Hi Swarm Moms!
As of today you should have all your paperwork together in one space. There should be 3 containers to hold various papers: one for incoming bills, one for personal papers and correspondence, and one for mail that needs to be shredded. Any time you bring papers into your home, you need to put it in its proper place. This will save you time when you process your bills and help you find what you need when you need it.
Pick one day in the week to focus on this space. Swarm recommends your payday.
Payday is great day to choose because it is the most current check you receive that determines your immediate future. What is due, how much, and to whom...
So start the process by looking at your check and making sure it is accurate. You must do this because you do not work for free!!! You would be surprised to know how many moms have automatic deposit for convenience, but never check the amount they received. Always, always, check your check. If you are salaried, checking your pay is easy as it should be the same every payday. If you are hourly, then you must keep track of the hours you work in order to know what you earned and that you are being paid accordingly. If you are employed with a company that utilizes a punch clock, write down the accrued hours when you punch out on the last day of each pay period. Then, if any errors occur with your paycheck, you can contact payroll and have it corrected promptly. Make sure you also check your Paid Time Off (PTO) accrual for accuracy.
Next
On the first page of a notebook that you will title 'Finance', list all your expenses along with the due dates. Credit cards with outstanding balances should have the interest rate noted along with the outstanding balance. Do the same with any automobile loans you have, listing the balance and interest you are paying. If you have any lease agreements (i.e. automobiles, furniture, etc) log these as well.
Take a look at your receipts for the week. Are there any big ticket items in the pile? If so, make a copy for your files. If you haven't noticed, the ink that receipts are printed with these days will fade. That means your proof of purchase for items like TV's, kitchen appliances and entertainment devices (anything you paid cash for) will be void. Files these receipts and/or copies into a file folder that you have prepared and titled, 'Receipts' along with the year.
Once you have logged your expenses for the month prepare a schedule that you can refer to each week to help you pay off bills and maintain your living expenses. For instance, if you have credit cards or medical bills that you can pay down quickly, take that opportunity to do so. ((This is recommended mostly with credit cards, as medical bills don't usually charge interest and you can pay a minimal amount toward medical bills to keep creditors off your back. You must be consistent in your payment of medical bills and if at any time you get a note or call telling you that you must pay more, talk to the medical office's billing department. They should work with you because they want to get paid for services performed and you should pay for services received. ))
Please note ... paying off anything with an interest charge is important to do sooner rather than later. Carrying credit charges from one month to the next is like throwing money away. So take this message to heart... if you can not afford to pay with cash, do not buy it. Save up your money and then, if you want to use the credit card to improve your credit score, buy this month, pay off next month. Simple, simple rule.
Speaking of credit cards... having and using a credit card can actually be beneficial to your credit ratings. By purchasing and paying off a credit card each month you can help to improve your credit rating. A high credit rating will ultimately help you to secure lower interest rates when applying for interest loans like a mortgage or car loan. The higher your credit score, the lower the interest rate. This is information that can help you save big, big money!
Now. Look at your incoming wages. Does it take more than half your monthly pay to cover your mortgage or rent? If it does, then you are living too close to 'beyond your means'. It only takes one unexpected expense to mess up your financial plan. So the time is now to stop frivolous spending and focus on the long term finance plan. Swarm moms need to be able to pay rent or mortgage with less than half of their earned wages. Think about ways to increase your income. Get a better job, find a cheaper place to live, (unless it is not safer to do so). Examine your life and spending and see what you can do to plan a better financial future.
Swarm likes to get creative when devising ways to save money. We use coupons, take week-long hiatuses from shopping, go to estate sales as well as sell things on ebay or in the local paper. Swarm will get into more about savings in another post so take the time as you go about your days to think about ways to save.
Assignments:
1) Get rid of all but one credit card. The card you keep should have the lowest interest rate and provide incentives that you actually use. If there is a particular card that you favor, contact that company and let them know that you are giving up some cards and would they consider lowering the interest rate on that card. If they will, you can keep that card, getting rid of the others. However, if they will not do this for you, cut the card up and send it to the credit card company with a note that you will no longer be using the card.
2) Open up a new savings account. Put in it whatever you can afford. File the paperwork for this account under 'Savings Account #1'.
3) This month you must order a copy of your credit report. I found the following information at this address.
http://www.consumer.ftc.gov/articles/0155-free-credit-reports
The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months. Visit annualcreditreport.com to get your free credit report.
Lastly,
4) If you are not already a super saver at your local grocery store, take the time this week to obtain an application. This card will save you money every time you shop. You will accrue points that can lower the price of gas at some stations and/or the store will send you in-house coupons for items that you routinely purchase. It is a win/win situation!!
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