Getting organised - 10 things you can
do now to get your finances on track

By Michael Walters

“I’ve got to get organised!” We’ve all said it – particularly when it comes to getting on top of our finances. Sometimes you just need a bit of a head start, then you’re on your way to financial success.

Debbie Stanley, a professional organiser and author of Organize Your Personal Finances in No Time (Que Publishing), has some timely tips to help you get started.

1. Always ask for a receipt

“Receipts are one of the best ways to begin creating a personal budget,” says Debbie. “They provide an accounting record of where and on what your money has been spent. However, be mindful of what I call the ‘next-in-line shuffle’ where you are so busy trying to get out of the next person’s way that you don’t properly file away your receipt in your wallet or, worse yet, leave it to get lost in the shopping bag.”

2. Cards consolidate transactions

Consolidate your transactions with either a credit or debit card; it saves collecting receipts and your transactions can be viewed online almost instantaneously. “Cards simplify things for the consumer and are a great way of keeping track of your money,” Debbie says. “You’ll have one paper trail of all the transactions you’ve made, but beware having a record by itself doesn’t necessarily help make better spending decisions without the collaboration of a budget.”

3. Cheques break the system every time

“Cheques require extra vigilance in record-keeping, or they will break the system every time,” according to Debbie. “It’s so easy to neglect to transcribe the cheque details across to the chequebook stub and without them, your budget will never balance.

Also, cheques not cashed immediately can be ticking time bombs that can sabotage your budget when you least expect it. Web banking and direct transfer options to settle accounts owing such as BPay are much more reliable for budgeting and keeping track of your funds than writing cheques.

4. Cash disappears

Cash can be equally troublesome, particularly for those getting cash advances, where high borrowing rates make it even more imperative to know what the money is being used for. While the debit gets recorded on your statement, unless you’re vigilant about keeping receipts or recording transactions, the money can be difficult to ultimately account for. Neglect to get a receipt? Make sure you write down the transaction on your last ATM withdrawal slip so you have a record of the money. “Before you step away from the counter, write down how much money you’ve handed over and for what, borrow a pen if you have to but take that moment to record the transaction because ‘later’ never comes,” Debbie says.

5. Record your expenses

You don’t need an accounting degree to record your outgoings and incomings - there are a number of online budgeting tools and simple spreadsheets you can use to stay on top of what you spend. The trick, explains Debbie Stanley, is twofold: First, don’t have too many categories in your spreadsheet – no more than 10 under broad headings like Household, Automobile, Fun, Pets, Children, Utilities, etc. Keep it simple so you can sustain it. Secondly, don’t let your receipt pile build up and become an overwhelming task.

“There are two extremes in people, those that are lazy and don’t do it and those that overdo it,” she says. “You don’t want to make organisation a hobby, do just enough to get by, remove the guilt and then forget about it.”

6. Now, create a ‘simple’ budget

After you’ve recorded what you’re spending, the next step is to look at what you have to spend by knowing your net earnings. By being mindful of where your money is going, you’ll know exactly what you have and with a clear picture, you’ll be able to make realistic decisions for the future.

“Budgeting can feel like a punishment to some and a gut-wrenching reality check for others, so if you’re really struggling don’t feel ashamed about seeking out the assistance of a money manager to help put you on the road to better finances,” Debbie says.

7. Where can you tighten the belt?

See a bulge in the budget? Create subcategories under that particular heading and break down your expenses even further so you really know where the money is going. “If your entertainment expenses are particularly large you might subdivide it to discover that beer is accounting for 25 per cent and then make the appropriate belt-tightening adjustment to balance,” Debbie suggests.

8. Be aware of what motivates your spending

Impulse buys? Got to have it so you don’t forget you wanted it? Try writing a ‘want’ list that keeps the money in your pocket and makes a note of a book or CD you might want, but then buy it at later date when you’ll actually have the time to sit down and enjoy it.

“Too many times,” says Debbie Stanley, “we buy things on the fly: a book, for example, we want to read but one that ultimately sits in a corner gathering dust because we don’t have the time to get to it. You’ll break your budget if you buy everything that catches your eye.”

A yellow label stuck to the front of your credit card or chequebook is another great way of reminding you of a larger financial goal, to help curb impulse shopping.

9. Beware the small things

It’s those small cash transactions for coffee, newspapers, etc. that ultimately add up and can catch budgeters off-guard. Conversely, a coffee expense saved on a daily basis can add up to something far greater. “$3 saved on that extra coffee five days a week amounts to a savings of $780 over a year that can be put to a larger purchase,” Debbie explains.

10. Set up regular payments

Regular automated bill payments take away the stress of bill paying and may result in a pleasing surplus to put towards the year-end bills. Better to be in credit by a few dollars then in debit or, worse yet, being late for a bill payment and penalised as a result. “Pick a generously average bill and set up an automated bill payment for that amount,” Debbie suggests. “Revisit the bill payment once every six months to a year to make any adjustments which should include finding the account in credit.”

As for credit cards, which brutally apply interest the second you miss a payment, Stanley advises paying the bill the day you receive it. “The little amount you might make in bank interest is negated by running the risk that you’ll forget to pay the bill and incur high credit card interest charges on the full balance. Receive it; pay it – it’s a much safer habit.”