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(HealthNewsDigest.com) – How to Set Up a Money Management Schedule to By The many tasks associated with managing your money and debt can seem overwhelming – and the results of either doing it or not can create significant stress. But there is good news: If you set up systems to help you remember these tasks, you can get debt relief and find a better way to organize your money. Here’s how.
Every day:
1. Track your spending. Write down what you spend every day. Knowing what you spend allows you to make conscious decisions about what to do with your money, which will help avoid debt.
2. Deposit any cash or checks when you receive them. Don’t risk losing a check or wasting cash.
3. Set up a bill-paying system. Pay every bill as soon as it arrives. Set up a system to get bills paid on time. Either mail payments as soon as you write the check, set up automated online payments, or use a “tickler” file that you check daily to tell you when to mail payments.
4. Switch to cash. Research shows people spend 15 percent more when they use a credit card. Bonus: Paying cash means you can’t build up additional credit card debt.
Every week:
1. Review your spending and budget. Total your spending in various categories. You will be able to see your spending patterns and spot areas for savings. Then check your budget to see how your actual spending tracks against your expectations. Adjust spending for the next week(s) to remain within your budget.
2. Check balances of checking and savings accounts. Go in person, check online or call your bank or credit union to stay aware of how much money you have and what bills have been paid. You can watch for fraud and see when balances are getting low to avoid overdrafts or bounced checks.
Every month:
1. Review and update budget goals. Go over your income and planned expenditures for the coming month. If you will have out-of-the-ordinary expenses, such as holiday costs or a car licensing fee, make a plan for how you will handle them.
2. Pay down debt. Create a plan to pay off credit card debt. Pay mortgage and auto loans first, prioritizing mortgage. Then pay off credit cards and loans. Pay minimum payments on all bills except the one with the highest interest rate, and then pay as much as possible on that bill until it is paid off.
3. Bill yourself to add up savings. Use direct paycheck deposit or automatic transfers (often set up through your bank or credit union) to painlessly accumulate savings.
Every year:
1. Review insurance. Check all of your insurance policies once a year to be sure they still provide appropriate coverage. Update them and check to be sure you are getting the best rates.
2. Check interest rates. Comparison shop for higher yields on savings and checking accounts. A financial advisor can help determine which investment vehicles might be best.
3. Consider an annual utility payment plan. Ask your utilities companies if they offer a level monthly payment plan to avoid the ups and downs of utilities bills as the seasons change. This helps many people stay on budget.
4. Review your credit report. Get a free credit report once a year (www.annualcreditreport.com or 877-322-8228). Read it carefully, and correct any errors.
By taking care of your money in just a few minutes every day or every week, you’ll feel better about yourself and gain more security. It takes a little bit of effort – but the payoff is worthwhile.
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