Week 6: Organize Your Finances

This week's goals:

Gather all your bills and corresponding paperwork and decide on one place to keep all of them. Whether you are storing them in a file, a basket, or a bin, make sure you have enough room.

Make a list of all your income and expenses. You can use a software program like Quicken or Microsoft excel or pen and paper. The important thing is to get a clear picture of your financial situation. Remember to include the due dates next to each bill.

Here are examples of expenses to track:

-Fixed Expenses

--mortgage, rent

--phone

--utilities

--insurance

--taxes/loans

--savings

-Controllable Expenses (you may want to track these expenses for three months to get an average.)

--house maintenance

--transportation (gasoline, parking, etc)

--credit cards

--all food

--personal care

--entertainment

--child rearing expenses

--charitable contributions

--habits (coffee, cigarettes)

Formulate a budget based on your income and expenses.

Commit right now to your future. If you are not already contributing to a savings account or investment fund, add an amount you are comfortable with to your budget today and stick with it (this may mean a few less lattes per week).

Ask for help if you need it.

If you have not done so already, set up a college fund for your children.

Set up a plan for your retirement, investments, and supplemental income

Check your house for valuables that you don't love or use. You can sell these items to help pay down debt.

Tips:

Take advantage of automatic bill payment with your bank. The creditors you owe may even offer a discount.

Consider using a software program to computerize your checkbook.

Educating yourself about how money can work for you will make you feel powerful and therefore a magnet for more money.

Your fixed expenses should be no more than 65% of your income.

Pay your bills online and request that your bank not send you paper statements.

Consider purchasing life insurance for you and your spouse.

Consolidate your phone bills and calling plans and don't purchase ringtones.

Remove your name from catalog lists to avoid temptations.

Stay Organized!

Once a month:

Review your credit card statements to ensure that your interest rate has not changed.

Balance your check book.

Organize one section of your home and look for items to sell.

Every 3-6 months:

Review your 401 (k)

Re-evaluate the catalogs you receive and remove your name from those you no longer wish to receive.

Once a Year:

Update your budget.

Schedule a time to do your taxes.

Review your credit report.