Get Your Finances in Order Today – Before Things Get Worse!
October 10, 2013
When you feel overwhelmed, it is often difficult to become motivated to take action. This is especially true when you feel as though your finances are a mess. Disorderly finances cause problems, and can cost you more in the long run.
Even though it seems an insurmountable task, it is best to get your finances together as quickly as you can. Organize your finances now, and you can begin digging out of debt sooner, or get on the right financial path for a successful future.
Importance of Organizing Your Finances
One of the biggest reasons that people overrun their incomes, and find themselves paying overdraft fees or getting into debt is that they don’t know what is happening with their finances. When you don’t know where your money comes from, and how it moves through your personal economy, you set yourself up for failure.
Without the knowledge of where your money has been – and where it is going – it becomes easy to spend more than you earn. Plus, without the proper organization and planning, you could easily spend money on things that you don’t need (and perhaps don’t even want).
When you organize your finances, you can see your fixed expenses, track your spending, and make plans for a more successful financial future. Putting off getting your finances in order can lead to a future of indebtedness and an inability to meet your money objectives for important milestones like retirement.
Take the Time to Organize Your Finances
Once you realize that your financial situation needs help, start by organizing your finances. If you haven’t done much in terms of planning your finances in the past, this might actually take some time. It’s worth it to block out two or three hours (or more) to get the basic organizational structure of your financial life in place.
In order to make things easier, set up a budget app on your computer. You can use software that is meant for your computer, or you can sign up for a free account with some sort of web application. It is possible to find a number of free and freemium money management programs that can help you keep track of your money, create budgets and even plan for the future.
Keep track of your checking account(s), of course, but you should also set up a way to track your savings, and your credit cards. You can also track your investments if you want (although you may want to set those up on another day).
Start by figuring out where you stand. Set up your software to show you where your money is right now, and then, from this point forward, begin tracking all of your spending. Even on your credit cards. Go back through bank statements and credit card statements to see what you have been spending your money on.
Look for money leaks; most of us waste money on items of little importance. Once your identify these leaks, you can try to avoid spending on those things in the future. And, of course, keeping track of your spending in your personal finance software will help you cut back on the spending that leads you to overrun your income regularly.
The longer you wait to organize your finances, the worse your situation will become. The costs in fees – as well as the lost opportunity costs for saving and investing – will add up to quite a bit. Take the time now to get your finances in order, and you will be better equipped to plan for success with your money.
What do you need to get in order? What are your financial goals, and how do you plan on achieving them? Leave a comment!
This article was originally published on February 16, 2012.
All posts by Miranda