3 ways to organize your financial life
Feeling scattered?
Prior to the pandemic, multi-tasking already seemed to have crept into all aspects of our lives. And it wasn’t happening only at work, it was happening everywhere. Checking email in the line at the grocery store, listening to Rosetta Stone on the commute, or browsing online shopping sales while watching tv.
Sometimes it seemed like an efficient use of time to be listening to an educational podcast at the nail salon. Other times, it felt too much.
Since quarantine began, there have been a seemingly infinite number of things to juggle.Completing some to-dos feels productive (like working or exercising), some simply feel necessary (procurement of food) and sometimes guilt starts kicking in (sleeping?)
This might be why I’m feeling a bit scattered these days.
In my experience, feeling scattered does not boost feelings of wellness. Instead, I feel like a ping-pong ball at a high-stakes table tennis tournament.
When it comes to your finances, feeling scattered can be especially stressful. Organization is essential to clarity and confidence when it comes to having control in your financial life. If you’re looking to improve the organization of your personal finances, consider these 3 tips:
1. Make a list of your goals: Often times, we ruminate about our goals and desires in our minds, but don’t write them down. Get them out of your brain and onto paper! By documenting your top financial goals, the time period in which you want to achieve them, and the estimated dollar amount required, you will bring greater clarity to your plans. While you’re at it, write down why achieving each goal is important to you. Then, if you find yourself questioning a future financial decision, you can come back to your goals and remember why you’re taking the actions you are! (aka why shouldn’t I buy this new handbag? Oh yeah, I want to buy a new bike so I can go riding with my niece.)
2. Dedicate time for your financial wellness: Today I worked out because it was on my calendar. Would I have exercised if I hadn’t committed to a group of women that I would be on Zoom doing push-ups with them? Admittedly, I’m not sure. Without that commitment and specified time blocked on my schedule, there are a lot of competing priorities that try to take precedence. The same goes for paying attention to your finances. Consider scheduling a “Power Hour” or “30 for Money” session every other week when you will focus on your money. Whether that means reconciling your spending, making that lingering phone call to the cable company, or reviewing your subscriptions,you can knock out a bunch of tasks when you make the time.
3. Know your passwords: If you’re already not looking forward to looking at your credit card statement or your IRA balance, it can be sincerely discouraging when you can’t remember your online passwords and have to reset your accounts. After the financial crisis, I remember a colleague joking that the reason many Americans did not raid their retirement accounts was because they didn’t know their passwords. Make a password list and put in a safe place that you’ll remember. Voila - one more stress barrier down!
As a friend recently said to me, “Why do I have so much in my calendar? Oh that’s right…because I’m responsible.”
Ha! And it felt true – they are.
It was a good reminder for me that I can take specific steps to mitigate my feelings of scattered-ness. Feeling like you could benefit from greater organization? Or financial clarity? Consider this your nudge too!