Organization. The very word itself makes many people shudder, roll their eyes, or imagine filing cabinets and neat labels. Organization, from organize, defined as “to give structure or character to similar parts,” is a difficult thing to motivate oneself to do, particularly if it hasn’t happened in a while.
But we all know it is important -and when dealing with your finances, it can be especially so. It is too easy to lose track of where your extra checkbooks are, where last year’s tax returns were stashed, or 
how much you spent last month on groceries.
In order to be truly financially healthy, it is critical that you form some sort of organizational system. It is obviously going to be different for everyone – what matters is that you find something that works for you! For some people, throwing everything into a shoebox works just fine. Others need labels, folders, stickers, markers, and a passel of other tools to keep everything straight.
Now, I don’t mean that you need to color-code everything and have it alphabetized. I have seen some incredibly simple organizational structures – one person I know keeps thing ‘in the first place they would look for them.’ (This works very well for some – I tried it with some level of success, but after a few failures went back to something with a little more structure.) The goal is for you to be able to locate or identify what you need without unreasonable effort. Most people can make do with a few manila folders and some pens to label things – bills, receipts, old paystubs, tax forms, and so on.
To be financially healthy, it is important that you be able to
- Locate important documents quickly and effectively
- Be able to quickly access information you need (both on- and off-line)
- Maintain a balanced checkbook
- Keep track of relevant financial information, including insurance documentation, tax information, and so on.
Your system does not have to be glamorous. It does not need to be shiny, or colorful, or pretty – only functional. I have a beat-up old filing cabinet and some hanging folders with tags, and it works for me. Having your paperwork and finances organized will let you see problems coming and handle unexpected ones quickly and with ease.
Find something that works for you, and share it in the comments!
Tags: budget activities, goals, lists, necessary, organization, organize, writing
