6 Tips to Organizing Your Finances
1. Minimize the Number of Bank Accounts.
Each new bank account adds to your list of responsibilities, whether reviewing a bank statement or making a bill payment. Keep your life simple and minimize the number of bank accounts, credit cards, and investment accounts you open.
2. Sign Up to Receive Online Bills.
Directing all your accounts to your email will help keep you organized. Create a folder in your email called “Bills” and move all bill related emails to the folder for future reference. Take it up a step by setting up a rule and have the emails automatically enter your accounts folder.
3. Automate Your Bill Payments.
Missing payments will harm your credit. To guarantee you never miss a bill payment, you can set up an automatic bill payment. Say goodbye to “Oh shoot, did we pay our phone bill this month?” With automatic bill payments, you have peace of mind knowing your bills are paid.
4. Set Up and Maintain Your Budget.
A budget tells your money where to go instead of wondering where it went. If you feel overwhelmed by your bills or are left wondering where your money is going, you need a budget.
5. Set Up Direct Deposit.
Receiving a paper cheque, driving to the bank, and depositing/cashing your cheques is a thing of the past. Save time by setting up an automatic deposit and have payments automatically go into your bank account. You can set this up with your employer and the Government of Canada. Alternatively, many bank apps have the ability for you to deposit your cheque with a picture.
6. Set Up Digital and Physical Folders.
Nothing wastes more time than trying to find a bill or receipt in an overflowing cabinet. If most of your finances digital, set up folders on your desktop (with external backup) or the cloud. Start with these folders: tax, bills, credit card, investment, mortgage. You can apply the same strategy if you use physical, financial documents.