Resolution: Organize - Week 6

Week 6: Organize Your Finances

This is a joint project with Mr Mile High. Hes my numbers guy; hes a nerd by trade. You’re likely to find me quoting Barbie “Math is hard” then balancing my checkbook. Not that I don’t know how. I just don’t do it well. I’m not savvy and its just not my thang. So, enter Hubby. When we first moved in together (LIVING IN SIN!) we took a budget/debt relief class. That helped. Not that we are out of debt or even have/stick to a budget. But, we have no issues discussing it, which is half of the battle for most couples.

As there are no coincidences, he is also reading a book about budgeting and organizing your finances week-by-week throughout the year. Isn’t it great how things work out like that?

As for MY book… It makes a good point that to allow more abundance into your life; you must invest in your financial health. Change your attitude about money and you change your future. The guru (Dave Ramsey/Financial Peace, if you’re interested) that leads the class we took several years ago has a similar mantra- "If you'll live like no one else, later you can live like no one else." What that means is if you'll sacrifice, pay a price and do the things it takes to win now as so few people are willing to do, then later you'll have the money to enjoy life in your golden years and give to worthy causes, maybe even pay cash for a house as so few people are able to do.

With that, this week’s goals and tips:

• Gather all of your bills and decide on one place to keep them all. All mail in our house immediately (theoretically) goes straight to the office and is sorted. We track our bills on a calendar that was printed from MS Word and is stored in a 3-prong folder. The bills are put in the folder pocket until bill-paying time.
• Make a list of income and expenses. You can use Quicken or Excel or even just paper and pencil. But do it. Track the following:


• Fixed expenses:


• Rent/mortgage
• Phone
• Cable
• Utilities
• Insurance
• Credit cards & loans


• Controllable expenses (track for 3 months to get an average):


• House maintenance
• Transportation costs
• Child care
• Food
• Personal care


• Create a budget based on income and outcome. Our old Guru suggests spending every penny on paper. Even if you have a “miscellaneous” line, spend that money!
• Schedule times each month to pay bills. Generally done on pay-day(s).
• Commit to your future. Invest in your company’s 401K or something similar. If they match, do the maximum they’ll match. Free money for the silver-haired you!
• Ask for help if you need it. Not everyone is cut out to do a budget, invest, etc.
• Set up a college fund. I have signed up onto UPromise.com. Love this site! They give me money for my shopping!
• Take advantage of auto bill pay. Through your bank – at least you save $0.39 on each bill! If you can do it through your creditor, they may give you a discount, because they are guaranteed their money each month!
• Consider using a software that works with your bank. When we banked at Chase, they could sync up with your Quicken account. However, we had a horrible time with them, so we are no longer customers. And our new bank doesn’t have this option. Bummer, it could be cool!
• Your fixed expenses should be no more than 65% of your income.
• Once a Month: Balance your checkbook. Duh.
• Every 3-6 Months: Review your 401k. Unless we’re in an economic down-swing and seeing it go down depresses you.
• Once a Year: Update your budget and do your taxes. Unless you want Uncle Sam knocking on your door!