More efficiency, More organization, More achievement!

Get quick and easy tips and ideas for organizing your personal finances. Manage your money effectively to set and achieve your short-term or long-term financial goals.

· Do you tend to be late on monthly payments because you do not have the money to pay when bills arrive?

· Do you have significant debt due to credit card companies?

· Are you always filing your taxes last minute and when you do, you cannot find receipts or forms?

· Are you always finding yourself in a situation where you cannot afford things you want in life, like a vacation, backyard remodeling, or a new car?

If you answered “yes” to any of these questions, keep reading; this article may help. 

Being disorganized with finances can lead to:

· Unpaid bills

· Late fees and finance charges

· Not being able to make larger purchases in life and therefore suffering the consequences

· Overdrawn accounts with the bank

· Purchasing of unnecessary items

· Wasted time

· Wasted energy

· Unnecessary stress and unwanted pressure

· Lost productivity

There are people who lose gift cards and rebates that could save them money. Some experience out of control spending that gets out of hand.  

The biggest problem with being financial unorganized is it is not just one thing that is affected; one problem leads to another problem, then to another problem, and so on.  Here is an illustration: 

One poor financial decision can lead to another, then another, then another…the multiplying effect becomes an avalanche that often cannot be stopped, leading to:

· Bankruptcies

· Failed marriages

· Homelessness

· Stress and anxiety

· Mental and physical pain

In fact, in a 2016 study conducted by Psychology Science, it was found that higher levels of unemployment and financial troubles led to more over-the-counter pain killer drug purchases. Even worrying about financial problems lead to more emotional and physical health challenges. The U.S. National Library of Medicine – National Institute of Health also released a study in 2016 concluding that “financial stress demonstrates complex relations with inflammation” in the body. People could get rashes in their bodies, have increased blood pressure, trouble sleeping, over eating, under eating, which then lead to other health issues. Anxiety and stress can manifest in a variety of ways in the body, including panic attacks, profuse sweating, nausea, trembling, rapid heartbeat, and depression.

Financial instability and disorganization is affecting millions of people around the world. In the United States alone, financial fragility is high, especially among minorities. Here are some eye-opening figures and data:

· 27% of adults must borrow or sell something when they have an unexpected expense of $400. 

· 25% of adults have no retirement savings and skip necessary medical care.

· Over 51% of women report not having enough money saved for 3 months of living expenses.

Source: https://www.cnbc.com/2019/11/15/29-percent-of-americans-are-financially-healthy.html

According to Marketwatch.com:

• 44% of Americans say their expenses are more than their revenues and have to use a credit card to cover some of their monthly expenses
• 42% of Americans say they have no retirement savings at all.

Even though most adults are saying they are “coping financially,” they are not saying they are stable or well-off. They are getting by and making ends meet.

It is difficult to sit and look at the financial situation at hand because ignorance can sometimes feel less stressful. Not facing the facts, though, will not solve the problem. In fact, it will create an avalanche effect where the problems will multiply and become unbearable at some point in the future.  Having organized personal finances will help relieve stress and help you get on track to success. Organizing personal finances will help you:

· Make better decisions about investment choices

· Help save money

· Decrease debt

· Get out of debt

· Increase wealth

· Improve long-term planning

· Improved mental and emotional health outcomes

· Freedom to be generous

· Better marriages and relationships

· Save you time

It is also important to note if you have children living with you, the better decisions you make financially and more organized you are, the more they can learn from you and acquire the same spending and saving habits  You will be a role model for them!

Follow these 20 easy steps and strategies to become more financially organized starting today!

1.  Set a goal to eliminate your debt. Here are 3 examples:

· I will pay off $1,100 in credit card debt by end of November this year by paying a set amount each month.

· I will consolidate $6,000 in debt within 3 months so I can pay one set amount each month and reduce my interest fees.

· I will refinance my car by end of August with a credit union so I can lower the interest rate.

2.  Write down all debt owed on sheets to carefully track each month, like a car loan, personal loan, and credit card balances. This is a stressful process in the beginning because it is difficult to face the debt that has accrued. As balances get paid using the forms, you will feel a sense of freedom, empowerment, and accomplishment. 

3.  If you have a good relationship with family members and have a small amount of debt that is incurring large interest penalties, ask for help. Often, parents and grandparents do not mind coming through with helping if the request is somewhat small and unburdening.

4.  Do some research on credit scores. Find out your score from a local bank or credit union, then research ways to get the score higher.  Higher scores will lead to lower interest rates and more savings.

5.  Do not go to any store without having a list of exactly what needs to be purchased. This will help you save time walking around the aisles and save money by not buying things you do not need. A grocery list made each week, and a separate store list for all other essentials, is imperative to having financial organization. 

6. Get on a monthly budget! Doing so will help you visualize what revenues come in each month and what expenses go out. The idea is to have the revenues and expenses match so there is $0 balance at the end. An example of a budget and a free form can be found at efficiencyandorganization.com. Having a budget will help you pay your bills on time each month by tracking due dates.  The budget needs to be reviewed at the end or beginning of each month.

7. Look at your checking and savings amounts with your bank at least once each week to track and monitor each. You must be aware of exactly what monies are coming in and what monies are going out. You would be surprised at how much money might be going toward things you do not need. People often forget to cancel their free trials and months pass by before they realize they are not using the very items they “tried.” This causes tens and hundreds of dollars to be spent on items that are not needed.  

8.  Set financial goals just as you have personal goals and professional goals in life. Here are 3 examples.

· I will have my car completely paid off by December of this year by making an extra $60 payment each month between now and then.

· I will have $500 in cash saved at home for emergencies by end of January next year.

· I will have $3,000 saved toward a vacation between now and 2 years from now.

Set goals and monitor them on a monthly basis using a Yearly Spending Goal form.

9.  It is not only important to have financial goals, but also to have them in priorities. For example, which of the following goals is a priority for you?

· Saving enough money to live on for 3 months in case of an emergency.

· Buying a used car.

· Saving for a home.

· Remodeling the kitchen.

· Making plumbing repairs.

· Paying for automotive repairs.

· Doing a backyard or patio makeover.

· Saving for retirement.

These are all great financial ideas and investments, but a priority must be in place. The ones that will lead to other problems must be dealt with immediately and become a priority. 

10. Create separate accounts at the bank for specific purposes. For example, an account can be set up for vacations. Another can exist for home projects. A third can be set up for emergencies. This will allow for an organized way to track how much goes into each. Goals can be set up to track what the desired amount is for each account, and by when.

11. Put in your calendar or planner a reminder at the end of each month to track your debt, budget, and savings totals. Tracking helps you get a picture of where you are, and what your net worth is, financially speaking.

12. To avoid overspending, write a spending plan and stick to it. Here are 3 examples:

· Buy only 4 pairs of shoes this year.

· Buy only 1 new kitchen appliance this year unless something breaks.

· Do pedicures only in the summer months.

If approached with a plan, spending can be curtailed on things that are not necessary. This level of organization builds healthy spending habits.

13. Each month, research ways to save money that works for you.  Saving money on food, household goods, gasoline, can save hundreds and even thousands of dollars each year. The research can be done on Google, Yahoo, Pinterest, or any other search engine.  

14. Create a meal plan each week. Having an actual plan for meals will save hundreds of dollars and help you to live healthier! 

· Cook at home as much as possible to save money, and use the money saved for other things you want and need in life, such as vacations, paying off debt, or saving for a large purchase. 

· Cooking will allow you to be creative and make foods that are often healthier than what you would get from a local café or fast-food restaurant.

· The less you buy food from outside, the more money you will save.  Think about having lots of healthy snacks on hand at work so you are not making a trip out to
  eat. You will save gas, time, and money.

15. Look into starting a side business. If the revenues coming in are not sufficient, there must be a plan in place to generate more money. Be careful, though, because oftentimes, side businesses require you to invest money first before you earn money. For example, to have a side business as a real estate agent, you must first invest money into becoming licensed, buying software, buying marketing materials, etc. You might not see any return on your investment for 6 months or more. You must be financially prepared for that. In the long run, the side business can help generate more money.

16. Maintain an emergency fund! Oftentimes when people get a large return on taxes or even gift money, they are quick to spend on things they do not necessarily need. It is best to spend a small percentage of that money on yourself because depriving yourself from the pleasures of life by buying things here and there is not the way to go. However, majority of the unexpected money should be put aside because emergencies can and will happen.

17. Look into having proper insurance. For example, a person’s car gets stolen, and because he did not have proper insurance in place, he has no way to replace that car. He must now fall in debt to somehow purchase a car to get himself to and from work. No one likes paying for insurance, but it is imperative to have that protection for not only peace of mind, but also financial security.

18. When having celebrations and get-togethers, plan, in advance, and set a budget. This way, you do not overspend and purchase things you do not necessarily need. Ask people to contribute if they are guests – drinks, food items, etc.

19. Decluttering and having a neat, organized home and business will help lead to financial organization. Oftentimes, business owners, managers, and homeowners do not realize that they actually have items that they need because of disorganization and clutter. Avoid buying unnecessarily by developing a monthly system to stay organized.

20. Invest in furthering your education! There are many adult education programs that teach vocational skills and issue certificates of completion that can help you get a promotion in the long run. Taking classes at local colleges is an excellent idea. Finishing a bachelor’s degree program is another idea. Over the course of a lifetime, a person with a bachelor’s degree will earn on average $20,000 more per year than those who do not have a degree. These are all ways to invest in your education will can help you invest in your financial future. More skills and more knowledge will help you land a better job, get a promotion, that will bring in more revenues each month.

Personal financial organization can be achieved! It needs to become a priority, especially if the stress of not being organized is creating problems in the household. Financial organization will lead to 

· More efficiency with saved time and energy

· Better mental and physical health

· More productivity

· More wealth

· Stronger buying power

· More savings 

· More preparedness for emergencies

· Stable family life

· Allow for more giving and donating

· Allow for more generosity towards others

· Increase happiness and lead to a more balanced life

There must be organized systems in place in everyday life to help not only achieve financial freedom and peace of mind, but lead to more accomplishments, more achievements, and more fulfilment out of life. The steps and strategies here help you set up those systems in life. The idea is to pick one or two of from the list and get on the path to success!

The steps and strategies provided are actionable and can help right away. Here is what is unique about them:

1)  They have been time-tested.  

2)  They are actionable, and plannable. They can be written down to be implemented right away.

3) They are researched.

4) They are beneficial in more than one way – being financially secure and stable leads to more wealth-building, happier lives, healthier lives – both mentally and physically, and better relationships. Overall, a person will gain more satisfaction out of life by organizing personal finances to save time, become more goal-oriented, more efficient, and achieve more!

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Ruzanna Krdilyan Hernandez, Ed.D. is an award-winning educator and content creator writing books/articles on efficiency, organizing skills, productivity, goal-setting, time management, planning, self-development, and achieving more in life. Hernandez is the author of efficiencyandorganization.com, which focuses on six areas:

Personal life

Personal finances

Small business owners

Educators

Students

Careers

She writes in these focus areas on how people in every aspect of life can achieve more by being more organized and efficient with their processes to become consistent, timely, and successful. She is an expert and a lifelong learner of organization, time management, personal efficiency, and goal achievement. This article shares some of her strategies and other researched and proven tips, techniques, and strategies. Here are the 3 books published by Hernandez with links to each:

• Efficiency and Organization: To Achieve More in Life
• Organization and Efficiency in Personal Finances: Written Specifically for Middle Income People!
• The Organized Classroom

Efficiency and Organization's YouTube channel has over 200 helpful videos.  

Disclaimer:  As an Amazon Associate, I get earnings on qualified purchases. 

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