Organizing your financial life is key to financial success. Setting up a well-organized system, in the long run, will be crucial to your financial success.
Today I want to share with you eight easy-to-follow steps to get started in your path to an organized financial life. Always keeping in mind that the ultimate goal is your financial freedom and freedom of choice!
- Have your Paycheck Direct Deposited
- Update and Review Your Budget Monthly– Eliminate all unnecessary expenses.
- Know your net worth– Use a financial app or spreadsheet to list everything you own (assets) and everything you owe (liabilities). Assets minus liabilities = Your Net Worth
- Use a Financial App– To keep track of income, and expenses and update your budget monthly. Mint.com is my go-to app.
- Keep Bills in One Place until paid– I recommend using a folder or big envelope.
- Pay Bills Once a Week- Try to schedule as many payments on automatic payment as possible. Once the payments have cleared the bank, I recommend you shred the bills (except invoices and proof of payment you will need to keep to prepare your tax return) to make space for new bills and eliminate clutter.
- Use Two Bank Accounts– One for paying bills and the other for savings.
- Create or Update Estate Plan Documents with the help of an attorney– Last will (with guardianship designations and beneficiary designations), Trust (if deemed necessary), Power of Attorney (Medical, General, and Financial), and Advance Medical Directive. Keep these records in a fireproof cabinet.
We will cover additional recommendations for keeping your financial life organized in future blogs.
To your happiness, prosperity, and freedom of choice!
Agustina
www.successfulwealthywomen.com
Build Wealth. Live Generously. Leave a Legacy.
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