The time and energy we spend procrastinating often far outweighs the time it takes to just get the task done. Each of us knows this and yet we complain about not having enough time. Time isn’t what we need; all we need is a little focus!
Today I want to look at two areas that tend to cause people a lot of unnecessary worry and look at ways to mitigate those concerns. It’s time to get organised; it's time for some financial housekeeping.
Your Paperwork
Having a system for storing your financial and personal records can help you to be more organised around your finances. Disorganised paperwork can be an unnecessary source of stress and yet putting a filing structure in place can be one of the easiest things you will ever do. Imagine how good it would feel to get organised? No more looking in kitchen drawers, paper piles or shoeboxes. There may even be a nice surprise in the form of an old bank deposit book or share certificate you had forgotten about.
Sorting your paperwork has nothing to do with numbers; it is merely a filing exercise so begin by gathering all your paperwork, documents, correspondence, etc so that everything is in one place. Now all you need to do is start filing, it's that easy. How you organise your records is your choice but here are some suggestions if you need them:
In the first folder, place all your utility bills e.g. electricity, gas, phone, garbage documents, your house insurance documentation and anything related to where you live (excluding your mortgage). I usually find it easier to put the most recent bill at the front of the file but use whatever system works for you.
Into your second folder, file your bank statements, your mortgage correspondence, your credit card bills and any other savings and loans related documentation. You may want to keep this folder locked away as it contains sensitive information.
Into the third folder, place everything else e.g. your tax related documentation (i.e. P45s, P60s, P21s and medical expenses claims), documents related to your car tax and car insurance, etc.
Your Tax Returns
If you are self-employed and have questions about your tax affairs, then now is as good a time as any to get the information or advice you need. As a self-employed person you must pay Preliminary Tax (i.e. your estimate of your income tax payable) by November 1st each year so make sure you factor this into your cashflow and you must file your 2009 tax return by October 31st 2010. You can file online or you can file on paper; for more information please visit the Revenue’s website at http://www.revenue.ie/en/business/self-assessment.html or telephone your local tax office. If you are a PAYE worker with additional sources of income (e.g. rental income, interest income, etc.) then you are also obliged to file a tax return.
Http://www.citizensinformation.ie/categories/employment/types-of-employment/self-employment/self-employment-as-an-individual is a very informative website for self employed people and for more information on Preliminary Tax please visit http://www.revenue.ie/en/tax/it/leaflets/it10.html#section4.
Whilst October may be five months away you have everything to gain by taking action sooner rather than later. Just making one phone call today or dealing with some paperwork is progress. So be kind to yourself and choose the least stressful route, you will feel so much lighter and free.....