Four Ways to Organize Your Finances

As tax time rolls around, you might find yourself scrambling for receipts and records of your finances. Many people find themselves in financial troubles thanks to unorganized finances. With a few proactive steps, this is a problem you can avoid. Here are four ways to organize your finances.

Get Some Folders and Envelopes

Use one large envelope to hold your receipts for the year. If you want to get really detailed, use smaller envelopes for each month. Label them and keep them in the large envelope. You could even have a separate envelope for receipts you plan to use as work-related expenses for your tax deductions.
Set aside another large envelope to hold your pay stubs and other records of income. If you are self-employed and have payments from numerous clients, make a photocopy of each paycheck. Put the photocopies in the envelope.
A folder is a perfect holder for statements. When you get your bill each month, put the statement in the folder and use paper clips to sort the different companies. For example, keep all your cable statements in one clip and your credit card statement in another. Put them all in the folder for easy access. You might want to keep a copy of the previous year's tax returns in the folder as well.

Put Your Electronic Devices to Work

Let your gadgets keep records for you. Take snapshots of paychecks and keep them in a folder if you are self-employed. Use a spreadsheet to track expenses. If you want to check all your bank and investment accounts at once, consider using a website or app such as Mint. A great way to keep organized is to check your accounts weekly or even regularly as possible. Using electronics makes this task simple.

Get Some Paper

While generally reliable, electronics are sometimes fallible so it's good to have a backup method for financial records. Use it to create a budget and list all your bills on it as well. Write down due dates and your estimated budget on the paper so you can keep track of your income and expenses. This will serve as a general overview you can check every few months. If an emergency occurs, a quick look at this shows you where you stand. If an emergency occurs and you don't have the funds to cover the emergency, you can look into payday installment loans to get you back on track financially. Keep records of your loans and repayments.

Mark Your Calendar

Whether you use an electronic calendar or a hard copy, make down all of the due dates for your bills. Give yourself a warning a week before the bill is due so you have time to pay it. Keeping your financial records organized makes life a bit easier. With a system in place, everything is at your fingertips, and you won't have to worry about misplacing important papers.