Finances can be something you want to put aside and forget about. You stuff receipts into draws and prolong opening the mail, dreading to find another bill. Your finances feel like a mountain in terms of time to sort them out, so the natural response is to avoid them as much as possible.
Avoiding the hard stuff is human nature. We are inclined to avoid what feels uncomfortable and seek out what feels good.
Do you know what does feel good though? Organized finances. Here are a few good reasons why you should organize your finances:
It Doesn’t Become A Mountain
If you regularly keep track and organize your finances, it doesn’t ever feel like a terrifying mountain of work. It can just be a simple, short task you attend to each week.
What if they are already a mess and you feel overwhelmed? Well, as the old (slightly unusual) saying goes, how do you eat an elephant? One bite at a time. Of course, it feels intense thinking about doing everything all at once. The biggest thing is to start – take a tiny bite.
TIP: Overcome the hurdle, and start getting organized.
Set a timer for 30 minutes. During this time you just have to start. It might be getting papers organized or finally opening those bills. Maybe you need to enter some receipts.
It doesn’t matter what you do as long as you are starting to organize your finances within that 30 minutes. It isn’t long – you can do it!
After the timer goes off, see how you feel. To have finally made a start normally gives you some confidence and momentum. You might even want to keep going.
You Might Be Missing Out On Money
People often avoid organizing their finances because they are worried about having to spend money, or that their finances will look pretty scary. However, have you ever considered that avoiding finances, it can also mean you are avoiding getting money?
When you try to keep your eyes closed to your financial situation, it means you don’t see the good stuff either. Perhaps you got overcharged and could claim a refund. Or, you have money sitting in accounts that you had forgotten about.
You might even be able to refinance some loans for a more competitive rate and save thousands of dollars. Yet, if you haven’t been organized, all of this can go unnoticed.
Do It Now, Then Relax
Bills don’t go away by not paying them. They don’t get any cheaper either. Actually, many companies will charge a fee for late payment.
Additionally, if doing your taxes or organizing your accounts is something you put off, it only prolongs the stress. Even if you feel like you have pushed it to the back of your mind, it is still there causing you to worry.
Disorganized finances or unpaid bills ensures you always have that lurking in the background, making you feel bad. You don’t really get any short term benefit by using avoidance – you only prolong the pain.