How to Organize your Finances

Do you have credit card debt, a car loan or live paycheck to paycheck? Do you feel overwhelmed by how little money you have left over, at the end of the month after working so hard? You don’t have any savings and put things you want on your credit card? Are you tired of living in constant fear of not being able to pay for an emergency situation like a car accident or a loss of job? If you answered yes to any of these scenarios it might be time to organize your finances and get back on track for financial freedom.

When we were kids, no one thought it would be this hard to adult, right?!

8 out of 10 Americans are in debt. Broke is the new norm. If you are sick and tired of being broke I have some tips that helped me become debt free and take charge of my finances. Books like Dave Ramsey’s “Total Money Makeover” and Robert Kiyosaki’s “Rich Dad, Poor Dad” have changed the way many Americans view and handle their finances and helped them get out of debt.

Here are my personal favorite 5 Tips to get your finances organized:

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  1. Make a vision Board: What are your long term financial goals? Ask yourself WHY do you want to become financially independent. What will your do when you are?

  2. Take a step back. Reevaluate your spending habits. Print out the past 3 months of your bank statements and determine where you spend most of your money. Create broad categories such as housing, groceries, loans, etc.

  3. Create a 0 based Budget and stick to it. (These are your short term goals, so you can reach your long term goals)

  4. Have an emergency plan in place. Have 1000$ in your savings account for emergencies, so you do not have to use your credit cards.

  5. Pay off your debt and cut up your credit cards. You will not be able to create wealth without paying your debt first. I suggest trying Dave Ramsey’s debt snowball method, where you make minimum payments on your biggest debts and pay off the smallest debt as fast as you can. You go from paying off your smallest debt to biggest, for a fast success experiences and to learn to change your behavior.

Copyright © 2019 by Janine Morales, Certified KonMari™ Consultant, San Diego, CA

Notes: If you are in need of motivation or guidance in your KonMari™ journey you can find a Certified KonMari™ Consultant on the official KMI webpage