| LOOK AT IT ALL!AND I MEAN ALL OF IT: Before | | | | been doing lately to make my family's financial |
| you can make change, you need to take stock of | | | | situation far more organized:a. Getting it all |
| your financial situation. This includes bills (one time | | | | together. I'm a teacher; therefore, I spend a lot |
| and recurring); debt (list each and every credit | | | | of time during the school year avoiding my |
| card, its balance, its interest and the monthly | | | | personal mail, etc., and just paying my bills once a |
| minimum that is required as well as the amount | | | | month on-line. I rarely look at actual due dates |
| you usually pay); the savings (bank accounts and | | | | (making our credit situation not so pretty) and |
| regular savings wherever they may be; IRAs, | | | | often end up paying late fines. My major project |
| 401(k)s, other retirement plans etc.), and all of | | | | this summer is two-fold: getting a handle on our |
| your assets (cars are generally not an asset | | | | financial situation and de-cluttering my house to |
| unless you owe less than they are worth). Write | | | | make it look nicer and be easier to live in. How |
| it all down so you can see where you stand. This | | | | am I doing that? I once got a great piece of |
| is truly the first step that must be taken before | | | | advice that is perfect for tasks that are tedious |
| you can do anything to take control over your | | | | or overwhelming -- require yourself to only do the |
| money.While getting control over your paperwork | | | | task for 15 minute periods. In fact, I set a timer |
| will not make you money or directly take you out | | | | for my decluttering in general including my |
| of debt, you must know what kinds of problems | | | | paperwork. I tend to spend well more than 15 |
| you are facing in order to pull yourself out. There | | | | minutes on the task; however, the timer makes it |
| are a few basic products that have helped me to | | | | seem like it's no big deal: anybody can do almost |
| get my finances organized and to maintain that | | | | anything for only 15 minutes, right.b. My first job |
| organization. The first is just a simple spiral | | | | was to clear off a table of accumulated |
| notebook. This book goes almost everywhere | | | | paperwork and to find every statement for |
| with me and helps me to keep track of ideas or | | | | everything we pay bills on - once I got rid of a |
| spending during the course of the day. It was | | | | great deal of the stuff we had no need for, |
| where I decided to make my first list of all my | | | | (mostly in the shredder), I was just randomly |
| expenses, debts, savings and assets. A simple | | | | putting the rest into a "to deal with" mail holder, |
| pen and paper list is sometimes the easiest way | | | | which, itself, became a clutter keeper. So, I went |
| to get started. In fact, when I started, I guessed | | | | through that with my file boxes & my notebook |
| at everything: I made the list as I went along, | | | | sitting on my dining room table and dealt with it. |
| first from my head and then by looking at my | | | | The best advice for paperwork is to touch it |
| bank statements. Another way to make the list is | | | | once. I'm happy right now touching it twice: once |
| to make it ongoing for a month (although I don't | | | | when I open it, and, sometimes, later, when I deal |
| think you should wait so long to take control over | | | | with it again. (I am looking into a better set up of |
| your finances).But the point is that you want to | | | | my home office so that the files can be easily |
| create an accurate financial list of each and every | | | | accessed and I can really only touch once.)c. I |
| bill that you have: the total debt, the monthly | | | | then put it all into my spiral notebook as I found it: |
| minimum, etc. And, whether this can be done | | | | debts, starting with the mortgage, the home |
| today or over the course of the month, you | | | | equity line of credit, the cars and student loans |
| need to get it done because you cannot solve | | | | and moved down to regular credit cards and |
| your problems if you do not know what exactly | | | | store cards. Each debt got the same notes: Total |
| they are. When that list is complete, believe me | | | | amount left, interest rate, monthly payments, and |
| you will be shocked. You will be shocked at how | | | | "minimum payments." I also wrote down the |
| much you didn't realize about your debt: its total, | | | | other monthly expenses that may or may not |
| its monthly expense; how much you are paying in | | | | have been "discretionary" -- it took me a while to |
| finance charges (the amount you are paying just | | | | figure out all of them, as my statements came in, |
| to have used the money). You will start to | | | | I could find a lot of what I was looking for. Thus, |
| understand why money always feels tight: | | | | we had utilities and services, groceries, newspaper |
| because it is. Your monthly debt payments may | | | | delivery, water delivery, home care, books, |
| be eating up so much of your take home pay, | | | | magazines, lessons, the exterminator, gas, |
| that you don't have the money left over to pay | | | | cleaning, allowance, commuting, etc. It was great |
| your everyday expenses, let alone all the extras | | | | to look at it on a page and see how much money |
| that we like to have in life. You might also be | | | | we spend a month and how much interest we |
| pleasantly surprised about a few things: some bills | | | | pay a month, a year, a life time. It was a true |
| that can be eliminated quickly, or debts that are | | | | "AHA" moment, and life has been very different |
| coming to an end. If you've had 401k's from | | | | since that time. As I paid the bills that month, I |
| different jobs and haven't paid attention to them, | | | | put a running list in my spiral notebook -- new |
| or never added them together, you may find that | | | | balances and amounts paid.d. Then, I put all of the |
| you have a bit more saved for retirement than | | | | information into Quicken as I explained above. I |
| you anticipated. But, you need the list of all your | | | | may have a few accounts that are not yet set |
| debts and all your savings in order to take control | | | | up; I have been taking the statements as they |
| over your money.The second product I am going | | | | come in and creating a Quicken account from |
| to recommend is financial tracking software. I | | | | those statements. The next step is to create a |
| have begun using Quicken 2007 , and what I love | | | | Quicken cash account.e. It was that process that |
| about that program is that it allows me to get an | | | | led me to realize that we were going to be in dire |
| even more accurate picture of my finances | | | | financial straits if we did not take control over our |
| because I can categorize every expense: thus, I | | | | financial situation and soon. That is what led to the |
| can go in and figure out how much money I | | | | steps we have taken since organizing and the |
| spent last month in finance charges, or for | | | | ideas we have generated. Ultimately, it also led |
| groceries (if I paid with a card of some kind). It | | | | me to create this site as both a source of |
| allows you to download the information, saving | | | | accountability and a source for others for advice.f. |
| you time; however, I prefer to put everything in | | | | I am now in the process of figuring out how we |
| by hand: it keeps me far more aware of the | | | | are doing since we have starting taking control |
| various ways I spend money. For me, Quicken | | | | over money.D.Fielding |
| has been amazing: I downloaded it and within a | | | | website is about my family's struggle to gain |
| week had almost every account we have on it. | | | | control over our money: organizing it all and then |
| I've probably spent 10 hours on it in total: there | | | | figuring out what to do about the spending, |
| was virtually no learning curve, every moment I | | | | savings, investing, and, most importantly, debt. |
| have spent on it has been spent keying in | | | | Other than the article above, you can rid about |
| information. I am adding a new feature that I will | | | | many of our techniques and tactics, information I |
| need: a cash tracking account; after I do so, I'll be | | | | have learned and resources to help yourself |
| able to have an even better picture of where we | | | | better manage your finances. Our goal is to get |
| spend our money.The third product that I have | | | | out of debt and enjoy our money in ways that |
| found extremely helpful is an excellent filing | | | | are valuable to us and not wasteful. We have |
| system. It is not an actual set of files, but rather | | | | begun that journey by taking a number of steps |
| a file system for the home that has pre-made | | | | that we discuss in the website.You should find the |
| categories in it. It takes about two hours to set | | | | site interesting. I am frequently updating it |
| up (and, you need to order or buy the files | | | | because I am using it to force me to maintain all |
| themselves), but once it is set up, it makes your | | | | of the hard work we have done and to keep |
| filing easy to accomplish and easy to handle. It is | | | | learning so that I can teach others. In my career, |
| called File Solutions and can be ordered directly | | | | I teach Social Studies to High School students; |
| from the company, (I have absolutely no affiliation | | | | thus, it is natural for me to always be learning and |
| to this company, I just use the product and love | | | | always be sharing what it is I have learned with |
| it).If you are finding it difficult to get your finances | | | | others. If you come by, be sure to let me know |
| organized so that you can take a good, hard look | | | | how you like the site.Thanks, Mrs. F. |
| at them, you are not alone. Here is what I have | | | | |