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When
you see the phrase "financial planning," it's easy to first
visualize long-range plans and future earnings, mapping out
your financial road in terms of miles, not steps. But money
management isn't just about dealing with what's coming up,
it's also about controlling finances every day. Learning to
recognize where your money is going each day can help you
reach goals and smooth your financial path.
Take a Closer Look
Did you start the day with a $20 bill and come home with
mere pocket change? You're not alone. It's easy to lose track
of money when it's handed out in small portions, like a few
dollars for coffee, a few more for lunch, and then a few more
for parking or an afternoon treat. Staying aware of these
little necessities and taking a good look at where your money
is going will help boost you up to the management level.
Make It Simple
There are many ways to turn daily financial organization
from a time-consuming management headache into a more streamlined,
and even pleasant, process. Here are some ideas to help you
get started:
- Consolidate your accounts. Balancing brokerage
and IRA statements with savings and checking account details
can mean a pile of paper that seems insurmountable. Putting
all your nest eggs in one basket can significantly reduce
the hassle of managing multiple accounts from different
banks and brokers.
- Use online banking. Need to check your balance
from work? Want to make a quick transfer between accounts
but don't have time to stop at the bank or ATM? Online banking
allows you to manage banking and investments from anywhere,
anytime. You can also review recent ATM and debit card transactions
instantly to see if you need to be thriftier with your plastic
cash.
- Pay bills electronically. Through online banking,
you can make credit card, utility, and mortgage payments--even
some landlords will accept rent electronically. Recurring
payments can be scheduled for automatic deduction from your
account, making late fees a distant memory. And the money
you save on postage can really add up over the course of
a year.
- Request a change in billing cycles. If your major
bills come due at different times, you can request a change
in the billing cycles. This will enable you to set aside
a time each month to review and pay your bills.
Keep on Track
After factoring in all sources of income and accounting for
large and small expenses, construct a budget you can live
with. Being able to easily review your financial picture will
put you in control and controlling expenses is the key to
staying within a budget.
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