Welcome to Heidi Feldman of Organize & Revise, who shares this post this week!
Spring cleaning isn’t just for closets and cabinets, it’s a time to re-evaluate your spending habits and organize your finances as well. Many people get overwhelmed when thinking about how to organize their finances and pare down on the “stuff” that clogs their lives, both personally and professionally. As a professional organizational and financial consultant, I have found numerous ways to attack the problem and create systems that are easy to maintain. Half the battle is setting aside some time to sit down and face it head on. However, the manner in which it is done is very important to achieving successful change. A few tips I have found to be useful when addressing these issues are as follows:
(1) Do Not Multi-task. Many people attempt to change everything at once in an effort to just get it done. This, however, is a surefire way to make sure that the change they are attempting to make does not get completed. Attack one thing at a time.
(2) Simplify. Keep things simple. For example, complex filings systems with legends, locator codes, etc. may sound like a good idea at first - however, trying to understand and maintain such a system can be difficult and frustrating. Make easily understood files and keep like items together and you will find that staying organized will be much more attractive and easy to maintain.
(3) Avoid Commingling. For example, many entrepreneurs fail to separate their personal and business files and accounts. This is a recipe for disaster. Create separate accounts, registers and files for each and do not commingle anything between them.
(4) Know Your Monthly “Nut” to Crack. Make a list of all your monthly expenses and be honest with yourself about how much you spend on each category. Once you know how much is going out each month and where it is going, it will be much easier to create a budget and pare down on excessive spending.
(5) Change How You Pay for Things. I see it time and time again; people swiping their debit card like it’s a credit card, not recording the transactions, and then wondering where all their money went. A debit card is not a credit card, it is an electronic check that should be recorded in your check register. For my clients that have a difficult time with spending, I suggest dedicating a certain amount of money each month to their various spending categories and only using cash for such expenses. It is much easier to see how much you are spending when the cash envelope is dwindling and you still have 18 days left in the month.
(6) Use Your Time Efficiently and Know When To Delegate. If the time it will take you to organize your finances, business and/or home is time that can be better spent to generate more business, attend to clients or attend to matters that can further your productivity, then delegate the task to a professional so that you are making the best use of your own time. After all, time is money and the goal is to save and generate more money.
If after reading the above you feel you would like some more insight into how to better organize your business, finances, home, etc., feel free to contact me at (818) 430-9762 or firstname.lastname@example.org for a complimentary phone consultation.