Free Tips for Putting Your Finances in Order

Due in part to our ever increasing hectic, fast paced lifestyles, it may become far too easy to push aside, or perhaps outright forget, the importance of keeping our financial lives in order. Despite such temptations, it is important to note that observing some simple, basic accounting procedures can have an overall positive effect on our financial well being.

The following tips, when followed, are a sure cure for financial disarray.

1. Organize your financial records.

Start by sorting your financial and legal papers into categories for easy reference.

Information about your savings accounts (checking account, certificates of deposit, etc.) and investments (stocks, bonds, mutual funds) could go into one savings and investment portfolio.

Outstanding bills could go into another folder that\\\'s easy to remember and find. Documents such as mortgage papers and old tax returns could go into yet another file. It also helps to label your files clearly and even put them in alphabetical order.

To further save time and reduce confusion, shred and toss away old bills, canceled checks, and other documents that have no real use for tax or other purposes. (For example, most people only need to keep old tax returns and canceled checks for seven years. You may want to discuss specifics with your attorney, accountant or another advisor.)

Arranging and updating your files also will help your family locate important documents, such as wills and insurance policies, in case of an emergency.

2. Find ways to spend less and save more.

Here\\\'s one easy way to get started. On one side of a piece of paper, jot down ways you might be able to reduce your expenses. (Examples: Eat out less. Carpool to work instead of driving alone.) On the other side, mark down ways you can increase your income. (Work overtime once in a while. Have a yard sale.) Give this some serious thought, and try to identify the ideas that seem most likely to work for you.

After you begin reducing expenses and earning more money, take a large chunk of that extra cash and put it into savings accounts and, if possible, into investments. Many financial consultants tell their clients to consistently save money on a defined schedule—even if it\\\'s only $5 a week. You may be surprised how fast your savings will grow when you save a specific amount on a specific schedule.

3. Choose and use credit cards carefully.

First, shop around for a good deal. All credit cards are not created equal. There may be substantial differences in interest rates, fees, grace periods and other terms. In general, if you expect to carry a balance on your card most months, try to find one with a low interest rate.

You also have to manage your credit cards responsibly. Here are some suggestions: Try to pay all or a large portion of your credit card bill each month. While it might be tempting to pay only the minimum monthly payment, you\\\'re simply taking more time to pay off your debt and paying far more in interest charges. You may be able to reduce the amount of interest you pay by consolidating several credit card debts into one or two cards that offer a low interest rate.

To avoid paying extra fees, pay your bill on time and never exceed your credit limit. For more about your card\\\'s fees and rules, see your card contract or speak to a customer service representative from the card issuer.

When all else fails.

Some people may have serious debt problems, for any number of reasons. They especially need to have a reasonably accurate idea of their expenses and a plan for better reducing their debts.

If you have serious money management troubles and you can\\\'t solve them on your own, consider enlisting the help of your banker, lawyer or accountant. There are also respected organizations that, for free or at low cost, will advise people with debt and budgeting problems, and even help negotiate repayment plans with lenders.

Find a legitimate debt counselor—and avoid \\\"credit repair clinics\\\" that charge excessive fees for questionable services—start by contacting your local government\\\'s consumer affairs department or a nearby Better Business Bureau.