Finance Roll

With many of us, an obstacle to taking control of our finances is getting organized. You might need to spend a bit of time initially but then, on an ongoing basis, it just takes a few minutes every week. Hiring a professional organizer is a great way to get your finances organized and in shape.

Make bill paying as easy as possible. This is especially important if you find that you are often incurring late fees or just want the convenience. You can utilize an automatic bill paying system through your credit card or online banking at your bank. Get certain bills paid onto your credit card automatically every month. This is especially helpful for your cable and electric bill.

What to do with all that paper? Let's start with investment statements. First, open everything that comes in the mail. You should only keep the following: your most recent statement, a statement if you bought or sold any shares and the year-end statement. Everything else you can toss (or shred). Setting up individual files for all your separate accounts is worth the initial time. Therefore, when you are doing your financial checkup or getting ready to meet with a financial advisor, you are easily prepared. You should also create a system for your tax receipts. Make it a weekly habit and file them as soon as they come out of your purse, wallet or briefcase. When tax time rolls around, you will be so prepared and much less stressed.

Is a personal finance software for you? Many people buy it for personal reasons but always seem to be behind, so it's not for everyone. But, you should still put pen to paper and come up with a spending plan or budget on a quarterly basis. It is worth the time to rent a safety-deposit box for safe-keeping of your will, life insurance policies, and home ownership papers. Make sure that your beneficiaries have a copy of these papers as well.

Lastly, consider consolidating as many accounts as possible. Transfer your old 401(k)s to your new job or to a rollover IRA. Consolidate all your IRAs into one account and separate taxable statements into one account, as well. You'll get fewer statements every month and be able to keep track of your accounts easier. Remember, disorganization is a major enemy of financial success. It's the first step to taking control of your finances. Make it a priority!

Written by Galia Gichon

DOWN-TO-EARTH FINANCE

©Copyright 2007 Down to Earth Finance, LLC