Spring Cleaning

Happy Spring!

While you’re doing the rest of your spring cleaning, make sure you tackle your financial paperwork. Here are a few ideas to help you keep your finances in order all year long.

Create an efficient filing system
Once you commit to putting in the time, you’ll need an efficient filing system. It’s best to keep your files (or scanner) very close to the spot where you open mail and pay bills, that way there’s no second step involved in keeping your system organized. If you use paper, invest in a portable filing system that you can tuck away if you have limited space. If you’re lucky enough to have a home office consider placing your financial files right at your desk so filing is as easy as a swivel of the chair.

Make sure to back up your data if you’re using a scanner and make sure to create a file for tax related documents so you don’t have to search for them at the end of the year.

Sort your mail as it comes in.

There’s no sense spending your money management time sorting through junk mail. Sort your mail on a daily basis. Keep your recycling bin and personal shredder in the same area as your mail, then you can empty them at the end of the week as you would any other trash bin.

Read your statements.

I realize that financial statements aren’t the most interesting pieces of mail and they’re especially easy to ignore in your email in box. But, the more you read and understand the more control you’ll have over your finances.

Make sure to keep an eye on fees and interest rates (those you’re earning and those you’re paying) and make sure to read your investment statements so you know which investments you have and how they work. Keep a highlighter on hand to highlight and make notes on items about which you have questions.

Ask Questions.

There are no stupid money management questions. Once you’ve highlighted and made notes, be sure to ask your questions. Emailing is an efficient way to get your questions out right away while they’re still fresh in your mind. Include a phone number and the best time to reach you in case your question requires a phone call. Make sure to check for responses and follow up during your next money management session.

Get help when you need it.

If you have time, energy and the aptitude to handle your personal finances on your own, that’s great but if you’re feeling overwhelmed and need help, start to interview professionals. Whether you need a personal organizer, an investment advisor, an attorney, accountant or just a bit of education, start to look for people who listen to what’s important to you and who want to help you succeed. Regular appointments with good advisors will help keep you on track.

Get clear about what you want; then be true to your goals.

Make a list of your top five goals in order of priority with a time frame. Keep your list of goals on hand. Keep a copy where you do your money managing and keep a wallet size copy near your debit or credit cards. Staying true to your goals will inspire better money management all year long.

Use the buddy system.

Find a friend who’s ready to take control of their finances along with you. Hold each other accountable and support each other. Make sure to chose someone who will be honest but won’t make you feel bad when you’re a little off track.

One great benefit of the buddy system is that you’ll also have someone with you when it’s time to celebrate your success.