Friday, October 7, 2016, AM | Leave Comment
Managing personal cash flow is a burdensome task, yet an important one that can shape your future. Staying completely organized is perhaps one of the most difficult things to do whilst managing your money.
Receipts, bank statements, tax statements, and other paperwork can quickly pile up if left unchecked throughout the year.
Fortunately, it doesn’t take the best accountants to organize and manage personal cash.
Here are five tips to tidy up your dollar bills without the hassle and stress.
There’s no space for emotions when it comes to finances. You have to think logically and strategize every step of the way. Establish a plan specific to your monthly expenses and income. Identify and categorize them into fixed and variable items. Check each item off on your list of expenses.
Any cash left after each month should be reinvested or saved up for next month’s variable expenses.
The point is to know exactly what to do with each dollar bill that comes into your bank account or wallet. If you already know what to do, temptations of impulse buying and overspending are averted.
Debt can be paralyzing. It disables you from growing your finances and limits the financial tools and services you have access to.
Even if your principal amount is small, the interest accrued from your loans and credit cards can add up to substantial amounts, denting your retirement funds bit by bit.
Eliminate debt by paying off any existing credit cards and mortgages. Avoid signing up for more loans until your existing credit is paid.
Find Out Your Credit Score
Your credit score is the first thing that will be vetted when applying for a loan or credit card.
Bad credit scores yield either unfavorable repayment terms or a rejection letter from your bank or private lender.
Basically, scores vary from 500 to 850. The higher the number, the better your chances of securing the loan and the better rates you are offered with. Scores above 700 are generally perceived to be the most creditworthy among borrowers.
Request for a free annual credit report from any of the three credit bureaus in the US – Experian, TransUnion, and Equifax.
Make Everything Paperless
Going paperless not only saves the environment by avoiding paper receipts. It also allows you to organize more seamlessly since all the information you need to organize is kept in a centralized database, from your bank’s account statements to mortgage payments. Service providers are now giving their clients the option to go paperless.
Either opt for it when opening an account or you can request for such change online. What’s great about this feature is it also updates you whenever there are changes made to your accounts, such as a deposit, withdrawal, or a simple payment due notification.
Ask For Help
When it comes to money, people are private. They keep their worries and data amongst their spouse, children, and some chosen close friends.
Refusing to seek professional guidance, however, can give you a more stressful time in managing your finances.
Bringing in a legitimate retirement money manager can help you smooth out the wrinkles in your financial situation.
While it costs money to seek the services of a professional, whether it be an accountant or a wealth manager, the service pays for itself over time.
Managing your cash doesn’t need to be perplexing. In fact, it can be enjoyable to manage it and watch the funds grow consistently.
The five tips aforementioned should cover the fundamentals of proper money management. Follow them stringently to give yourself better leverage over your current savings as well as future financial opportunities to come.
Kara Masterson is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing and spending time with her dog, Max.