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A new year and a fresh start is upon us. Now is a good time to get your financial organization in shape.
Here are seven tips to bring you peace of mind
1.Fashion a filing system.
It doesn’t matter whether you use a filing cabinet, an electronic system or both. The point is to organize your documents for quick, consistent access to information.

  • For detailed information on what documents to keep and what to pitch, click HERE [LINK: http://www.moneycarevt.com/pages/HowLongNWhereFinancialPapers.pdf] to access my guide, How Long and Where to Keep Financial Papers.
  • If you keep electronic files, you can set up a separate e-mail account for receiving statements, bills and receipts. Within that account, create folders to file your documents. You want a strong password for this e-mail account and, when possible, two-step verification

2. Create a Checklist of Bills
You can use a calendar or a list. Your goal is to record every known bill and their due dates so you never miss a payment.

  • Automate recurring payments, such as utilities, to save time, worry and late fees.
  • Change the due dates on your credit cards so they better align with your cash flow and other regular bills. To request a due date change, call customer service at your credit card company.

3. Assemble a List of Subscriptions
With the number of renewal notices magazines send out months in advance, it is easy to lose track of when you actually do need to renew.

  • Include on your list the date each subscription expires. This will ensure you don’t renew too soon and don’t oversubscribe. Look for the renewal date on the address label.

4. Update & Organize Your Passwords
Experts advise a unique, 8-12 character password for each account. How do you keep track of them all?

  • Use a password manager. Search “password manager” on the internet to find reviews. Skip the paid listings and scroll down to the reviews.
  • If you write passwords down, keep them secure (i.e. not under your mouse pad).
  • Write passwords in pencil. Some companies require passwords be changed periodically. Recording passwords in pencil, which can be erased, avoids the confusion of a mishmash of crossed-out, retired passwords.
  • Group your passwords by type: financial, shopping, social media.

5. Compile a List of Accounts.
List bank accounts, brokerage and retirement accounts, and credit cards. For each entry, include account number, contact information, and the names on the account. Note who has possession of the credit and debit cards.

  • This list will help you see all your accounts in one place. Can any be closed or consolidated?

6. Craft a Budget
Budgets are a road map telling you your financial situation, adjustments you need to make, and how much money you have to make those adjustments. Budgets should be fluid and adjust with your income. Creating and then regularly monitoring a budget is the most important thing you can do to stay on top of your spending.

  • Review your budget often (i.e. compare your spending to your budget) to help you reach your financial goals. Adjust as needed, but don’t spend more than you bring in.
  • Need help? Use an app. Search “best budget apps” on the internet to find reviews.
  • There are many budgeting books from which to choose. Peruse your local bookstore to find a book you like.

7. Invest in a Shredder
You want a micro-cut shredder which chops paper into the size of rice, rendering it impossible to reassemble.

  • Shred every paper with any personal information: dates of birth, Social Security numbers, account numbers, insurance ID numbers. Shred credit card offers, old credit cards, monthly bills, receipts from credit card purchases, and anything related to taxes. Shred the back covers of catalogues with customer codes.

Many of these ideas are from the American Association of Daily Money Managers. Visit aadmm.com [LINK: http://www.aadmm.com/] to learn how a daily money manager may be able to help with your financial organization.
This blog is published to provide you with general information only, and is not intended to provide specific or comprehensive advice.  Money Care, LLC encourages individuals to seek advice from competent professionals when appropriate.


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