Lifestyle tips



5 Quick Tips for Getting Your Finances Organised

Posted in 'Organising, Tips' on June 7, 2016

Organising your financesEven the most organised person at work may still have challenges with getting their personal and household finances sorted. They may have their to do lists tweaked within an inch of their lives, but would rather take 20 kids filled with red cordial to a theme park than declutter their personal finances.

Given the end of financial year is racing up on us faster than a horde of teenagers when you say the word "pizza”, here are a few tips to get your finances prepared and organised.

1)    Sort The Shoebox of Receipts

Hands up who has a shoebox crammed to overflowing with receipts that possibly, maybe, potentially relate to your tax return?

The most expensive way to handle this is to deliver it to your accountant or bookkeeper to sort and do their thing with. It takes them hours to comb through your receipts to try and work out what is valid. They then have a few days of backwards and forwards emails or calls trying to answer questions with you. All of this work is billed in 15 minute increments at premium rates – especially during peak times of the year. Yes, it works, but there are other options.

If you are super busy and can’t tackle this yourself, you could hire a VA, temp agency admin person or personal concierge to tackle this task for you instead of your accountant.

There are even technical solutions on the market. Shoeboxed www.shoeboxed.com.au is an innovative business that has been around for a number of years. You just send your receipts away to them in one of their magic envelopes or via snapping a photo of your receipt, and they sort them out and digitise them ready for you to import into your preferred accounting software.

Whichever option you choose, now is the time to get that shoebox sorted. Handing anyone a massive shoebox in a month’s time and expecting a fast turnaround in readiness for your tax return is a recipe for voodoo dolls being created in your image. Get in now before the rush!

2)    The Bulldog Clip of Relevance

Not all receipts are tax related. Clothes, shoes, electronic games etc., all may need to be returned if they are faulty within their warranty period. For receipts for items with a shorter warranty period, just clip the receipts you may need as proof of purchase into one big bulldog clip. Every few months go through and throw out receipts that are no longer needed.

3)    Build a Bill Station

Over 25% of people admit to being late in paying a bill because they misplaced it somewhere in the home. With bills hitting us via paper, email, and BPay view, it is easy to lose track of what is due when.

Late payments create problems with your credit rating and can attract late fees. A little bit of organising can make the difference.

Set up a bill station in one part of your house. It can be a large magnetic bulldog clip on the fridge, a plastic envelope type folder (so things don’t drop out), an old fashioned spike or a ring binder. Just don’t throw your bills loose into an in-tray as they will get mixed with other things – whatever solution you choose, it needs to keep your bills together.

As a new bill comes in – print it (if it isn’t in hard copy) and add it to the bill station. Keep your bills sorted by due date, with the closest due date at the top, so you know which bill has to be paid next.

The easiest location for your bill station is right near your computer and printer. That way there is less distance for you to travel and you are more likely to add the bill to your Bill Station.

4)    Create a Mega Bills Calendar

Most fixed bills such as electricity, rates, rent/mortgage are not a surprise. They come around regularly each month or every few months.

One way to keep track of what is coming up is to create a mega bills calendar. This can be a hard copy calendar which means you need to create it each year.

The easiest solution is to simply set up your bills as a recurring event in your Outlook/Google/Other digital calendar and colour code the events with a special colour that you only use for bills.

You can build your calendar over the year as you receive your bills, or you can invest some time into building it once for the whole year by combing back through your past bills for the previous year.

Whichever way you create your bills calendar, you make your future financial years easier as you can see at a glance what bills you will be receiving and how much each bill is likely to be.

5)    Get into a Routine

Routines are essential for busy people. Carve out a set time each week or fortnight to pay bills, update your account balances, plan for the coming week, work out your budget, empty your purse of receipts, write notes and file those receipts that are tax related and shred receipts that are no longer needed. 

Link your routine to a particular event to make the habit more likely to stick: The evening of payday; The first day of the month when you change the calendar over; Sunday nights when you prepare for the week ahead. Set it as an appointment in your own calendar and stick to it.

Fixing your financial clutter is the perfect new financial year resolution. It doesn’t need massive filing cabinets and thousands of Kikki K folders and planners (unless you want it to). It can be as simple as a few bulldog clips and a simple routine.



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