned out alright.
This time next year you'll wish you started today.
Leo J. Quinn, Jr. owner of http://www.leoquinn.com is a financial educator from the Albany, NY area. For over eight years he has been helping thousands of people get control of their finances and get out of debt in a fraction of the normal time. He has a special offer for readers of this newsletter at http://www.leoquinn.com
shuttle from O'Hare Bingham .. Lockport Chicago limo O’HareToday many women are struggling with debt and it's even... Read More
Did you know that 43% of all married couples argue... Read More
Do you have a 401(k) retirement account? Are you vested... Read More
Despite how easy it is to balance a checkbook, very... Read More
Car donations and used car donations are the way many... Read More
Your food budget is the most flexible area of your... Read More
Did you have a piggy bank when you were a... Read More
I have to admit, I do it too. I complain.... Read More
Many people graduate from college owing thousands of dollars in... Read More
Get Access to Realistic profitable strategies & discover the mindset... Read More
ID theft is a major consumer concern, though there is... Read More
Most of us, especially those of us who have debtor's... Read More
Saving may seem easier if you were saving for a... Read More
If you recently became a single parent and see your... Read More
For me, the most terrible time of each month is... Read More
The price of gas continues to climb, and with continued... Read More
If you've been to a shopping mall lately, you've probably... Read More
Are you having problems with debt? Are you afraid to... Read More
When people speak about the increasing age expectancies, they generally... Read More
There is a new bill that is being passes, it... Read More
It is crucial as an individual who is striving for... Read More
Traditional checks probably won't disappear anytime soon, but processing checks... Read More
Women have a love/hate relationship with money. Most of us... Read More
Would you be interested in freeing up 10% to 15%... Read More
What is it about being frugal, why do it at... Read More
Mishawaka limo O'Hare ..If you are the normal consumer, then you've probably experienced... Read More
Most Americans have been brought up to be concerned about... Read More
During the last twenty years, banks have offered a number... Read More
Millions of people have a checking account and many people... Read More
To save on food, be an opportunist. Buy what you... Read More
Did you have a piggy bank when you were a... Read More
1. Lighting & Light Bulbs Install low energy light... Read More
The Check 21 Law is the new federal law for... Read More
What is finance and what do you need to know?... Read More
It doesn't take much for you to get behind on... Read More
Frugal living is more than a lifestyle. It's a passion.... Read More
Super-mumsIt seems that the proof of maternal efforts is no... Read More
If you want money you need to learn how to... Read More
At a time when the entire world's attention is focused... Read More
Are you having problems with debt? Are you afraid to... Read More
1. If you have your haircut every 3 weeks, try... Read More
I've been going through and interesting growth period lately that... Read More
I've been sharing the following idea with people for a... Read More
Vacations Made Easy: Buying a Florida Investment PropertyA relaxing beach... Read More
Here are ten steps you can follow to help improve... Read More
We live in a crazy world. Someone ought to sell... Read More
If you recently became a single parent and see your... Read More
If you die without making a Will in the UK,... Read More
Get Access to Realistic profitable strategies & discover the mindset... Read More
If you have a 401(k) account, it can be very... Read More
Personal Finance |