Hi everyone,
I am new here and just wanted to say hello! I have been trying to get better at handling my finances, but it’s harder than I thought. Bills, saving, investing it all feels a bit overwhelming sometimes.i would love to hear how you all keep things organized or any tips that actually work in real life.
peter
I would say that listening to the Clark Howard show every day is the best start
These are some approaches that I have posted in the past. 1) Track all spending: Many of us know most of our expenses but not 100%. Record all spending on an ongoing basis to capture periodic expenses, miscellaneous expenses, etc. Then examine all categories for possible reductions. 2) Pay yourself first: Allocate money at the beginning of each month towards your savings/retirement buckets. This limits the amount of money available each month for expenses and “forces” additional reductions in expenses. 3) Reduce high interest debt: There are several approaches- See if you are eligible for a lower interest car loan or lower credit card interest rate (switch to Credit Union cards); use powerpay.org to guide paying down credit card debt; if your credit card debt is very high work with an agency associated with the NFCC.org. that has negotiated lower credit card interest rates.
Many individuals find the process difficult. Stick with it and pat yourself on the back as you progress.
More information about your financial situation including debt status would be helpful for additional comments.
I think step 1 is you need to create a realistic budget. I have been doing this for 25 years and it really helps to see your financial picture. I used to do a monthly budget but switched to a 12-month budget several years ago. This really helps to plan for irregular annual or semi-annual expenses like insurance and property taxes.
Peter - are you married? And/or young?
After my husband passed away in 2014, and I became solely responsible for paying expenses, I put together an Excel spreadsheet that lists all routine and periodic expenses. It separates out monthly, quarterly, semi-annual, and annual expenses, and categorizes them into utilities, taxes, medical, etc. for each month, I have a column for notes, amount, and date paid. I update the planned/scheduled payments to show the date payment cleared.
I appreciate everyone sharing their stories and offering suggestions. I think it’s a great idea to keep track of every spending because I know I spend money on little things that I probably don’t even realize. Since those annual expenses usually tend to catch me off guard, the 12-month budget plan also makes a lot of sense.To be honest it is inspiring to hear how some of you managed everything following significant life transitions. This weekend, I believe I will finally take the time to create a thorough spreadsheet or budget rather than relying solely on guesswork each month. Thank you for all the insightful responses!
Peter - I understood your question to ask how to keep everything organized, as opposed to how to make money or reduce debt. SonoranSilkies’ suggestion is a good one. I combine digital and old-school paper methods (I use a hard-copy calendar (like a journal, but a monthly calendar big enough to write in the spaces with an area for notes on the side)).
Usually in December of each year, I get a new calendar for the following year and in the notes section or each month I write down every bill that needs to be paid that month (power, phone, water, etc.) and also those that are quarterly/annually/etc. like property tax and sewer bill (mine is quarterly). I use the current year’s calendar as a guide and go through it month-by-month to see what I did the past year as a reminder of anything recurring (medical checkups, birthdays, etc.). Also, you can use it for future appointments. For example, if you doctor says to schedule a follow-up appointment six months away, and it happens to be the following year, I’d make a note in the current year’s calendar to make that appointment. So if it is October 2026, and you need to see the doctor in April 2027, go back to March in this year’s calendar and make a note: 2027 - make appt w/Dr. Feelgood - you’ll see it in December when you’re filling in your new calendar for 2027.
It takes about an hour, but worth it to me to stay organized.
All my bills are now paperless; when I get an email notifying me of a new statement, I log onto the organization’s website (don’t click the link in the email, just in case it’s phishing) and download my statement. I then go to my hard-copy calendar and next to that bill I write the date the bill is due (e.g. NV Energy - 25). I pick one day each month and write “Pay Bills”. That day is one I know will be after I’ve received all my statements for the month. On Pay Bills day, I login to my bank and schedule payments for all the bills that cannot be paid by credit card (I use a 2% cashback card that I pay off each month). As I schedule each payment, I cross it off in my calendar and also mark it in my check register so I don’t mistakenly try to spend money that is already obligated.
Great advice. 40 years ago, I saw a guy on TV and he said that he has clients write down Every Cent they spend for 1 month. At the end of the month they all saw things they were Willing to cut.
Lots of good advice here.
If you’re an employee, contribute as much as you can to the company 401k, or similar. Every paycheck. As was mentioned, pay yourself 1st.
On paper, it looks costly, but after the 3rd and 4th paychecks, you will balance out your budgeting.
Besides Clark, listen to - read Dave Ramsey.
You live like no other today, so you can live like no other in your 30’s, 40’s, 50’s, etc. Dave says it better than I do, but he is totally correct.
Money and finances are a big part of what goes on in our brains. We subconsciously sabotage ourselves really often. It’s as simple as coffee house coffee, instead of a Mr. Coffee machine at home.
Know your strengths, know your weaknesses. Build on the strengths, manage the weaknesses.
Spreadsheets and such have been mentioned, but it doesn’t need to be complicated.
A simple notebook where you write down where every penny goes, aka a spending diary, is very helpful. This only works if you are willing to be brutally honest with yourself.
You won’t know where to go, if you don’t know where you have been, spending wise.