Fairhaven Realty
Fairhaven Realty, a br of Lakeway Realty, Inc.
Financial Organization Saves Money!
Posted on January 26, 2010
It's Tuesday, January 26, 2010 and a beautiful day in Bellingham, WA. Our January has been exceptionally warm and the "white stuff" called snow has passed us by this month. Aren't we glad!
SAVE MONEY BY BEING ORGANIZED!
It's the end of the month; you're out of money and can't figure out where it went? The economic situation being what it is, you could be earning too little; or perhaps you're spending too much; then again, maybe you're simply disorganized financially.
It's the end of the month; you're out of money and can't figure out where it went? The economic situation being what it is, you could be earning too little; or perhaps you're spending too much; then again, maybe you're simply disorganized financially.
Poor planning and disorganization can cost you big-time, said Russell Wild, a financial adviser and co-author with Regina Leeds of One Year to an Organized Financial Life. He is astonished by the number of people who are well-organized in other areas of their lives, but are completely disorganized when it comes to finances. "They're bleeding money," he said.
Poor organization is expensive in countless ways: Credit card late fees and checking account overdrafts, paying additional taxes, overspending on last-minute gifts because you didn't plan ahead, failing to brown-bag a lunch, not filing for a cash merchandise rebate, paying for memberships you don't use, losing out on discounts at retail stores and/or supermarkets and paying more interest on loans than you need to.
"Spending time taking care of finances is an investment just like putting away cold cash," Wild said.
Tips to help you get your finances in order and save you money along the way:
BILL PAYING
- Does your system work?
- Have you checked out online bill paying?
- Do you at least have automatic deposit of your paycheck?
- Don't be afraid to spend a little money on file folders, a label-maker or other inexpensive tools that will help you stay organized and avoid clutter.
- Develop a system for keeping receipts. You might need them to return items, file for rebates or claim tax deductions.
CREDIT
- Pay careful attention to your credit cards. Paying interest on balances, incurring penalties and damaging your credit score will hurt your money health.
- Look up your credit report at AnnualCreditReport.com. Mistakes on those reports are rampant and can lower your credit score, which means you will pay more than you have to for loans. (You're entitled to one free report a year from each of the three credit reporting agencies. Pull one every four months to keep constant tabs on your credit.)
SMART SHOP
"People are busy these days, which leads them to take a default position with their finances," Wild said. "By blocking off time to comparison shop, people can often save a lot of money. I think people tend to overestimate the time involved."
- Disorganized people don't use coupons, store loyalty cards or online promotional codes.
- Seek out store sales, comparison shop or try to negotiate prices
- Re-examine your TV-Internet-phone package, insurance, investment fees and monthly subscriptions-you might be spending more than you need to.
BUDGET
"Most people know where their money is coming from; few people know where their money is going," Wild said.
- For just a few weeks, keep a log of where your money is going. If you primarily use debit and credit cards, much of that spending will be recorded for you on a statement. **
**A Little Organization Can Save a Lot of Money by Susanne, RISMedia.com distributed by McClatchy-Tribune Information Services.
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