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Deciding to organize and manage your financial life can seem daunting.

Here's a good place to start: 

1. Begin logging everything you spend on a daily basis so you are able to analyze where you're money goes immediately. This will become the basis for your budget and plan in the future.

2. Set up (or review) an easy to use home management system. The easier you have your financial life organized the easier it is for you to manage your money more effectively. If you don't know where to begin, swallow your pride and ask a friend to help you. Your system should be easily accessible, organized by category and filed by date. Be logical. In the event of an accident or your death someone will need to access your finances. Consider this as you create and review your system.

3. If you manage the money for your family ensure your system is family friendly and can be managed by your partner should you be away or anything happen to you. If your partner manages the money ensure you know how they do it (!) and that you are able to access funds as well as the system should something happen.

4. Choose a dedicated time slot to do manage your finances on a weekly basis one night after work or one weekend morning. Stick to this time weekly and monthly.

5. Would it help you if you paid your bills or organized yourself in a different way? Online, over the phone, monthly direct debits, etc? If you think it might streamline your financial management make the time to make the changes. Time spent at this stage will be time well saved in the future.

6. Ask your friends for their tips and hints. Administration and discipline comes in different forms. Your friends or family may have the perfect system that you can simply replicate.

 Once the above is in place your first goal is to live within your earning means and have 6-8 months living expenses saved as your personal emergency fund should life send you a curve ball. It doesn't matter how much you may or not make, spend or save, this has to be your first priority in order for you to consciously manage your money.

Start by asking yourself:

1. How much do I earn each month (not including bonus)?

2. How much do I owe in personal debt?

3. What are my fixed monthly outgoings?

4. Can my income pay for my outgoings?

 This will give you a clear picture of what your financial reality is. If you are in personal debt consider a debt management plan. If your income doesn't match your outgoings cut your outgoings and/or look to increase your monthly income. If you have to lose the gym membership, manicure, car or house. Choose to let it go no matter how much it hurts, and actively work towards building a conscious life based on personal and environmental sustainability. Tell yourself you're going green and let yourself feel good about it.

The Australian Government has produced some helpful guidelines.

http://www.understandingmoney.gov.au/

Once you have your plan in place begin to declutter your home. If you are in need of funds, sell your goods you no longer need, freecycle them or donate them to charity. This is liberating. Too much "stuff" in our living and working space can clog our energy, slow us down and make us feel overwhelmed.

More about Decluttering

If you are overwhelmed, get help! Don't keep your head in the sand. Ask a friend or family member to help you create an easy to use system. It doesn't need to be fancy but you do need to be able to easily find, file and work with your system.

 

Tip: A client of mine loves the fact that not only is she debt free, her credit cards make her money! She lives within the budget she can afford and uses a cash back credit card to buy all her groceries which she pays off every month. At the end of the year she receives her cash back and treats herself- on behalf of the credit card company!

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