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Tips for organizing your personal finances

Published on November 16, 2014 12:38 PM EST

Organizing your personal finances can be time-consuming and complicated, but that doesn’t mean it is something you shouldn’t do. Everyone wants the security of a solid financial plan and unless you put together a formal strategy, such as a written plan, it can be difficult to accomplish.

We’ve put together a few tips to help you get your personal finances in order so can save yourself time, stress and money over the year.

Go paperless

Is all the paperwork stressing your out? Get yourselves organized by going digital and losing the physical clutter.

If you have regular access to a computer, paying your bills online has never been easier and can go a long way towards streamlining the organization of your finances. In most cases, you can choose to have monthly deductions taken automatically from your bank account or you can choose to manually initiate each of your payments.

Set up a budget

There’s no way of avoiding a budget when it comes to your finances. Regardless of your goal, you’ll need extra money to make it into a reality. A budget will enable you to see how much you’re spending each month, your overall income and any cutbacks you need to make.

Putting together a budget will enable you to save money for major events in life such as a wedding, the birth of a newborn child or even death. For example, you can start to plan for your funeral now and give your loved ones a helping hand for the future. We suggest you find a funeral director in advance that can help your family out if you feel you’re unable to do so before your passing.

Pay your bills on your time

Often if you pay your bills late you’ll get billed for late fees, luckily there is a way to make sure you never miss a bill deadline again.

Setting up direct debits will help with this and take away any stress – they’re quick to set up too. If you keep on top of your money by checking your bank statements each month, you’ll know that the right amounts are being taken and you will easily be able to see how much you need to live your life as well.

We suggest you set up two accounts if you aren’t great with money and budgeting. Have one account that you get paid into and that all bills are paid out of. Then set up a second account for your spending money.

Prioritize debt

Are you spending more than you earn? Have you built up debt?

Prioritize your debts and pay these off as quickly as you can because otherwise, the interest will increase. The key to managing debt is to work out the interest rates and pay off what’s costing the most each month, that way you’re not wasting money on interest when you could actually be paying off your debt. When going through this process, try to only pay for things with cash, then you can see exactly how much you are spending – and only spend what you have.

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