Organizing your personal finances isn't an impossible task. Of course, there are some complications when actually trying to do it, so here you will find some very useful tips to start getting your finances in order. Let's get started!
3 tips to get your finances in order
MAKE BITE-SIZE MONEY GOALS
One study showed that the farther away a goal seems, and the less sure we are about when it will happen, the more likely we are to give up. So in addition to focusing on big goals (say, buying a home), aim to also set smaller, short-term goals along the way that will reap quicker results—like saving some money each week in order to take a trip in six months.
"Haste leads to exhaustion" they say, and it's a really accurate idea. For great achievements you always must go step by step, this guarantees a better process and better results than simply wanting to rush on everything. If you accumulate a thousands of little actions you definitely will have an amount of positive outcomes, better than wanting to have a huge result by now.
Let's say you want to buy a car, just the idea seems fantastic and you already want to be there, but if you don't make a plan consisting of little movements that will take you to that moment, we'd say you're off to a very bad start.
CREATE A FINANCIAL CALENDAR
If you don’t trust yourself to remember to pay your quarterly taxes or periodically pull a credit report, think about setting appointment reminders for these important money to-dos in the same way that you would an annual doctor’s visit or car tune-up. A good place to start? Our ultimate financial calendar.
Forgetting commitments is more common than you think, specially if you are a person with a lot of responsabilites. The best way for being organized and keep all your tasks up to date is creating a Financial Calendar. It is used to locate appointments, due dates, payment dates such as bills, debts, and others.
This is an example of how you can make your calendar looks colorful and will help you to remember and not being tedious about your obligations. It is also one of a million little steps you can follow for becoming an organized person, and this will be of help in many aspects of your life, so don't wait any longer and start putting these tips into practice!
CHECK YOUR CREDIT REPORT
A credit report is a statement that has information about your credit activity and current credit situation such as loan paying history and the status of your credit accounts.
When is the last time you checked your credit report? Never make the mistake of just assuming you have good credit because you make your payments on time or you don’t have a bunch of debt. Identify theft is a huge problem and there’s always a possibility that someone used your information to take out a loan, open a credit card or create other debts.
If you have overall control over your finances, your credit report should be included in the accounts. Maybe this report is the one you least like to check, because it can be a headache due to debts or interest rates, but it's absolutely necessary. A common misconception is that checking your credit hurts your credit score. You can check your credit score as often as you’d like, but it’s usually not necessary. Checking your credit report annually should be your minimum. Every six months or so should be good.