moneyFYI
Financial Freedom Is Merely Organized Common Sense
Organizing Is Not So Hard
Organizing is pretty much just applied common sense
How do you organize your kitchen cupboards?
There is a pattern and most of us organize based on experience and we often don’t know how or why we do it the way we do.
- Make note of the items we use most. Assign them a convenient position.
- Put the items we use least in high or harder to get to places.
- Assign places to the rest. use size, use, flexibility as criterion.
- Consider internal shelving to capture the high space within a shelf
Governing rule – Everything has a place and nothing else goes there.
Outcome – When you run out of room, you cannot have more things than go in the cupboard. Prioritize the things you need and don’t need. Or create more storage space. Could be in the basement or the garage.
How does financial organizing look like that?
Pretty much the same plan.
Spend money that must be spent has priority and comes from easy to access resources. Car payments. mortgage payments, food, gas, and a few dozen more that happen every month. A chequing account is handy for that.
Set money aside for seldom due expenses. Vacation, Christmas, annual insurance bills. Keep it away from the everyday payments fund.
Set money aside to pay down debt.
Set money aside for the future. Education, retirement, future major purchase.
Organizing rule – You can spend a given dollar only once. Be sure it is in the right place so if you decide to spend it, it is easier to see how you are using it for something unintended.
Any money left?
If no, there are too many things in your income cupboard.
Time to prioritize and dispense with some of demands, or it is time to increase the space. It might be a job search. It might be some training or education. It might be seeking a raise where you are.
What you learn
You can’t put more into your cupboards than they will hold. If you have more demands to put into your income cupboard, you must toss some of the demands or increase the space.
If you have too much unused cupboard space, try to decide if a change in cost of living is justified. It is as big a mistake to save too much as it is to save too little.
The takeaway.
Check your organization and if it isn’t neat enough, reorganize.
I help people have more retirement income and larger, more liquid estates.
Call in Canada 705-927-4770, or email don@moneyfyi.com
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