For some people organizing is overwhelming or even annoying. For others it is how they feel in control of their life and what is in it. Much like you organize your desk, pantry, home or office. Your finances often need organizing as well. It can actually be enjoyable as long as it is simple and you maintain what you've organized.
Set financial goals, track your spending, create a budget, and determine your net worth.
1) Set Financial Goals
What are your financial goals? Have you actually truly thought about them? Not in a pipe dream sort of way, but a real hard look at what you want and why you want it. Do you want to pay off your credit card debt? Do you need a new car? Do you want a house? Do you simply want to start to build up an emergency fund? Also, ask yourself why you want these things. Identifying a goal, knowing why you want it and how you will reach it can help you actually achieve the goal.
Then put your goals on paper.
Set up a plan. Create a plan with clear goals and a specific and realistic timeline.
2) Track Your Expenses and Spending
You can track your spending by keeping receipts, reviewing your bank accounts and credit cards, or a combination of all. Track your money for a week, then a month. Don't forget the small things. Track all of your dining out, Target runs, vending machine and coffee breaks.
3) Create A Budget
To create a budget list your income, expenses, needs, wants and don't forget your entertainment and small amounts on that latte.
4) Determine Your Net Worth
You may have a large net worth, or really a tiny one. Your net worth—the total of all your assets minus your liabilities. Your net worth is the cash you would have if you sell everything you own and pay off all of your debts. This can help you set financial goals, track spending, manage debt, and adjust your budget.
Your finances are ongoing process. You have to regularly reevaluate where you at financially. You may get a raise, or accumulate debt. Your goals may change. You may have wanted a house, and now want to travel. If you stay on top of your finances and keep your financial goals and life organized you can achieve the life you want.
Disclaimer: The content on this site is provided for information and discussion purposes only. It is not intended to be professional financial advice and should not be the sole basis for your investment, financial or tax planning decisions. Under no circumstances does this information represent a recommendation to buy or sell securities, or any other products, or services. All content and information is subject to change at anytime.