For most people payday brings relief to a parched wallet or bank balance. Payday means being able to pay the bills and having money again to survive until the next time it happens. While this hand to mouth existence is alright with many individuals some people are uncomfortable with it. Not knowing where your money goes every month and not being organised when it comes go finances can become a bigger problem in the future.
Here are some of the best reasons why you should organise your finances now.
Helps You Achieve A Goal
Organizing your finances and keeping track of your spending habits can help you achieve a goal. Owning a house, paying off student debts or buying a new car are all achievable goals. However, they can be hard to attain if you’re disorganised with your money and careless with your spending.
In order to achieve these goals you need to organise your finances. Student loans, house down payments, mortgages and even car payments can eat up a significant chunk of your pay check. Organizing your finances will let you know how much you can set aside each month while making sure that all your bills and obligations are met and at the same time.
Forces You To Prioritise
Which is more important, saving off for a down payment for a home or buying Starbucks coffee every day? The truth, nobody has access to infinite amounts of money. Yes, Jeff Bezos and Bill Gates can afford to go to Starbucks every day, but can you?
Keep in mind that you have a certain amount of money each month and this money has to be divided into living expenses and other financial obligations. Organizing your finances will force you to take a look at what needs to be prioritised. If you really want to save for a down payment then this needs to be prioritised over your need for expensive coffee.
Forces You To Become Responsible
Being financially organised is part of being an adult. You can’t depend on your parents forever and making money and paying bills is all part of adulthood. But in order to truly become a responsible adult you need to organise and track spending so that you know where your money is going.
I’ll bet you’ll be shocked to know that you can spend at least $20 at Starbucks per week. Multiply this with the number of weeks per year and you’re downing at least $1,000 of coffee per year. Think what this money can do instead of being spent on expensive coffee!
Keeps You Conscious Of Your Bank Balance
Organizing your finances keeps you accountable.
Let’s say you’re making X and spending Y. Therefore X – Y should be a positive number. If it’s not then that’s a problem and your bank account could be in trouble too.
When finances are organised you know where your money is going and you can also make sure that you’re spending less than you earn. When you spend more than you earn you will end up with overdraft fees which can be very expensive. So always stay organised and on top of your bank balance to stay out of the red.
Gives You More Control
Organizing your finances gives you control of your financial situation. Knowing where your money goes can be an empowering feeling. If you are well organised you know that bills are paid and you know how much you can spend on a daily basis. You don’t necessarily have to live like a miser or deprive yourself of delicious food or designer clothing. You just have control over how much you can spend on a given moment because you know how to track and prioritise.
When your finances are organised you don’t only know where money is going you also focused on what’s worth spending on. Overall, being organised makes managing money easier and keeps you out of debt. Organisse.com.au can help organise your finances with the help of qualified licensed and experienced professionals.