Organization is the Key to Thriving Financially

I once had a roommate who was a wonderful person but an organizational nightmare. Her stuff was strewn from one end of our space to another. Stuff came into the house and just landed wherever. Mail, clothes, books, DVDs, utensils… it was just everywhere. Even food was everywhere. There were snacks and cereal in cabinets all over the house, and nothing was ever in the same place twice. I, on the other hand, require organization to thrive. Needless to say, while we remained friends, we could not be roommates. 

While her disorganization was a problem in general (she could never find the clothes she wanted for work, or lay her hands on the book or do-dad she was hunting for, for example), it ended up costing her financially. Bills went unpaid because she didn’t know where they were. She overdrafted constantly because she never knew how much money she had. She bought multiples of items because she couldn’t find the first one, so she bought another. And this was back in the days when our financial concerns were few! I can’t imagine how her life is now in middle age. Unless she’s reformed, I imagine things have gotten even more out of control and her finances are a disaster. 

Don’t let this happen to you. Organization is the key to a stable financial life. Here are some problems that can result from disorganization, as well as some possible fixes. As with everything, what works best for you will be personal. Experiment until you find systems and tools that work for you, and then keep up with them. 

The Problems

• Late fees, reconnection fees, and overdraft fees. When you don’t pay bills on time, or you don’t know how much money you have, your income gets eaten up by fees. 
• Non-payment of bills/debts. When you don’t pay your bills because you didn’t know they were due, you risk having your services disconnected and your accounts reported to collections. The resultant credit score damage can cost you for years. 
• Missing money. If you’re disorganized, you might lose checks, fail to record transactions, or forget where you put your cash.
• Scams/Hacking/Bank Screw-Ups. If you don’t keep up with your accounts, you leave yourself open to being the victim of a scam that drains your account, a hack, or an undetected screw-up by your bank. Organized people tend to catch these things sooner, resulting in less damage. 
• Lost evidence. Your disorganization likely means you’re losing vital paperwork or emails. Can you find your proof of warranty or purchase if you need it, or your receipt if you need to return an item? Do you have the paperwork to claim that big rebate or tax deduction? Can you find your prior year’s taxes or proof of filing in case the IRS comes calling? 
• Unused subscriptions. Disorganized people tend to rack up subscriptions to services that they end up not using, yet forget to cancel. Money is wasted on streaming, music, or gym services that aren’t necessary or used.   
• Lost savings. If you’re not organized, chances are you’re missing out on saving opportunities. Coupons get stuffed in a drawer, never to be used. Rebates go unclaimed and gift cards or store credits get lost and remain unused. You may have great intentions to save money, but if you can’t find and redeem the savings, you’re in trouble. 
• Buying the same item over and over. I know plenty of people whose houses are so cluttered and disorganized that they can’t find anything. Tools, utensils, glue… whatever it is, it’s lost in the mess. Their solution is to buy another of the same item, which is a waste of money. 
• Wasted food/Too much takeout. A disorganized pantry and fridge leads to food that goes bad before it gets eaten. Either that or the mess is too much to navigate so you just resort to takeout. Either option is a waste of money that could be prevented by an organized food system. 
• Storage fees. When the mess gets completely out of control, it usually ends with you paying storage fees to accommodate the overflow of stuff. Chances are you don’t need a storage locker, you just need to get more organized and toss out the excess stuff. 
• Work problems. People get fired from jobs for being too disorganized. If you’re always late because you can’t find your keys or clothes, if you can’t meet deadlines, or if your work area is so messy that you can’t find important documents, your employer isn’t going to be happy. 
• Last-minute emergencies. Yes, sometimes we all have emergencies that we can’t prepare for, but many so-called emergencies are just a failure to plan. And they can be expensive. Many bills charge a fee for rush payment processing or account reinstatement. Repairs are more expensive when the problem has been left to fester. Last-minute travel is almost always more expensive. Anything needed “right now” is going to be more expensive than if you had time to shop around and compare prices. 
• Time, productivity, and energy loss. Disorganization is draining. It not only drains your money, but it drains your time, energy and productivity. You waste time and energy looking for stuff and cleaning up problems, and all of that takes away from your ability to do more productive tasks. 

The Fixes

• Have a bill-paying system. There are lots of ways to set up your bill paying so that nothing gets missed. You can set aside one night per week or month, or handle bills as they come in. Keep the bills and payment supplies together. So if you pay by check, have your checks and stamps near where the bills are. If you pay online, place the bills near the computer. As you pay, keep records of when you paid, how much, and via which method so you can look it up if need be. You can use an old-fashioned register or ledger, spreadsheet, or finance app. 
• Automate what you can. If you can automate payments, do it, especially if you’re forgetful or a procrastinator. It will help you avoid missed and late payments. Just remember to double check that the payments are correct when they’re drafted and applied to your account. Banks do screw up and you want to catch it early.
• Put mail in one place. Have a place where you put your mail, and go through it frequently. Piles of unsorted mail lead to missed bills, refunds, coupons and other items. Do the same for your email. Have a folder for anything finance related and go through it frequently to make sure you’ve paid and dealt with everything. 
• Keep a financial calendar. Keep a calendar that shows your paydays, bill due dates, and dates for infrequent expenses like insurance, car registration, taxes, trash collection, etc. This helps you see at a glance what is due and when, and ensures you don’t miss those rare payments like insurance. 
• Get tools that work for you. No one is going to judge your systems or your tools, so use whatever you like. If you like spreadsheets, use them. If you prefer paper and pen, that’s great, too. Maybe you have a great app or program like QuickBooks that works for you, or you prefer some combo of paper and electronic. Use whatever you will stick with. 
• Resign yourself to keeping some paper. As much as we’d all like to get rid of paper, there are some papers you’ll likely need to keep, so set up a filing system. You may not need a whole filing cabinet, but you’ll probably need at least an expandable filing case or a binder. Again, find what works for you. 
• Everything in its place. Generally life is easier when everything has its place. Keys always go on a hook by the door, for example, eyeglasses go on the nightstand, and clothes are always put away in the proper drawers. Assign everything in your home to a place and make sure the items are always put in their places at the end of the day. A few minutes of tidying up beats hours of searching for something. 
• Organize your pantry and fridge. Figure out a system to make sure your food doesn’t go bad and is always accessible for easy meal prep. Rotate your foods from back to front so the oldest items are always in the front. You can go crazy with all kinds of baskets and organizers, but you don’t need any of that. Just figure out a system that works for you and how you prepare meals. 

Do you have any more organizational tips or hacks? Share them in the comments below. 

Read More:

• Get Organized: A Bullet Journal Tracker Can Change Your Life
• Inexpensive Ways to Get Organized
• Simple Bill Paying

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Jennifer Derrick

Jennifer Derrick is a freelance writer, novelist and children’s book author.  When she’s not writing Jennifer enjoys running marathons, playing tennis, boardgames and reading pretty much everything she can get her hands on.  You can learn more about Jennifer at: https://jenniferderrick.com/.