How to Become Financially Organised

How to become financially organised? Most people have their personal finance in complete disarray.

Is it difficult to lead a financially organised life? No.

Leading a financially organised life is not difficult.

If we know how to balance between income and expense, we can lead a financially healthy life.

The most logical conclusion why one is not able to balance income and expense is temptations.

When one makes an expense which was neither planned nor required leads to financial disorganisation.

It is not possible to organise ones finance in a single day.

People do not realise that because they are handling their money poorly, they are facing difficulties in life.

In this article I will try to give some easy tips that helps to organise ones finance.

Before I start, I would like to comment that not using facility like online/mobile banking is like a crime.

Everyone who is interested to organise their finance must use online banking facilities.

I am personally using online banking for last 5/6 years.

Online banking is completely reliable and safe.

#1.  Create a Personal Finance Folder

One of the main reasons why our finance is disorganised is because we do not keep relevant papers properly.

We keep some information in mind.

Some papers are kept in office.

Few documents we keep with our parents/wife.

Some we carry in our office-bag. Doesn’t this sound exactly like you? Yes?

Most of us are like this.

When it comes to money, we do not keep important papers in a organised way.

Step one is to create a personal finance folder.

These days all of us use laptop.

Better is to keep soft copies of all important papers related to personal finance in this folder.

Within the personal finance folder, we shall have sub-folders as shown in the picture.

All personal finance documents can be further classified as shown in the subfolders.

I would also like to add that file names shall be chosen carefully.

Name of file format can be like this:


How to Become Financially Organised -1

#2. Budget Your Income & Expense

The biggest financial mistake we make each day is to spend our money without budgeting.

It is essential to budget ones income and expense.

Best way to prepare a budget is take out a note book and list down each and everything we spend.

The expenses can be daily, monthly, anually etc.

Once we have this exhaustive list ready, we shall put values ($) to each one of them.

Once the expenses are valued, try balancing the total expense with total income.

Total expense shall always be less than total income.

Reviewing budget is as important as preparing it.

One must review ones budget at least once in 3 months.

#3. Remember all Annual Expenses

Annual expenses are one of the main culprits which disturbs our financial health.

The expenses we make every month are the ones that do not surprise us.

We become habitual of our monthly expense; hence we plan and execute them to near perfection.

But in hustle and bustle of life we almost forget annual expense.

As these expenses are managed only once in a year, it is easy to forget them.

The result is, we never allocate funds for annual expenses.

So, when these expenses get due, we dig into our investments to pay them.

Best is to saving for each annual expenses individually.

Some annual expenses that we often forget are as listed below:

How to Become Financially Organised -2

#4. Pay Bills on First Week End

Not paying bills on time is another mistake observed in common men.

But it is not difficult to overcome this mistake.

Fix a schedule and pay all bills on that day each month.

I pay all my bills on the first week-end of the month.

On weekends I am free and with a clear mind I pay my bills.

Most of the payments I make are either through credit cards or through online banking.

I have shown few monthly payments in the photo.

Keeping a record/schedule like this helps in making timely payments.

#5. ECS is a good option for payment

There are few monthly/annual payments that we cannot miss.

For such payments we shall use the Electronic Clearing Service (ECS).

The repercussions of not making these payments on time is sever.

Hence better is to keep these payments on autopilot.

Imagine what happens if we miss to pay home loan EMI?

Few other annual payments like:

  • Life insurance premiums,
  • Health insurance premium,
  • Vehicle insurance premium etc.

There are all too important to miss.

For such important payments we shall use ECS facility provided by banks.

#6. Maintain Payment Receipts

We generally misplace the payment receipts once the payment is affected.

Better will be to keep a electronic copy or hard copy in a folder.

Initially it will look like a burden, but it is better to maintain it.

If we are making credit card or online payments, electronic receipts are automatically generated.

One shall take a pdf print and save it in the designated folder.

Receipts of payments made by cash or cheque shall be scanned and kept in designated folder.

Final Words….

If one is interested to know how to become financially organised means he has taken the first step.

This realisation that one is not financially organised is essential.

Only after this realisation one will take steps to improve it.

Generally, people in their first job or in early 20’s are not bothered about getting financially organised.

But in 30’s & 40’s, with increasing responsibilities, people cannot afford to remain financially disorganised.

I have personally felt that organising ones financial side has several positive cascading effects.

Once I improved the way I managed by papers, I started saving and investing more wisely.

The information were very clear in front of my eyes.

I was clearly visualising how much savings I can make each month.

I had more time as I spending less time in searching for papers and remembering information’s.

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