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Obtaining information and being able to process it is an important life skill. When it comes to money, knowing what you have and where it goes can go a long way in doing the things you want. If you’re looking for ways to stay on top of your finances, here are a few tips to help you get started.

Keep Your Goals in Mind

You might find it easier to keep your finances in check if you have some goals in mind. Look at what you want to have within a few months and further into the future. These items will serve as guideposts that provide purpose to your spending and saving.

You may want to rebuild your emergency fund after the holidays. Perhaps you want to pay for a professional training course to enrich your career. Or, you’re determined this is the year you’ll travel to a place you’ve always wanted.

Having a goal in mind will serve as a motivator in terms of finances. Also, it allows you to have a concrete number in mind for your saving efforts. For instance, you might already know the price of an online course or how much you need to live off savings for several months.

If you already know the cost of something, make it a savings goal and calculate how much you’ll have to save each month to reach it in time.

Get Organized

When you know where your money is going, it’s easier to keep track of your finances. Fine-tuning your organizational methods has many advantages:

• Maintains accountability to yourself
• Motivates you to keep working towards goals
• Makes it easier to identify areas that need improvement
• Provides a model for refining your budget in the future
  

What do we mean by getting organized? It means going beyond separating things between just “income” and “expenses” or just putting things into “savings.” Knowing where your money is going will make staying on top of things more manageable. As a result, you will be empowered to make informed decisions.

Your expenses may be an excellent place to start. When organizing your next month's budget, try throwing your purchases into distinct categories. Separate these categories into “required” and “discretionary.” For example:

• Required Expenses:
  • Rent or Mortgage
  • Healthcare Payments
  • Insurance Premiums
  • Groceries
  • Transportation 
• Discretionary Expenses:
  • Entertainment
  • Ordering Takeout or Eating In
  • Streaming Subscriptions or Movie Rentals
  • Hobby Purchases

Categorizing your purchases allows you to get a better look at your spending. It also makes it easier to analyze habits, opening avenues for improvement. You can be as general or specific as you prefer.

Remember: organizing your finances should be a tool that helps you reach your goals. Tinker with your organizational methods to find a style that best suits your needs. When analyzing your expenses, find opportunities first. Avoid counterproductive reactions, such as wallowing in mistakes.

Write Things Down

Effective planning starts with minimizing the element of surprise. It’s easy to get thrown off your budgeting game if you’re hit with a huge charge you weren’t expecting. Alternatively, a series of small charges in a row can quickly add up and erode your financial confidence.

Don’t wait until your statements drop to learn how much you’ve spent in a month. Instead, keep a running tally of your spending. Compare it to the budget you’ve set, and make adjustments as you compile the data.

Stay informed. It may be faster for you to keep track of your spending as it happens compared to waiting for the transaction to post through online banking. As you complete your errands (grocery shopping, gas, etc.), keep your receipts or have them sent electronically. Write the charges down at the end of your day.

For big bills that get charged infrequently (like auto insurance), you can divide the total expected bill equally throughout the billing period. As a result, you can treat it like a monthly subscription and allocate it to your budget accordingly. This makes the resulting bill not seem as big a surprise since you already planned it.

Where should you jot down this running tally? It’s up to you! The note-taking app on your phone is a great place to start, as it will probably be easy to access and update. You can also keep a spreadsheet or “living document” on your computer. Even a pencil and paper still work. No matter your preference, make sure you know where it is, have a method for updating, and stay on top of it.

Make Technology Work for You

Your computer, phone, and tablet can all be used to keep track of your finances. Your financial institution should have an online platform that allows you to log in and handle much of your banking. These can come in the form of a website or an app, and they have powerful features baked into the experience.

Here are a few things that your digital banking platform might let you do through their website or app:

• Label Accounts: You may have different checking and savings accounts for depositing money. Instead of trying to keep a database of account numbers and product names, personalize your accounts to make them easier to reference. This will save time and reduce confusion when it’s time to move money.
  
• Set Up Notifications: Getting notified of debit and credit card transactions via text or push notification is possible. This allows you to keep track of your spending as well as get warnings of potential unauthorized transactions. 
• Automate Deposits: Beyond setting up direct deposit with your employer, digital banking allows you to make transfers between accounts quickly. You can make saving routine by setting up automatic transfers between your accounts.
  
• Card Controls: Want to keep your credit spending in check? Try your institution’s card controls, which allow you to block and unblock credit cards. This can also work with your debit card, ensuring the attached account is being used for its intended purpose.
  

All in all, money management is a set of skills that you will refine as the years pass. With practice, these skills can empower you to make smart money decisions for life.

Refining your financial know-how will be easier if you have a trusted financial partner. First Florida Credit Union provides resources and tools that allow you to stay on top of your money.