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If you're like most people, your personal
financial records are most probably kept in less
than ìGood Accounting Practicesî
standards.
For example, stashing old ATM receipts and
hanging on to a stub showing what you paid for a
pack of mints two years ago (cash, of course),
might be filed with your paycheck stubs, credit
card statements ñ paid and unpaid alike
ñ as well as a few tax forms, a stray
paper clip and a penny.
Anything from an old shoebox to a toolbox would
do you for this method of personal financial
tracking but you can do better than that.
Not to worry. Here's how:
1) Plan for a few hours of ìalone
timeî with your financial records. This is
a dandy time to pack the kids off to the mall,
put up a pot of excellent coffee and a little
snack (preferably chocolate), as a treat when
you're done.
2) Supply yourself with ample space, such as a
large dining room table. Make sure you have
enough organizing supplies close at hand: sticky
notes, file folders, a tub to hold them with
hanging file folders, large envelopes, a check
file, ring binder/s and a three-hole punch if
you like, an open stacking file, and an
organizer/sorter. A trash can by your side is a
must.
3) Get everything from everyplace ñ shoe
boxes, check files, file folders, etc.
4) While enjoying your cup of coffee, make a
game plan. Decide what you're going to put
where: e.g., checks and statements go in a
specific file for checks and statements, credit
card statements can be unfolded and placed in a
file folder, etc.
5) Start sorting on the table. Checks go here,
ATM receipts go there, paycheck stubs go over
there, paid bills go on the other side, etc.
until all the ìstuffî is divided
into neatly organized piles. Use sticky notes to
mark what-goes-where on the table to avoid
confusion.
6) Put all the ìpaidî items away
first. Be ruthless ñ it's perfectly okay
to toss the receipt for those mints from two
years ago.
7) Put the rest of the inactive items in the
envelopes, file folders, check files or other
storage devices as are interesting, functional,
and readily available from your local office
supply store.
8) Have another cup of coffee and tackle the
active, or open, items. Decide what you're going
to pay and when. If you have an open stacking
file, you will find one with four compartments
(one for each week of the month), very handy for
this purpose.
9) Balance your checkbook. Now.
10) Enjoy your chocolate after putting
everything away where it belongs and, oh, by the
way, check the calendar for when you'll be doing
this again next month.
Of course, next month this will all be done much
faster.
I highly recommend using technology to make this
much easier and faster. Programs like Quicken
and Microsoft Money will help. Really any
spreadsheet program will do.
Have a category for each life area you spend
money. Once a week or month take your receipts,
checkbook records and scribbled notes and record
where you spent ALL your money....every penny.
One of my students was shocked to find out he
was spending $75 per month on orange juice!
Legend has it that the Rockefeller boys kept
track of all their spending and they turned out
alright.
This time next year you'll wish you started
today.
About the Author
Leo J. Quinn, Jr. owner of www.LeoQuinn.com
is a financial educator from the Albany, NY
area. For over eight years he has been helping
thousands of people get control of their
finances and get out of debt in a fraction of
the normal time. He has a special offer for
readers of this newsletter at
http://www.1shoppingcart.com/app/adtrack.asp?AdID=132551
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