F is for Finances!
Money, we love it – we hate it!
Money
Makes The World Go Around
Let me be very clear
that I am no money professional and the best way to ensure that you are making
sound financial decision is to check with your investment professionals and
money managers. That being said – here are
a few tricks I have learned over the years…most have been learned the hard way.
It is impossible to
discuss organizing without mentioning finances. They go together like Peanut Butter and Jam. If bill cannot be found, payments will be
late. Late payments could result in:
- Late penalty fees,
- Utilities being turned off,
- Damage to credit ratings
Disorganization
makes it difficult to know what money we actually have.
When a bill comes in
the door it is extremely important to have one location to file it until bill
payment day comes – pssstt, write the due
date on the calendar. Put the bill
in a “TO PAY” file. Once the bill has
been paid, make note on the calendar and on the bill itself, write the cheque
number or authorization number on the page, note the date and the amount and
file it right away in the correct folder. Eliminating clutter by filing bills
as soon as they have been paid results in a payoff in the battle against a
filing backlog and piles of clutter.
Stream line as many of
your bills as possible by having electronic billing and paying online. Open a file folder in your email program to store the bills in once they have been paid.
If you do not yet have
a Will – this is the foundation upon which your financial house is built. Don’t delay in taking care of this piece, it
does not cost as much as one would think.
Where
Does It All Go?
Knowing exactly where
is our money goes is essential to sound money management practices. Track your expenses.
MORTGAGE AND RENT
Some are fixed expenses
that we have little control over such as:
Mortgage or
Apartment rental fees.
Calling the bank to ensure
that we have achieved the best interest rate available on the mortgage or if renting; talk to your landlord about reducing your
rent by a small percentage – 10% in your pockets can be a huge savings – the
worst they can say is “no”. This will
likely be more possible in areas with a high vacancy rate
INSURANCE
Insurance is another
area where, once determining the best policies for the family, the fees are
pretty much set. Bundling all our
insurance under one company can often save us some funds.
- Home
- Auto
- Life
Having an alarm system installed in the house
could increase your home owner’s policy savings. Check with the insurance company to look for
ways to save money, they are often very willing to help. The deduction in insurance rates may be equal
to or greater than the alarm fees each month – check and see!
Before renewing
policies, call around and see if other companies can do better (schedule this
on your calendar a few month before the renewal date.)
UTILITIES
Utilities costs are spiraling and it is an area where we can have a little bit of control. Ensure that lights are turned out when
leaving rooms, at night unplug as many appliances as possible (things like
computers, televisions, and toasters still draw power even when they are not
‘on’. Changing thermostats to
programmable models and keeping the temperate a degree or two lower than normal
during the winter and a degree or two higher than normal would during the
summer – could help put dollars back in their pockets.
Telephones; many people
are giving up their “landlines” these days and simply using their cell phones
and Google Phone and Skype via their internet connections for their long
distance calls. Consider this option
carefully, perhaps it would suit the current family needs.
Install shower heads
that use less water, drop water displacement aids into the toilet tank (its
saves water when flushing) turn off the taps when brushing your teeth, don’t
leave the water running when washing dishes. Don’t waste money watering the
lawn. Your local city or municipality may even have discount coupons for showers heads, toilets, water aerators for the taps, some even provide water saving kits for free. Check out their websites.
Taxes – ugh! Ensuring taxes are paid on time and avoid
needless penalties and interest charges.
For those owing money annually, setting up automatic monthly or
bi-weekly payments for deposit into taxation accounts could be helpful in
avoiding interest charges. Most
government taxation departments have this as a payment option.
SAVINGS
Savings should be a
fixed cost for all of us. There is no
one going to step in for us in our hours of financial need – this is a basic
piece of our financial organizational foundation. The first 10% we make should go directly into
savings and it should stay there for a rainy day (no - not for a new rain coat -
nice try though, for a rainy day!) Setting up online banking to automatically
deposit money into savings accounts each pay day is the simplest way to ensure
money is being set aside. Even $25.00
per pay adds up in a year!
One of my favourite
books on money management is called Debt-Free Forever “Take Control of Your Money and Your Life by Gail Vaz-Oxlade.
It is a straight forward, often funny, look at our finances and how to
organize your money to obtain financial freedom from debt. Check with your local library for a copy – it
is definitely worth the read!
CREDIT CARDS
Most credit card
statements can be sent via email to reduce incoming paperwork. Payments to these cards can be made via
telephone or internet banking, saving both time and money but really, one of
the biggest organization issues with cards is that most of us simply have too
many! Really how many do we actually
need? ONE! Department store cards have horrific interest
rates – do not use them.
For those with a large
number of cards and departments store cards, try calling the companies and see
if the interest rates can be lowered.
Many companies will do this but climbing up the “chain of command” and
speaking to a supervisor might be required.
Some will say no, but
if even two of the company’s lower the card’s interest rate - that is money that
goes back into our pockets rather than those of the big banks! Okay so that pretty much covers most of the
bills that come in the door.
See what progress can be
made on the financial front by making a few phone calls – you could be quite
surprised at the savings! Let me know how you did.
