Organising your Personal Finance is arguably one of the best ways to monitor and keep up with your expenditures.
Most young people like to shop but the fact is that most of them will waste their money on unnecessary stuff, especially, if they don’t organise their personal finance.
You probably have a notebook for each of your classes to help you stay organised. Now, take some time to get your financial life organised too.
If you want to be able to manage your finance and be more prudent, it is advisable to create a filing system to keep track of your financial paperworks.
How young people can organise their personal finance
You all know that any late payment of certain bills can lead to additional charges. This is why having a filling system can also be helpful in keeping other important documents that will help you pay bills on time and meet important deadlines.
Keeping records also helps you identify errors in your financial records and recall important dates, like loan repayments and bill due dates. Below are some of the ways you can label your files:
#1]. Bill payments
Paying your bills on time is very important not only because you may not have access to some of the services you are being charged for, but also because it may incur additional charges.
Some bill payments such as catalogue shopping and credit cards payments are notoriously known for additional charges if customer failed or missed a payment. You will have to pay them on time to afford unnecessary surcharges. Put your bills in this file to help you remember to pay them on time.
#2]. Bank statements
Nothing is as good as keeping record of your bank statement when it comes to managing your personal finance.
Banks do make mistakes sometimes but you will not be able to know if there is any mistake made on your account if you didn’t read through and keep your bank statement.
If your bank statements are online, save them as a PDF and print them out for your records. It’s advisable to keep five to seven years worth of bank statements in your records for tax purposes.
#3]. Savings and investments
Where and how do you invest your hard-earned money? If you have money to save or invest, how can you find a return that is higher than inflation? These are some questions for people pondering on investments.
But never mind the questions, filling the statements from your bank savings account and any other investments such as a Certificates of Deposit (CDs), savings bonds, or mutual funds are essential and should also be well documented.
#4]. College, financial aid and bursary
Another important records to Keep is your college activities. These are records about your courses, grades, and credits. Keep them away and a safe place because you will always need them when writing job applications.
Also, keep records of your student finance, save applications, award letters, student loan agreements, and notes about important telephone conversations. If you have access to bursary or grant, make sure you keep and document all the necessary records for future use.
#5]. Insurance, loan and credit cards
If you can drive and have a car, make sure you file and document your car papers and details. Don’t let the papers lie around on the floor or on your table. They are important documents that should be kept away.
Also, don’t forget to file your bank loan and credit records. Such files as loan agreements and payment records for car loans, credit card payments, and others are very important documents that you should look after. Other documents you should be keeping include medical and renter’s policies.
#6). Receipts and warranties
Almost every student has a computer or laptop to help them in their studies. Make sure you keep any documentable information on major purchases, such as computers and stereos. If something goes wrong with the item you purchased, your only saving grace could be the receipt or evidence of purchase.
Put your tax returns, council tax and any other Inland Revenue documents here. Records that are difficult to replace, such as your original birth certificate and Social Security card, should be stored in a safe deposit box at a bank or in a fire-resistant safe at home.