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
recurring cleaning service Wilmette ..Have you ever thought about what you are going to... Read More
While 40% to 50% of us make New Year's resolutions... Read More
Have you ever wondered what it would be like to... Read More
Commonly referred to as the first of the three major... Read More
If you have a 401(k) account, it can be very... Read More
Has anyone been to the gas pumps lately? Soon $3... Read More
The recommendations for military base closings have been released and... Read More
Today I passed a thermometer at a bank that read... Read More
If you are the normal consumer, then you've probably experienced... Read More
What is it about being frugal, why do it at... Read More
Single Mother's in need of Financial GuidanceBudgeting is key to... Read More
The Prudential has dubbed those who refuse to leave home... Read More
Address labels are many things to many different people. If... Read More
Frugal living is more than a lifestyle. It's a passion.... Read More
Your boss has just informed you that your department is... Read More
I have to admit, I do it too. I complain.... Read More
Get Access to Realistic profitable strategies & discover the mindset... Read More
1) HOW TO LOOK FOR A JOBA) The Chronological Curriculum:1.... Read More
Most Americans have been brought up to be concerned about... Read More
Chapter 7The potential chapter 7 debtor should understand that a... Read More
Now that we are in the month of June I... Read More
There have been an estimated 9.9 million victims on America... Read More
At a time when the entire world's attention is focused... Read More
If you were to ask 100 women "What would you... Read More
Vacations Made Easy: Buying a Florida Investment PropertyA relaxing beach... Read More
reliable maid service Morton Grove ..Are you a check fanatic? Don't worry, you aren't alone.... Read More
Saving may seem easier if you were saving for a... Read More
Have you ever stopped to think about how your "mood"... Read More
Would you know what to do if you suspect that... Read More
Future financial success is not a guarantee that any one... Read More
Sticking to a budget can be difficult, but with so... Read More
Those who keep a watchful eye on where their money... Read More
As the saying goes: "Buyer Beware". If you see ads... Read More
Saving for a Down Payment is hard work, so it's... Read More
If you were to ask 100 women "What would you... Read More
Shopping for groceries is an inevitable fact of our ever... Read More
If you recently became a single parent and see your... Read More
Many people spend their little income haphazardly without any planning... Read More
You've analyzed your past expenses, put them into spreadsheets, loaded... Read More
Get Access to Realistic profitable strategies & discover the mindset... Read More
Australians, in general, constitute some of the worst savers in... Read More
My personal opinion is that in today's new economy, it... Read More
Most Americans have been brought up to be concerned about... Read More
Our global society has had a wake up call in... Read More
Super-mumsIt seems that the proof of maternal efforts is no... Read More
Holy Shenanigans! More STUFF?Loosing one's business due to lack of... Read More
You have probably accomplished a great deal with your life.... Read More
If you die without making a Will in the UK,... Read More
It is crucial as an individual who is striving for... Read More
Six Scholarship judges were sitting around an oval table. Forms... Read More
Personal Finance |