So, this blog has been a place where I have really tried to only share posts that would inspire and perhaps even challenge anyone who may read to focus on those moments in a day that make it all worth it, the lessons learned, the “bigger picture” (which all too often is found in the seemingly “smallest” moments. It has been a place where I hope I have encouraged others to really take a longer look and a deeper breath, to listen for the peaceful hush and focus on what matters most.
And today? Today I am blogging on:
“Organizing the Finances”
I know. The peaceful hush just got sucked up like a Lego piece from a vacuum. The word “finances” hitting around in your heart and mind.
“Da-dunk, da-dunk, da-dunk…
Vvvvrrrrooommmm.”
Inside it may make you want to scream, “Not the F-Word! No!! Turn it off! It’s going to break me!! Don’t you smell the burning?!!
Can I tell you something today, reader?
Finances that are out of order, always cause a burning.
They will burn a hole in your peace.
They will burn a hole in your marriage.
They will burn a hole in your pocket.
They will break you.
And it is not God’s will for you to be broken.
At least not permanently.
And so, keeping your finances organized is so important.
Over the past 12 years, my hubby and I have shared on the topic of finances in group settings and in private settings with newly wedded couples. Over the past few days, the topic of “getting your finances in order” has once again been heavy on my heart. So I felt led to encourage on this very thing.
A little disclaimer here: Me and my hubby are not licensed accountants or financial advisors. We are simply a husband and wife who, by trial and error, have discovered some practices over the years that really helped us and so we have shared with others the practices we have put in place.
Disclaimer over 🙂
So with that said, I want to share with you 9 basic steps that you can do to start getting your finances organized.
These 9 steps should leave you with two great things accomplished:
1. All your “important papers” organized.
2. A monthly checklist you can use to help keep track of your monthly bills.
These steps are not the be-all, end-all, for sure, but hopefully a good start in the right direction.
The 9 Steps:
1. Sort the Stack: Ok so that stack of papers you just got in the mail- and all those other old stacks- the ones in the shoeboxes or bags, the ones that you keep saying you are going to file. The ones that have all those “important papers” and you are pretty sure you looked through them all and paid what you needed to pay- those stacks… Those stacks needs sorted.
Gather all your stacks into one massive stack and begin sorting that massive stack out. It sounds overwhelming, but take heart. It really is no harder than sorting out laundry or crayons by color. Just look for the sender company name on each document and make piles based on company name. (Note- you need a large open space for this part. And second note- not a good task to take on with little ones, babies or pets, in a room.) So big, open space… Start sorting.
2. Make folders for each company you have accounts or documents with: Use Manila folders and make a folder for each company that you have made a new sorted stack of important documents with. Simply grab a folder and write the company name on the tab. Place each folder at the bottom of each new sorted stack.
3. Sort documents for each folder: Before shoving a newly sorted stack in a folder, sort the documents in that pile by date- either “due date” or date received.
4. Make a note of “due dates”: Now, as you are becoming “date” conscious- start looking for reoccurring “due dates” on bill documents. Write the due date on the outside of each company folder- even right under the company name on the tab.
Some due dates vary slightly. It is best to go with whatever date you notice as being the earliest the bill may become due in a given month. So write the due dates down on the outside of bill folders- they will come in handy in a little bit.
5. File the folders by due dates: Now file all the folders by those due dates you wrote on the outside of the folders.
You can file them in hanging green folders in a filing cabinet, or in a basic open filing system. A filing crate or box will work.
Bottom line- you need to file them in something. Investing in a cabinet is absolutely worth the investment.
6. Make a list of your monthly bills by due dates: You have all your papers sorted and folders filed. You have your company names and due dates written on the front of each folder. So now is a great time to make a list of all your monthly bills in order to help keep yourself on track. You can do this old school style as a basic start with paper and pen. Or get high tech. However you choose- the basic idea is to make a list.
Here is a look at a basic template we used early on in our marriage:
By pulling each folder and looking through your documents, you can get a general idea of when each bill is due and how much each bill is going to be every month. Start writing your list according to the Bill Due Dates. You can also locate your total balance owed on accounts. That is a great thing to be aware of as well.
I encourage if you don’t have a list like this in place already, to make one. Making this checklist will help you know when your bills are due, to whom they are due, just how much you currently owe on accounts and it will also help you to be able to budget better for your monthly bills.
7. Refill the folders by company name: Once you have made your list remove all folders and re-file by company name. This will make it much easier for locating folders in the future.
8. Check your list: So you have a list now. You can use it to check and verify that you have indeed paid everything you think you paid. How do you do that? By checking your folders. This becomes much easier as you make the following a habit:
9. When you pay a bill- make a note of it and place it in the appropriate folder: Staple a carbon copy of a check to a bill paid. Write right on the bill document the date paid and confirmation number if paid by phone or online. This may sound a bit tedious but it literally only takes seconds to write down a date and confirmation number and minutes (tops) to file that paid bill.
Well, those were the 9 steps. 🙂
Where you go from there is truly up to you.
From there you may also want to:
– Add up all your outstanding account balances to determine just how much in debt you are.
– Add up your monthly bills to see clearly just how much you need to make in income to cover the bills you have.
– Start tracking your additional spending to determine where you can cut back and save.
– Consider using different checking accounts to help better track your spending. For example you can use 1 checking account for bills, 1 for tithing and charitable giving, and 1 for other monthly budgeted spending like groceries, dining out, gas, etc. (How this works: Paychecks can be deposited into the account from which bills are paid and budgeted amounts can be transferred into the spending and giving accounts. Anything above bills and budgeted spending/giving goes into savings.)
– You could even scan or take pictures of all documents and save all records, checklists and spreadsheets electronically in email folders or via Dropbox. Both husband and wife then could access documents from any computer, any where, at anytime.
There are many, many ways to get organized. And considering all the ways you can “improve” actually can be quite overwhelming. So my advice is just to start simple with a system that you can easily and quickly implement and understand.
So I essentially, I have suggested here for you to take all those paper documents and file them in paper folders in an old-school filing cabinet. I also suggested keeping hand-written monthly checklists which can also be filed in a folder.
Paper Documents? Handwritten check lists? Seriously?
Yes.
It is all very basic, archaic practically. But you know what? It’s a start. A beautiful start. You can always improve it and make it more “high-tech” with time.
That is what we have done over the years. But to start- we started here- filing papers and making a hand-written monthly bill check list.
You have to start somewhere.
Sometimes starting is the hardest part.
However you choose to get started, I can assure you that taking the time to get organized is well worth it, because although your finances aren’t necessarily “what matters most”, I can assure you, they absolutely matter.
So if you don’t have your finances in order- now is the perfect time to start. I am not going to go as far as saying “You will be glad you did.”
Truth be told: You may not be glad you did. In fact, let me just warn you here: After getting them all in order you may feel quite sickened at the realization of just where you stand.
But you know what?
At least you will know where you stand.
And once you know where you stand you are better positioned to see and really pray about the further steps you need to take in the area of your finances.
There’s that f-word yet one more time…
Finances.
“Da-dunk, da-dunk, da-dunk…
Vvvvrrrrooommmm!”
Turn it off!! It’s going to break!! Don’t you smell the burning?!!”
😉
What Matters Most 