Do you have problems finding a bill when you need it?

Organising your finances can be a very daunting task, especially if everything you have is currently in a shoebox.  However, it can be easy to organise your finances with these 3 steps.

A lever arch folder is a necessity if you are going to keep all your paperwork in one spot that you can look through quickly when needed.  So get yourself to a Officeworks, Big W or any cheap stationery store and buy the following:-

• Lever Arch Folder
• Tab Dividers, at least 12
• A5 envelopes

Your first task is to label all of the Tab Dividers.  I recommend the following categories as a minimum.  Once you are organised you will probably find other categories specific to you, add them in as you move forward.

• Bills to Pay
• Bank Statements
• Credit Card Statements
• Electricity, Gas & Phone
• Insurance
• Home (ie Rates)
• Health & Fitness
• Car
• Payslips & Superannuation
• Investments
• Tax Receipts
• Proof of Purchase

Place your Tab Dividers into your Lever Arch Folder and label the folder with the current tax year.  Australian tax years run from 1 July to 30 June.

Next task is to hole punch 9 A5 envelopes and place one at the beginning of each Tab Divider from Electricity, Gas & Phone to Proof of Purchase.  The A5 envelopes are where you place any small receipts that would normally get lost.

Bills to Pay is where you file all your bills that are waiting to be paid.  Once they are paid, move them to their relevant Tab Divider.

Tax Receipts is where you place any invoice or receipt that you can claim on your tax each year.  Stationery needed for your job that you paid for, coffees you shouted at a business meeting (that weren't reimbursed by your employer) and professional membership fees.  Then when you complete your Tax Return, all of these deductions will be easy to find.

Proof of Purchase is where you should place any invoices or receipts for goods that have a warranty.  Computers, furniture, whitegoods and electrical are all items that usually come with a warranty and can often break down or need repairs.  If all of your Proof of Purchase receipts are easy to find there won't be any problems if something goes wrong.

Your last task is then to file away all of your invoices and receipts that are currently hiding in that shoebox. 

Organising your finances really is that easy and you can easily do it on a rainy Saturday afternoon.  Getting everything organised now will make it easier when your accountant asks the question, Do you have any deductions this year?  You never know, organising your finances may even help you get a bigger tax refund.

If this inspires you to continue organising, read our Spring Clean Money Tip for some other great tips.