How do you handle your monthly FINANCES? Does it all end up buried in a PILE somewhere on your desk or kitchen counter? Here are some simple suggestions for making sure all of your bills are paid on time, your accounts balance out, and your financial worries disappear.

TAKING THE TIME

Select a monthly or twice-monthly date for handling all paperwork, and to meet your financial obligations. You may find this works better if you select one day EACH WEEK and stay on top of things that much better. Block this time off in your CALENDAR and don't let anything throw you off schedule. Treat this day as though you had an important appointment scheduled -- because you do!

GETTING READY

Gather all of your SUPPLIES and equipment before you sit down to deal with the paperwork. Typical things that you will need include:

pens,
file folders,
checkbooks,
stamps,
labels,
envelopes, and
a calculator
If you can set aside a space for handling your bills -- such as a desk or spot on the kitchen counter -- great. If not, think about setting up a portable workstation in a hanging file box.

CREATING A SYSTEM

Sort all of your papers into five piles. These will go into five financial folders:

BANKING (including account statements, ATM receipts, and deposit slips)
BILLS to pay (pretty straightforward!)
PAYMENT BOOKLETS for fixed obligations (such as loans, mortgages, etc.)
sales slips and cash register RECEIPTS
all other STATEMENTS (such as insurance and investment notices)
Store these financial folders in a rack or box on your desk -- that way, you can add new financial paperwork to each as it comes in.

MAKING THE NUMBERS ADD UP

Balance your bank STATEMENTS with your CHECKBOOKS. Follow the directions on the back of the statement if you are not sure how to balance the account. Sometimes it helps to check off each item in your checkbook and on your statement as you match them up. Put the reconciled statements in a file folder or binder labeled by name of the account.

PAYING EVERYONE OFF

Write checks for the bills and update your EXPENSE PROJECTIONS on items that vary from month to month. Keeping this information current allows you to have a better idea of what to expect. This is better than a typical "budget," because the amounts are based on what you have actually spent each month.

FILING IT ALL AWAY

Create a file folder for each MONTH of the year -- be sure to label each folder with the month and the year. Or if you prefer to keep certain accounts separated, label the folder by the name of the particular account. Collect the bill stubs and sales slips and put in appropriate folder -- either by month or account. File in the same drawer as the bank statements.

DOUBLE CHECKING

Review insurance and investment notices, noting any CHANGES or transactions. Premiums have a way of increasing over time and investments can often rise and fall dramatically. You don't know what decisions to make about your accounts if you never look at the statements.

PREPARING FOR APRIL 15th

Create a separate file folder for the bill stubs, canceled checks and any other documentation needed to support your TAX RETURN if you itemize your tax returns. File it anyway if you are not sure. You will gain confidence and knowledge in what to keep and what to throw away.

Remember, organization is being able to find what you want when you want it, get things done, and be in control of your life. If you are going to keep something, give it a home, label it with a common sense heading, and keep all records/folders in one location. Otherwise, feed your trash can.