What is a good way of organizing my finances?

Question

I'm a college student and I have a credit card, Target card, and a debit/credit card. I use my debit card religiously and its very easy to not keep track of my purchases. Can anyone offer any good tips for keeping track of my finances? (Besides writing everything down...I become lazy and just forget)

Answer 1

Megan, don't get lazy about your finances. Your going to college to better your future, right? Getting lazy about your finances will just be a set back for all your hard work you are doing in college. You will find yourself in an endless cycle of stress if you aren't on top of your finances. Finances should be top priority. Being smart by going to college was a great investment. Don't blow it by being lax with your finances.

Answer 2

Well, if you are lazy, you can't organize your finances.

First, you need a budget. That has to detail everything you want to spend money on - rent, food, clothes, travel, gifts, holidays, tuition, books, entertainment. Work out how much you will get in a year, then work out a monthly budget.

Onc you have a budget, track your expenditure. Start by making sure you have online access to your bank account information. Each evening, pull it up online and check what you've purchased. That way, you won't have to write it down.

Since you have a Target card, DON'T close it, but also DON'T use it. I'd advise you to cut it up. Closing the account may negatively impact your credit rating, so simply keep the account open, but never charge to it.

If you use the credit card, always pay the whole balance off every month. Never leave anything on it.

And yes, using your debit card for most things is a good idea, but be careful: NEVER buy anything online with a debit card, and NEVER let anyone take it out of site to charge the card - like at a restaurant. The reason is that anyone who gets your debit card information can drain your bank account, and you will be liable for all the losses; with a credit card you are only liable for the first $50. So places where your card can get copied or stolen (online, or at a restaurant) you should use the credit card.

Answer 3

Using a debit card for casual purchases is the fastest route to trouble. You need to curb that.

It's better if you get duplicate checks. You don't have to do the register thing because you have a copy of your check. You can even balance your account on those duplicates.

For casual stuff, take money out of the bank. Use the debit card only at the ATM belonging to your bank. Carry $30 to $50 cash all the time for small purchases.

If you use your debit card for purchases under $10, you are risking an overdraft charge of $35 for that coke or snack. It's simply not worth it. Every time you use your debit card, you risk an overdraft. It's no different than writing a check.

You can cut down the times you have to run to your family for help with a little cash in your pocket and the debit card at home.

Answer 4

It would be a good idea to invest in Quicken or other financial software. That way, you can see all your finances in one place, and easy identify what you're spending your money on. Sometimes, you'll see that you spend a crazy amount of money on relatively stupid things! At any rate, having total visibility into your finances is key to managing them effectively.

Also, I really like Quicken Bill Pay -- I run all by bills through there, and it makes it very easy for me to see what I owe when. I tend to be very disorganized, and this makes my life much easier. It costs $9.95/month; your bank probably offers something less expensive if this is too much money for you.

I really screwed up my credit in college and a few years after by not paying attention to my obligations. I'm 33 and just coming out of it now. Don't make the same mistake I did! The worst thing you can do is keep your head in the sand and not pay attention to these things.

Answer 5

Megan-
You are in college. You are responsible for your finances. If you make a mistake on a debit/credit it will cost you. You will have to pay for your error plus extra fees. Lazy will get you in bad financial trouble. Just imagine not being able to get a bank account!!! Yes,it can happen. Now is the time to pay attention to your finances. Good habits now will follow you through the rest of your life. I saw some great advise. Use whatever method works, but use some method. It only takes a few minutes to save many dollars in overdraft fees. Good Luck.

Answer 6

Cut out the further stuff. You can get the fundamentals for a horny minimum sum of money. Once you begin slicing the belongings you are not looking for, you'll be borrowing much less to pay for matters you don't seem to be purchasing now, plus you'll have further coins to pay down your debt. Make the most important coins repayments you'll be able to come up with the money for in your bank cards every month, and you will not pass over the cash as a lot. It's primary to pay far more than the minimal, due to the fact in the event you best pay the minimal it'll take years and even a long time to pay the debt. Good good fortune!

Answer 7

when you spend money using a credit/debit card or any other card *target card ect* save the reciept you get from the store and put it in an envelope each card gets its own envelope..so when you use your target card put the reciept in the target envelope same for credit card...write on the outside of the envelope which it is so they dont get mixed up...then when payday arrives pull out all the envelopes (one at a time of course) and pull the reciepts out add em up and send in some cash....tip of advice try to avoid paying off a credit card bill with a different credit card trust me i made that mistake not good

Answer 8

If you want to cut down on unnecessary spending, take a step back in time: put away the cards, be they credit or debit, and pay cash for all purchases. You'll be amazed how you can cut down your spending when you actually have to fork over the green stuff.

Answer 9

I am an accountant for over 10 years and have helped many friends in similar situations...I suggest going to a cash only process using checks only for bills you must pay via mail. I would sit down, take a hard look at your money in. Remember this formula : money in > money out. No exceptions. Here's the beauty of this...get yourself some envelopes and put your money in them for different things. Say you bring in $1000 per month, you don't want your total spending to be more than that. In one envelope, write down utilities/rent and other known regular costs like this and put enough money in there monthly to cover. HIde the envelope somewhere safe and never look at it until it's time to pay the bills. In another envelope, write food and put enough money in there for that a month. ONly open it when you are buying food. Keep going with one envelope for each type of expense you have. The KEY TO THIS is that once the money is gone from that envelope, you don't get any more money for that particular item until it's time to fill it up the next month. There's no robbing one envelope to pay another, just do a better job budgeting the next month. You'll learn alot about where your money is going and you wont' overspend this way. This is actually a Dave Ramsey system, or at least I think it is...you may try to buy one of his books or something.

Good luck!

Answer 10

There is no other good way of keeping track, except writing down...

I use a legal pad..

I write down what comes in..

Then i write down what needs to be paid each week
on Sunday I write out my bills for the week

Heres a tip for you if you are a Christian..... write out your tithe to the church first.. for twenty percent instead of ten.......