1. As seen in
January 14, 2011
Taking control
Organize personal finances to get full picture
I
t’s January. It’s 2011. And it’s • Filing the schedule. Online payments can be
time to start fresh. This is the To organize your filing system so convenient if you are comfortable with
year you WILL organize your that everything’s easy to find and the procedure. Pay immediately or set
finances. replace — or store — label your hang- up a payment for the future, prior to
In 2009 and 2010, we looked for any ing files with major headings (bank the due date.
excuse not to look at or even think accounts, investments, household Prefer not to pay online? Set up a
about money. But it expenses, insurance, manual system. Write the check, put
was hard to escape. debts, tax returns, le- it in a stamped envelope, and write
Every newspaper, gal documents and so the mailing date on the envelope so
magazine and televi- on). Next, set up ap- you’ll know when to mail. Whether it’s
sion-news program Ruth propriate subcatego- manual or online, always remember
reported gloom and Urban ries for the file folders. to record the check in a check register
doom. The topic of For example, credit or in your financial software. Your
conversation was the cards, auto loans and goals should be: NEVER pay a late
horrible economy, the student loans would fee; NEVER have a bank overdraft;
lack of jobs, the crash all be filed in the ALWAYS be aware of cash flow.
of the real-estate market and espe- hanging file with the major heading:
cially the decline of investments. It’s “Debt.” • Planning and budgeting
no wonder the last thing we wanted to Now that you know where you
do was to look too closely at our own • Tracking stand financially, you can draw on
financial picture. The route to financial success in- this knowledge to take control of your
Enter 2011. cludes a reliable system to track your finances, plan your 2011 budget and
The news is not yet rosy, but it’s get- money. It is almost impossible to in- achieve your financial goals.
ting better. The jobless rate is shrink- crease assets without this knowledge:
ing. The housing market is — well, How much income do you earn, and Ruth Urban is president and owner
maybe not getting worse. The stock where is the source(s) of that income? of On the Money LLC, providing
market has rebounded. It really is Where is your money going? bookkeeping services, training and
time to take control of your personal If you’re unsure, now is the time consulting on accounting matters.
finances and not let them control you. to begin looking for spending trends. Visit onthemoneyaz.com.
So find a good spot in your home, Online banking can make this
stock it with a calculator and a shred- easier to do. But your system
der and begin. can also be as simple as using
Here’s what you need to do: your checkbook register and
a calculator or a spreadsheet.
• Information Financial software, such as
Make a list of financial contacts. QuickBooks or Quicken, makes
Include the company name (banks, it easy to generate reports that
mortgage companies, insurance are invaluable tools for deter-
agents, etc.), contact name, phone mining how much you need to
number, e-mail address and your increase income and/or decrease
account numbers. Also, take time to expenses to meet your goals.
photocopy what you keep in your wal-
let or purse. If the need ever arises, • Bill paying/savings
this will make it easy to cancel and Set up a schedule to handle
replace anything lost or stolen. Put your bills at least once per
original Social Security cards, pass- week. Include regular savings
ports, wills and titles in a safe-deposit and charitable contributions in
box, but copy them first for your files.