It's easy to watch money come in and watch it go out just as quickly. If you don't know how to organize and track finances, then it will be hard to maintain financial stability. you might not know why you can't hold onto your money. Without a way to track your finances, you're looking at a recipe for a financial disaster. Continue reading this article as we talk to you about ways to organize your finances and become financially stable.
Payroll, Paystubs & Finances
Whether you're a small business owner trying to figure out payroll or you're a freelancer trying to track your income, the following tips will help. Organizing your finances doesn't have to be hard when you know what you're doing.
1. Create a Monthly Budget
You've probably heard the term budgeting at least one hundred times before but knowing about, preparing, and sticking to a budget are all different things. Creating a monthly budget is the first step to organizing your finances. Your budget doesn't have to be complicated. The main thing to focus on is that you have a count of the money coming in and the money going out.
Make sure the money coming in is always more than the money going out. Creating paystubs is a good way to easily see how much money you're bringing in each month. Keep your paystubs organized in a file folder so you can easily come back and see what you're bringing in each month.
2. Make Savings A "Bill"
Savings shouldn't be something that is an option. Having savings allows you to feel more financially secure and it keeps you from running up debt when something unexpected happens in your life. Having six months of savings is usually a good rule of thumb in case you lose your job or something else happens.
3. Stay On Top Of Your Due Dates
While one of your bills might only be $100, if you pay it late, you might have a late fee of $35 or even more. Late fees can eat away at your money and cause you to fall in hard times. If you don't have a late fee in your budget, you're already going to be over budget and messing up your organization.
4. Don't Pay Bank Charges
When you overdraft your account, there are more charges to pay. You will find that banks aren't able to charge you as many late fees as they used to, but the fees can still add up pretty quickly.
5. Keep An Eye On Your Credit Report
Your credit report is an important part of any financial organization. Your credit report keeps track of how you manage your debts and finances. If you are on time with your payments and you have a long history of being responsible as a borrower, you will have a good credit score. Always keep an eye on your credit report to make sure that the tracking is correct.
If you see an inaccuracy, you can dispute the entry on your credit report with the corresponding credit bureau. Congratulations! You're halfway to being financially stable.
6. Check for Fraud
If someone else uses your credit card for purchases, in most cases, you won't be responsible for them. If you never notice them and don't report them, your credit card company won't be able to help you. The best course of action is to watch your credit cards and bank account for any charges you don't recognize.
Criminals sometimes try putting a couple of small charges through before they make a big purchase in attempts to clean your account out.
7. Work On Paying Down Debt
If you have a lot of consumer debt, you should focus on getting rid of it as soon as you possibly can. Debt holds a major weight on you because the interest can keep the balance going up and cause you to have to keep paying on the bill well into the future. Do you have a lot of credit card debt? If you do, then you may be only paying the interest each month and not paying anything on the principal of the loan.
Make as many cutbacks as you can and get rid of the debt that is weighing you down. Keep your goal in mind!
8. Use Technology
We are a blessed generation to have so many advancements at our fingertips. There are apps on our phones where we can find out if we have subscription payments going out that we forgot about. There are even apps that can track your income and your expenses so you can know when and where your money is going out.
Online banking is another way to stay on top of your money. Many times, you can even do online bill pay through your bank account depending on the bank you are using.
9. Don't Forget About Retirement
While retirement might seem like it is a long way away, you should make sure to plan for it. Do you want to invest in the stock market? Maybe you want to invest in real estate so you can make money off of rentals? If you don't plan for retirement, you may end up working well into your senior years. While it's one thing to choose to work through your retirement years, it's another thing when you have to work to survive.
Make Tax Time Easier
When you're looking at how to organize your finances, one of the things you should know is that taxes can take a big bite out of your money. If you don't report your taxes properly, you could be paying out money unnecessarily. To make things a little easier when tax time comes around, and avoid improper calculations, try out one of our pay stub templates. It'll make all the difference and get you on your way to becoming financially stable and organized!