Everyone wants to have a stress free life, and the first step toward accomplishing this goal is to figure out how to organise your finances.

While it’s impossible to avoid all financial stress, you can reduce your bills, debts, and other obligations so you can spend more time doing the things that matter to you most!

Here are 7 Ways to Organize Your Finances for a Stress Free Life

7 Ways to Organize Your Finances for a Stress Free Life

1) Keep Track of Your Income and Expenses

In order to keep your finances organized, you need to be able to track your income and expenses.

One of the easiest ways to do this is by using an Excel spreadsheet.

Create one with two columns: one column labeled Income and another column labeled Expenses.

Make sure that you enter the date in both columns.

Start adding rows for each month, starting with January of this year on the first row.

Enter your income in the left column and your expenses in the right column.

2) Set Up a Budget

No matter what stage of life you are in, setting up a budget is one of the most important things you can do.

Creating and sticking to a budget will help you reach your financial goals.

First, determine your monthly income by listing all sources of income (e.g., wages, investments, bonuses) and tallying them up.

Next, subtract expenses such as mortgage or rent payments, utility bills, car payments and insurance premiums from your monthly income.

The difference between these two numbers is how much money you have left over each month after paying all of these bills.

3) Set Up a Savings Plan

Saving money is one of the most important steps you can take in organizing your finances. It’s not about how much you save, but rather what you do with your savings.

The best way to get started is by setting up an automatic transfer from each paycheck into a savings account at the same bank that handles your checking account.

This will make saving money even easier because when it’s time to pay bills and withdraw cash, all you have to do is take care of those transactions at the ATM inside your bank.

That leaves more time for cooking dinner or going out on a date! you can take in organizing your finances.

It’s not about how much you save, but rather what you do with your savings.

The best way to get started is by setting up an automatic transfer from each paycheck into a savings account at the same bank that handles your checking account.

4) Invest in Yourself

The best investment you can make is in yourself. It will not only help you live a more stress-free life, but it will also be the keystone of success.

Here are few ways you can invest in yourself:

Create a financial plan that includes your long term goals and how much money you need to save on an annual basis
Save as much money as possible so you can live off passive income .

Do not spend more than what you earn and do not use credit cards unless needed.

If you must, then pay them off right away. Put all your bills into one account and divide them by due dates every month.

If there’s any question about when something is due, mark the date on your calendar so that there is no confusion or missed deadlines.

5) Get Insured

It’s important to know the difference between insurance and investments.

Insurance is designed to protect you from financial loss if something bad happens, like your home catching fire or getting in an accident.

Investments help you build wealth over time and are generally not insured against risk.

There are many different types of insurance policies, such as disability insurance and life insurance, so it’s important to review what kind of coverage you need.

Lastly, don’t forget about your retirement account!

For many people, this will be their most important source of money during their retirement years.

If you want to live comfortably during those years, make sure that you’re saving enough money now by signing up for your company’s 401k plan and opening up a Roth IRA.

6) Manage Your Debt

It is important to stay on top of your debt by paying more than the minimum amount due. This will decrease the interest you pay and will help get you out of debt faster.

If you need help with this, consider using an online service like Mint or You Need A Budget, which helps you track your expenses and manage your money in one place.

You should also have some kind of plan for emergencies so that if something happens, you are not left scrambling to figure things out.

Having emergency funds set aside as well as understanding what types of insurance coverage you have can be really helpful when it comes to preventing financial stress.

7) Review Your Progress

Write a note based off the progress. I organized my finances by creating an excel spreadsheet with all my monthly expenses and how much money I make each month.

I then created two columns, one titled Monthly Expenses and the other titled Monthly Income.

In the Monthly Expenses column, I list out every expense and input how much it costs me per month.

The Monthly Income column lists what I earn in a month from different sources.

Then I subtract my total expenses from my total income and see if I have more left over or less than zero left over at the end of the year.

If there is less than zero, I am spending more than what’s coming in each month and need to adjust accordingly.