1. Put your bills in one place:
Separate your bills from your mail and keep your bills in a drawer. Getting all your mail mixed up makes you unorganized and you may forget when something is due. This can lead to unwanted late fees
2. Pay your bills on time:
I suggest keeping a calender and notebook to keep track of what is due. Instead of paying your bills as you receive them, call the creditor to find out when they need to receive payment before the bill is considered late.
3. Read your credit card statements:
Although most people take advantage of low interest credit card offers, beware of them using it as bait for new customers then switching to higher rates later on. Make sure you check over your statements to see if the interest rate is the same and if there are transaction fees added. Calling your credit card company can resolve the matter if you see your rate changed or if there are added fees. If that doesn't work, switch your money to the rate you want.
4. Do use the option of automatic payments:
In addition to banks offering to automatically deducting money from your account, lower interest rates may be offered for signing up to this payment option. The reason they do this is because they get their money faster and on time. Just make sure to keep records of the deductions in your checkbook so you don't bounce checks.
5. Computerize your checkbook:
Using a software program is a handy way to organize your finances. Whether it's Quicken, Microsoft Money or another package, these easy-to-use programs make bill paying and bank reconciliation easy. Computer checks can be ordered almost anywhere and fit right into most printers. Once the checks are printed, all of the information is automatically recorded in your electronic checkbook. Furthermore, many banks have direct downloads into these software packages so when money is deposited or withdrawn, the transaction is entered immediately onto your computer. It also helps when tax time comes around.
6. Get rid of unused accounts:
Whether it's a credit card or bank account, make sure that it's closed. Not only will this improve your credit score, it is a useful way to avoid money from being scattered all over the place. Don't let department stores and credit card companies lure you into opening new accounts by offering favorable interest rates and purchase discounts. It's easy for credit to get out of hand by taking advantage of every credit offer that comes your way.
7. Consolidate your accounts:
If you have several credit card accounts with outstanding balances, try to consolidate them into one. Be careful and check the balance transfer interest rates and one-time fees. Also, make a list of all your open Money Markets, Savings, CDs, IRAs, Mutual Funds, and other accounts to see if any consolidation can be done. Don't scatter your money around or you could lose track of it. Keeping track of everything and staying organized reduces errors.
8. Establish automatic savings:
Create a link from your checking account into a savings account that will not be touched. This can usually be done through the banks and automatic amounts will be transferred over each month. Most people will not put money into a savings account on a regular basis. They may wait until a large tax refund check arrives or some other event to actually deposit money into savings, retirement or other accounts. If you establish an automatic savings deposit every month, your accounts will begin accumulating money faster than you think.
9. Clean up your files:
Organize your files in a filing cabinet. Keep individual files for paid bills. Go through your files at the end of each year and throw out bills and receipts no longer needed for auditing purposes. Contact your local IRS office to see how long records need to be kept for audits. Usually federal tax return audits can be done three years back but cancelled checks may need to be kept for seven. Consult the Internet for auditing and records keeping procedures for your state or region.
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