5 Tips to Get Your Finances Organized and Stay on Top of Your Bills

Tip 1. Create a Budget

Before you begin creating a budget, make sure you understand the difference between a budget and a plan. A budget is simply a set amount of money you allocate towards certain categories, whereas a plan is a detailed outline of how you'll spend your money over a specific period of time.

For example, if you have $1,000 per month to spend on groceries, that's what you'd put into your grocery budget. If you want to save for a down payment on a house or pay off credit card debt, you would create a separate savings account with that amount of money in it. The key thing to remember about budgets is that they should be realistic. You can't expect to save up enough money to buy a new car every year, so don't try to do that. Instead, focus on saving money where you can.

Tip 2. Track Expenses

Once you've created a budget, you'll want to track your expenses. This will allow you to see exactly how you're doing financially each month. To start tracking your expenses, use an app called Freshbooks.

It allows you to enter all of your transactions from your checking account, credit cards, debit cards, etc., and then categorize them by category (groceries, entertainment, utilities, etc.). Once you've entered everything, Freshbooks will generate a report showing you all the details

Tip 3. Set Up Automatic Savings

Now that you've tracked your spending, you'll want to set up automatic transfers to your savings account. Many banks offer these options, but I recommend transferring funds directly from your checking account to a separate savings account. This ensures that you won't miss out on interest earned on your savings.

Tip 4. Automate Your Monthly Bills

After setting up your budget and tracking your spending, you'll next want to automate your monthly bills. Depending on your bill provider, you may be able to set up recurring payments for things like mortgage or rent, utilities, insurance, and even cell phone service.

Some providers, however, require you to manually add recurring charges to your account. If you're having trouble finding the right option, consider asking your provider about automated billing. They may be willing to give you a trial run before committing to a longer term agreement.

Tip 5. Use Technology to Manage Paperwork

Finally, you'll want to use technology to manage your paperwork. In addition to automating your bills, you'll also want to use online services to store your tax returns and other documents.