Debt Management
(Keep all your Papers Fully Organized)
Table
of Contents
Introduction
Chapter 1: Keep all your Papers Fully
Organized
Chapter 2: Learn Money Management Tactics to
Stay on Schedule
Chapter 3: Check Your Statements Regularly
Chapter 4: Save Time and Use Automatic Payment
Methods
Chapter 5: Computerize
Chapter 6: Direct Deposit
Chapter 7: How and Why to Acquire Overdraft
Protection?
Chapter 8: Dump all your Unused Accounts
Chapter 9: Institute Automatic Savings
Conclusion
Introduction
Whether you are married or
single, taking charge of your overall finances may feel like a part-time
job. Some easy ideas can help you
streamline your time, organize your finances, and reduce the stress of debt and
overall money matters.
Debt Management
Chapter 1:
Keep all your Papers Fully Organized
Synopsis
When the
mail arrives, make certain it goes in one place. Lost bills can be the cause of uninvited late
fees and may damage your credit rating.
Whether it’s a drawer, a box, or a file, be ordered and make certain
other people in the household do the same.
Size is likewise important. If
you get a lot of mail, utilize an area that won’t get filled up too fast.
Make It Neat
Your bills come every month whether
you wish them to or not. Setting them in a cubby hole somewhere and dealing
with them later may lead you to draw a blank about their maturity date. When
this occurs you wind up being forced to pay a late fee. If you're willing to
get organized, you are able to get your bills paid on time and never have to
fret about incurring a late fee. This might take a little bit of time to set
up, but only a couple of extra minutes per week to sustain.
Make sure you open your bills. A lot
of bills come with unneeded inserts that just take up room in the place where
you store your bills. Take out any inserts and recycle them with the outer
envelope at once. This keeps clutter from stacking up and taking your focus off
of the bill itself. Now take the bill and put it under the fold of the return
envelope.
You are able to label 4 plastic bins
so that each one makes up a week of the month. You are able to simply label
them "Week 1," "Week 2," "Week 3," and "Week
4." Now take your prepared bills and find out the maturity date. If the maturity
date is the 8th of the month, the bill goes in the week 2 bin. If the maturity
date is the twentieth, the bill goes in the bin for week 3.
Do this with all of your bills and
then place the bins on top of one another in order. When week 1 rolls around,
take your bills out and pay them. Then put the bin on the bottom of the pile so
that the week 2 bills are ready for you the next week.
Finally once your bills are paid, you
nevertheless have your financial statements to deal with. You want to keep them
coordinated as well so that you are able to quickly locate them if you need to.
Buy a thirteen pocket file folder.
Mark the first twelve pockets with the calendar months of the year. The last
pocket can be marked "taxes." Place your monthly financial statements
into the pocket for that certain month.
When the year is complete, you are
able to label the file folder with the year on the front and store it just in
case you ever get audited.
Chapter 2:
Learn Money Management Tactics to Stay on Schedule
Synopsis
Bill paying
may be simplified if it’s done at scheduled times during the month as we
discussed. Depending upon how many bills
you get, you are able to establish set times monthly so none of your bills will
be late. If you’re paying bills as you
receive them, chances are you’re spending a bit much time in front of the
checkbook. Although bills might say
“Payable Upon Receipt”, there’s always a grace period. Call the creditor to discover when they need
to get payment before the bill is considered late and use these tips.
Keep Up
Wouldn’t matters just be more
comfortable if everybody had an accountant to handle all the financial matters
in his life? For those who can not
afford to maintain an accountant on retainer, you need to answer as your own
accountant and discover how to supervise your money, where it goes, and what
it’s for.
Here are a few ideas to help you if
you’re a tad bit uncertain how to go about addressing the money matters.
As previously stated, organize. It is
all-important for your bills and receipts to be organized and in order. This is
because you may wind up paying the incorrect amounts and losing track of your
list of costs.
As stated in chapter 1, one way to go
about doing this would be to keep a bin or a file folder of each week that a
bill is due, and keep the receipts filed also. Let’s suppose you pay for water,
electricity and cable television monthly. Put them all in their respective bins
according to due date, which should be updated every time you open your bills.
Make sure you appropriate funds every
payday. On payday, head toward your stack of bins and figure out the revenue
you need to reserve for each bill that you have to pay. Make this your top
priority. Then set aside a particular amount every payday, which should go to a
savings account. The remainder would now be your pocket money, or your
so-called disposable income.
Pay for bills online or consolidate
bill payments. Acquaint yourself with how to pay for your bills online. A few
banks and financial institutions actually let you consolidate your bills into
merely one payment. Not only will this save you the time and energy, but it
would likewise be a beneficial way for you to track your bills, as you'll be
able to see a record of all the payments you've made. Don’t blow your time any
longer by going to the physical building and paying each bill over the counter.
It would be easier and much more efficient for you if you are able to do it
from the comfort of your own home or office.
You can always discuss your monthly
bills with your loved ones, if needed. If for a certain month, you notice that
your water bill is exceptionally higher than the former months, advise your
family members to attempt to save on consumption. If you're open with your
loved ones about this, they'll better value money and finances, and they may
begin helping out through simple ways, like unplugging appliances when not in
use.
Make sure you review your bills from
time to time. Make certain that you don’t miss out on any payments to prevent
penalty charges, and to prevent messing up your budget. Begin with a fresh
start every month without any leftover accounts payable, so your bills don't pile
up.
The magic to managing your finances
and paying bills on time is prioritization and organization. Sure, everybody
wants to purchase the newest car, gadget, clothes, or jewelry. But, bills are a
fact of life. Rent payments are a fact of life. Mortgage payments are a fact of
life. You need to be able to see where your money goes, and be organized enough
to know how much should be spent for any certain things and how much is left
over.
Chapter 3:
Check Your Statements Regularly
Synopsis
Most individuals capitalize on low interest
charge card offers but never read their statements when paying the bill. Charge cards are notorious for utilizing low
interest as bait for fresh clients then switching to higher rates after a
couple of months. Make a habit of
looking at your statement cautiously to see what rate of interest you're paying
monthly and if any transaction fees have been applied. If the rate increases or a transaction fee
shows up on your statement, a simple call to the charge card company can often
be beneficial in resolving the matter.
If not, try to swap your money to a more positive rate.
Understand It
Paying delinquent interest on your
charge card monthly can total up to an immense sum at the end of the year, that
is, if you are able to track your payments. It may be frustrating to forever
keep looking for charge card bills that you know came in the mail but can't
remember where you put them precisely. Before you know it, you'll either make
another late payment or worse, altogether forget to pay them. To obtain savings
and increase your credit rating, it will take some effort on your part to
organize and keep a record of your charge card bills and payments.
Make sure you look at all your charge
cards and make a list of them. Next gather all your charge card bills. Look at
the statements and check the dates when the payments are owed. List each date
beside your charge card list and use the bin method in chapter 1. This way
you'll know which charge card bills you are able to expect in a billing cycle
and make a schedule later.
Put your charge card bills into
separate bins so you that you can't miss seeing them. Place a stapler, paper
clips and pens close to where you keep the bins or file folders.
Make sure you keep a small basket or
box where you are able to drop all your receipts each time you shop. Make
certain that you regularly place all your receipts in this container. At the
end of the week, make it a habit to go through all your purchase receipts and
sort them in separate files per charge card. Clip them together for easier
management and access.
When a charge card bill comes in,
check the statement. Compare the itemized list of purchases that you've made
against all the receipts that you have saved and separated. This will help you
to keep track of your purchases, the amount you paid against what is reflected
in your charge card bill and make complaints if you discover discrepancies,
whether in your purchases or payments. See to it that you check each charge
card bill as soon as it comes in and that the bill is always in the correct bin
for timely payment.
Attach the receipts to each
statement. Write the word “PAID” and a date on those bills that you've paid.
You might have to do this a couple of times if you are able to only manage to
pay the lower limit.
Alternate the utilization of your
charge cards based on their billing cycles. This way you don't get deluged with
several statements in the middle and end of the month.
Make a little record, either on paper
or do one utilizing a spreadsheet. Label each column with the charge card name,
the total balance, the due date, the lower limit payment, the amount you paid
off, the current balance and when you paid them. Place this with your bins or
folders and regularly cross off those that you've paid in full. You are able to
then anticipate what is due and see those that you've paid fully.
Organizing your charge card bills
will keep your regular payments on track, exempting you from worry and giving
you some savings. Keep all your charge card bills for at least one year, for
audit and quick reference to check purchases and payments. You might find that
some charge cards have outrageous surcharges and are worth canceling.
Chapter 4:
Save Time and Use
Automatic Payment Methods
Synopsis
Many banks
offer a way to automatically subtract money from your account to pay
creditors. Additionally, the creditors
commonly offer a lower rate of interest when you sign on for this payment
choice as they get their money faster and not late. Think about it as one fewer check to write,
envelope to lick and stamp to purchase.
Just make certain you record the subtraction when the automatic payment
is scheduled or you run the risk of bouncing other checks.
Pay Online
Online bill pay may help you manage
your bills without being forced to worry about paper bills and checks. We will
cover the various types of online bill pay and how you are able to set up
online bill pay fast and easy. Once you're up and running, you are able to
spend more time on the fun things in life.
First we’ll want to make certain we
know what type of online bill pay you truly have available.
Respective different services are
described as online bill pay:
Ø Online bill pay provided by your bank
Ø Online bill pay provided by your
service providers (phone company, mortgage company, and so forth)
The beginning type of online bill pay
(online bill pay provided by your bank) is a service that sends off money out
of your bank account to whomever you wish. In a few cases these online bill pay
services will in reality print a check and mail it to the recipient. If the
company you prefer to send payments to is setup inside the banks system, the
bank will merely transfer the money electronically when you utilize online bill
pay.
To establish this type of online bill
pay you’ll likely just need a copy of the bill that your service provider sends
out to you. Establish a new payee in the name of that company at your online
bill pay site. Copy the address and your account number, and enter that data
likewise. Each time you would like to pay you’ll just put in the amount of the
bill and you’re done. The bank will print and mail a check that will pull
revenue from your account.
To be secure, you should countercheck
with the payees if they have particular instructions for receiving payments
thru online bill pay. Some payees won't recognize the check (as it was printed
by the online bill pay service). In this case, they might give you an alternate
address or other directions.
The 2nd type of online bill pay
(online bill pay provided by your service providers) is a service that will
only let you pay one company – like your phone service for instance.
To establish online bill pay with the
telephone company, you’ll need to furnish the company a voided check and one or
two forms and authorizations. The procedure is really similar to direct deposit
but they call it online bill pay or ACH debit.
When you've set things up, you are
able to pay your bill without being forced to use paper checks or the mail.
Automatic Bill Pay Online
If you truly like to automate matters
so that you don’t have to think about them, you are able to automate online
bill pay. Virtually all online bill pay services will let you establish
recurring payments. For instance, you are able to have the online bill pay
service attend to your phone bill each month or your insurance quarterly.
A different way you are able to let
online bill pay keep going on auto-pilot is to let your service providers pull
money out of your account without you being forced to click anyplace. Put
differently, the service supplier just “asks” the online bill pay company for
payment and the payment is made with no activity on your part. If you authorize
these forms of payments, make certain you've a good handle on your budget and
usable funds.
Online bill pay may truly make your
life easier. Once you set it up, you are able to reduce lost payments and the
quantity of time you spend shuffling papers.
Chapter 5:
Computerize
Synopsis
Utilizing a
software program is a convenient way to organize your finances. Whether it’s Quicken®, Microsoft Money® or a
different package, these simple -to- utilize programs make bill paying and bank
reconciliation a breeze. Computer checks
may be ordered almost anyplace and fit right into most printers. Once the checks are printed, all of the data
is automatically recorded in your electronic checkbook. Moreover, many banks have direct downloads
into these software packages so when money is deposited or drawn off, the
transaction is entered directly onto your computer. And, when it comes time to do taxes, it
couldn’t be simpler.
Quicken
The reason a lot of individuals
decide to purchase a computer is to more adeptly organize their personal
finances or even execute a small business. Quicken not only organizes your
checking account but it helps you pay bills, keep track of tax write-offs and
develop budgets, financial statements and reports.
Quicken for Windows capitalizes on
the Windows user-friendly environment. In Quicken, users may trigger the
Activities menu to produce new accounts, write checks, pay charge card bills,
update balances, establish budgets, create registers or activate an on-screen
calculator. With Quicken you are able to print checks utilizing your computer's
printer or use electronic payment to automatically send payments using your
computer, modem and phone line.
When you first establish a Quicken
bank account you'll discover yourself in the Register window where all
transactions are registered. These transactions include hand written checks or
printed by computer, ATM transactions, deposits, account fees and interest and
service charges.
When producing a Quicken bank
account, the Register window acts as a check register like your paper check
register. When you record a check in Write Checks, it shows up in the check
register and becomes a lasting part of your records. Your balance is updated
automatically. Just state what it's for, telephone bill, foodstuffs, piano
lessons, charity, whatever and then you are able to produce reports showing
precisely where your money goes. Once you get your monthly bank statement, you
are able to quickly reconcile it with your Quicken check register.
The Quicken charge card register
enables you to computerize your charge card records. It can likewise help you
keep track of your investitures in stocks, bonds, mutual funds and additional
investments that waver in price. However this is an advanced feature so take
your time to learn it.
Categories are a different handy
characteristic. A category is a label that you are able to put on a transaction
that helps you track how much you're spending on certain items. For home users,
you may have expense classes like food, mortgage, medical fees, utilities and
so forth. Your revenue categories may include items like salary, bonuses,
maternity leave pay and so forth.
By categorizing transactions you are
able to make a report that totals all tax-related income and expenses by class
for every month in a year. Some reports are particularly designed to sort and
tally transactions by classes. For instance, you are able to track how much you
spend monthly on food or, if you're a small business, you are able to discover
what your top 3 sources of revenue are. Category names, which you establish
before entering transactions or as you enter, may be very particular or general.
You are able to even categorize every transaction if you want.
You can use pre-formatted reports.
These reports may help you analyze your finances in detail. You are able to
produce reports that show your spending, budget, tax-deductible expenses, cash
flow, accounts payable and so forth.
Stored transactions are among the
most useful timesavers. Quicken can memorize any repeating checks or additional
transactions like mortgage payments, utility bills, payroll deposits and
electronic payments to send. When you prefer to enter a memorized transaction,
just tell Quicken which one you require and it enters it into the register for
you.
The CheckFree feature lets you send
payment instructions to CheckFree thru modem. Then CheckFree sends the payment
to any person, organization or corporation in the U.S. per your request. To pay
for bills you start by entering an electronic payment transaction, very much
like entering a paper check in the Write Checks or Register window. You are
able to also write payroll checks for business use.
As you are able to see, Quicken comes
in handy. It supplies you with easy-to-use tools for computerizing your check
book, budget, charge card records, investments and much more. There are several
programs available out there... this one was just used a basic example of how
the programs work.
Chapter 6:
Direct Deposit
Synopsis
Many
employers have direct deposit or are catching on. Even Unemployment Compensation provides
direct deposit as a choice to receive benefit checks. On payday, the amount of your paycheck
arrives in your account and is promptly available.
Directly
In The Bank
Direct deposit enables you to handily
move money electronically without mailing or signing any checks over to the
bank. With direct deposit, your money seems to get to your account faster. When
you utilize it for your paycheck, you won’t have to go to the bank to cash or
deposit your paycheck ever again.
Here’s how to establish direct
deposit:
Get hold of the originator of the
payment. For instance, if you want your paycheck to be direct deposited, get
hold of the Human Resources or the Payroll department of your company. The
United States Government offers direct deposit for Social Security payments and
tax refunds; get hold of them directly about this service. A few investment and
insurance payments might also be directly deposited. Get hold of whoever will
be paying you to ask about direct deposit.
Next complete a direct deposit form.
This ought to be provided by the organization or person that is paying you.
You’ll need your bank’s routing number, which is published on your checks or
can be gotten from your bank. It might also be called an ABA number or a
‘routing transit’ number, and is a singular identifier for your certain bank.
You’ll in addition need your account number, which describes your certain
account at that certain bank. You are able to have the funds set up to direct
deposit into your regular checking or savings account, or establish a special
account for these funds. Finally, the form might require the physical address
of the bank to which payment ought to be sent, even though it will be sent out
electronically. Additional required info might include your name, address,
telephone number, or social security number.
Now you send off the form to the
payor. Send this form back to the organization or person that will be paying
you. A few in addition call for a voided check to verify that your routing
number and bank account number is right. Make certain to clearly mark this
check as VOID prior to sending it. A few companies might also be set up to take
this data online or over the phone.
Direct deposit is a handy way to get
your money. With just a couple of short forms, you are able to wipe out a lot
of paperwork and fuss later on. You'll never lose a paycheck or unintentionally
wash it in your pants pocket again, as there are no paper checks to be lost or
stolen. The payments will be in your account without you having to make a trip
to the bank to deposit the check.
It generally takes a couple of weeks
to institute and is well worth the wait.
All the same, you still should get a payment stub from your employer or
person paying you, listing the itemized deductions for that period or the
amount and intention of the check.
Chapter 7:
How and Why to Acquire
Overdraft Protection?
Synopsis
Many banks
have a service where, if you run the chance of bouncing a check, the money will
come from a different source. For a
token fee, the bank will link your checking account to a savings, money market,
or charge card so the plethora of bouncing a check will be avoided.
Protection
It only takes a moment or two to
maintain the serenity that overdraft coverage can provide.
You should know however that
beginning soon, banks and credit unions will no longer be allowed to bill
overdraft fees unless clients sign up for the service. Do nothing, and you may
have a purchase declined at the register. On the other hand, you will not find
yourself burdened with unforeseen fees.
With fee - founded overdraft
services, your bank will back you when a debit card buy or ATM withdrawal goes
past the sum of money in your current account. Banks state this service saves
clients from embarrassment and allows for a quick source of emergency money.
However the price of saving your dignity can be high. As most banks bill a flat
fee for overdrafts, a $2 overdraft for a cup of coffee may cost you $35. And
once you've passed your limit, every buy you do might have a fee.
In the past, a lot of banks
automatically listed clients in overdraft coverage. But under fresh federal
rules, beginning July 1, banks will be expected to get new customers'
permission prior to charging fees to back ATM and debit card overdrafts.
Beginning Aug. 15, they will be banned from billing overdraft fees to existing
clients unless they choose the service.
You should know that, there are
other, less-costly means to avoid having your debit card declined at the
supermarket, including:
Ø Associate your checking account to a
savings account. A lot of banks and credit unions provide this service for
clients who have savings accounts. If you overdraw your checking account,
revenue in your savings account is applied to cover the transaction. Banks
commonly charge a fee to shift the money, but it's commonly $5 to $10 — a good
deal lower than the fee billed by standard overdraft service programs.
Ø Associate your account to a charge
card. In this case, an advance from your charge card will be utilized to cover
the overdraft. You'll pay interest — and the rate for charge card advances is
commonly higher than the rate for purchases — However if you pay the balance
off fast, you'll likely still pay less than you'd give in overdraft fees.
Ø Establish an overdraft credit line
with your bank or credit union. You'll need to apply for a credit line, and
clients with mediocre credit might not qualify. However if you're eligible,
this may provide a much less expensive sort of overdraft protection than
fee-based coverage.
Ø Establish low-balance alarms.
Knowledge is the most efficient means to protect yourself against overdrafts. A
lot of financial institutions will send you an e-mail or text once your balance
arrives at the danger zone.
Instead, regularly monitoring your
checking account will help you prevent spending money you don't have. You might
want to set up an online account and review it daily. That sort of examination
will bring you face to face with the realism of your spending.
Chapter 8:
Dump all your Unused Accounts
Synopsis
Whether
it’s a charge card or bank account, write a letter calling for the account to
be formally closed. Not only will this
better your credit score, it's a useful way to prevent money from being
scattered all over the place. Don’t let
department stores and charge card companies lure you into opening fresh
accounts by offering positive interest rates and purchase discounts. It’s simple for credit to get out of control
by taking every credit offer that comes along.
Cancel It
You would like to cancel your charge
card. Before you gather up your scissors, know this: Canceling a charge card
correctly involves more than simply clipping it in two. It calls for you
following some necessary steps.
You need to know that depending upon
your total available credit, closing an account may hurt your credit score. To
close card accounts without affecting one's credit score, you need only have
"0" balances on your credit report for all of your active charge
cards. That's because if you have "0" balances your credit use rate
is therefore "0", and you can't raise it and possibly harm your score
by closing one or more of the active charge accounts.
As well, the age of a charge card
account is likewise worth considering. The time an account has been open is an
element in credit scores. A longer positive account is beneficial to credit
scores. So, ending an older account in essence may have a more damaging impact.
Closing an account the correct way
takes time, patience and organization. But it's crucial to be thorough in order
to cancel your charge card properly.
To start the process of closing the
account, accumulate and write down the customer service number and the mailing
address you'll require. The 800 number is on your charge card, monthly
statement and the issuer's site; the mailing address is likewise on the site
and the monthly statement.
Closing a charge card that has a
balance might not be the brightest thing to do. If you inform the card issuer
that you're entertaining leaving, the lender may raise rates of interest on the
owed balance. So pay off your charge card fully before you let the card issuer
know you're leaving. Or, if you've been burned by a rate increase and you are
able to find a balance transfer charge card with a better deal, shift the
balance.
Once you get hold of the bank's
customer service representative, begin by confirming that the balance on your
charge card is "0". Don't assume that the balance is zero because you
paid the full amount on your charge card bill. Interest stays on to accumulate
between the time the issuer sent off the bill and when they got your check.
When you're sure the balance is
"0", inform them that you're canceling the card. Although a few
charge card companies will let you cancel without even talking to a
representative, others might be less accommodating. Be prepared to have the
customer service rep attempt and talk you out of closing your account. They'll
be very convincing, so if this is what you chose, then tell them courteously
once again by letting them know you wish the account closed at once.
For added confidence (just in case
the customer service rep makes an error), write a short cancellation letter to
the card issuer, addressed to the name provided. Request written verification
of the account's closure. This is a must and is to be done in alignment with
the telephone call. The letter ought to include your name, address, number and
account number, and particulars from your earlier telephone call. Likewise,
state that you wish your credit report to reflect that the account was
"closed at the consumer's request."
Being additionally cautious isn't a
bad thing. Enfolded with the letter, include the check number (or a copy of the
canceled check or additional payment confirmation) that you used to pay for
your account balance, as well as the date the check cleared your bank. Create a
copy of the letter for your records. In addition, you are able to place your
demolished charge card in the envelope with the letter. Send the letter thru
certified mail or return receipt requested so you are able to prove the company
got your letter.
Then you wait. Getting the card
canceled might take a month or more, as a charge card issuer is a "big
bureaucracy,”. After that time, have a look at a copy of your credit report to
make certain the account is marked as "closed" on your credit report.
If the account seems open, duplicate the process.
As you carry out the process of
canceling your charge card, you might want to keep thorough notes on who you
talked to, what they stated and when. That way, if anything fails, you'll have
all the facts recorded. Once you get a return receipt from your certified mail,
keep it with the log you're keeping and note the date the receipt comes in.
Chapter 9:
Institute Automatic Savings
Synopsis
Make a link
from your checking account into a savings account that won't be touched. This may usually be done through the banks
and automatic amounts will be transferred over every month. Most individuals won't put money into a
savings account on a regular basis. They
might wait till a large tax refund check arrives or another event to actually
deposit money into savings, retirement, vacation, college, or additional
accounts. If you institute an automatic
savings deposit monthly, your accounts will start accumulating faster than you
think.
Save Automatically
Do you have a savings account; all
the same find it hard to find money to put into it? This isn’t a rare problem
and many individuals find it grueling to save. By and large when you receive
income it's either straight off deposited into your checking account or you go
to the bank to prepare a deposit. Generally these funds head straight to the
checking account so they're available to pay for the seemingly perpetual flow
of bills.
Many individuals save money as a
second thought. When they get revenue the money is apportioned to bills,
foodstuffs, rent or a mortgage or daily expenses among additional things. The
only time supplying money to savings is when there is revenue left over.
Regrettably with this backwards thinking there is just about never any revenue
left over to save.
Once deposits are made into a savings
account automatically and on a regular basis you don’t have to think about it
and the revenue is deposited prior to you having time to worry about expenses
or how much money will be left over.
Thanks to innovative technology it is
really simple to set up an automatic savings plan. If you presently have direct
deposit through your employer or some other form of revenue you will find the
most comfortable way to establish this is to have part of your money directly
deposited into your savings account as well. It does not matter if it is ten
dollars or five hundred dollars, merely having this happen automatically will
guarantee money is saved every time you are paid.
If you do not have direct deposit
there is still a simple option available if you do your banking at a local
branch. Commonly your bank may link checking and saving accounts together and
constitute automated transfers between accounts at a regular time interval that
you select.
So if you cash your paycheck every
other Friday, or receive other funds on a regular basis you may establish an
automatic transfer of a set sum of money from checking to savings to co-occur
with this deposit.
Wrapping
Up
It all boils down to being organized
and making smart decisions. Make certain your paid bills are organized in a
container of some sort away from the rest of the house. Keep files for paid
bills. Go through your files at the end of every year and throw away bills and
receipts no longer needed for auditing purposes. Get hold of your local IRS
office to see how long records need to be kept for audits. Generally federal tax return audits can be
done 3 years back but cancelled checks might need to be kept for seven. Consult the Internet for auditing and
records-keeping procedures for your state or region.
Follow the tips here and you will be
well on your way to organizing your finances.
