9 Personal Finance Organizational Tips You Need To Learn Now

Organize your personal finance in 9 steps! We use these monthly to ensure we have all of our finances organized and accounted for.

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Are you where you want to be with your personal finance? Do you know what your net worth is? Do you have any idea whether you have a positive or negative monthly cash flow? If you answered “no” to any of these questions this article is going to help!

Learning how to manage your personal finances takes time and effort! If you are reading articles like this you have already started the process.

There are 9 steps in organizing your personal finance. After following these 9 steps, you should have a very clear picture of what your personal finance looks like. From there you can make the necessary changes to achieve the financial freedom you desire.

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Organize your personal finance in 9 steps! We use these monthly to ensure we have all of our finances organized and accounted for.


1. Collect and Write Down Your Assets and Liabilities

Assets: Write down everything that has value to you. These include checkings, savings, retirement, IRA’s, vehicles, stocks, bonds, annuities, and home equity.

Liabilities: Write down all of your debt. This includes student loans, mortgage, cars loans, personal loans, credit card balances, and any other debt you might have.

If you are just getting started organizing your personal finance, using a pen and paper works great. Keep it simple write everything down with a name and dollar amount. Other options include excel spreadsheet or using a free website like Mint.


2. Calculate Your Net Worth

Many people believe that calculating your net worth is difficult. It’s actually very simple. To calculate your net worth subtract your total debt from your total assets (Assets – Debt = Net Worth).

Again you can do this with a pen and paper, it works great. Excel is another great option because you can easily enter a formula to complete the calculation for you.

If you are looking to organize your finances digitally like we do, check out Personal Capital

3. Create Your Monthly Budget: Income vs. Expenses

The first 2 steps provide a great overall picture of your personal finance. They show how you are doing financially as a whole, which is very important. Equally as important is understanding your monthly cash flow.

Income: List all the income you receive in a month. This includes your hourly wage, salary, bonus, side hustles, side business, etc.

Expenses: Write down all of your monthly expenses. Start with all of your fixed monthly expenses. These include rent, mortgage, insurance, student loan payment, cell phone bill, internet, gym membership, etc. These are the easiest to figure out because they are the same amount each month. Next, write down all of your variable expenses (change from month to month). These include utilities, groceries, discretionary money, donations, gas, etc.

Some expenses might be difficult to gauge how much they are every month. Look back a few months and take the average. You want to have a very clear picture of your monthly cash flow. Figuring out your cash flow and creating a budget is critical in getting your finances organized.

Related: 10 Reasons Why Having a Budget is So Important


4. Calculate Your Overall Cash Flow

This is also a simple equation. To calculate your monthly cash flow take your income and subtract your expenses (Income – Expenses = Monthly Cash Flow). To think of this in simple terms your cash flow is basically your “money in and money out”.


5. Get a Hold of Your Credit Scores and Reports

You know your overall net worth (assets – liabilities) and your monthly cash flow (income – expenses) great start! The next step in organizing your personal finance is getting a hold of your credit score. You have lot’s of free options here. Companies like Credit Sesame, Credit Karma, and My Free Credit Report offer free credit reports.

Your credit score is extremely important in getting the very best rates on loans. Having a good credit score can literally save you hundreds of thousands of dollars over your lifetime. Think of your credit score as an insurance policy to lenders.


6. Evaluate Your Personal Finance

Now that you have your net worth, cash flow, credit reports, and credits scores it’s time to start evaluating. Having the information is great, but understanding it is a different story. It’s now time to start evaluating your personal finance in detail.

Net Worth

Your goal with your net worth should always be in the positive. If you have more assets than liabilities you have a positive net worth, congrats! If your net worth is negative, it’s a good wake-up call to get your finances in check. Knowledge is power. Now that you know your net worth set some obtainable goals to increase it.

Cash Flow

Your cash flow should be a positive number, this is very important. If you have a negative cash flow you are bleeding money from your accounts. From time to time, you will have a bad month where your expenses out weight your income. If your goal is financial freedom you can’t let this happen very often.

Always shoot to have a positive cash flow every month. Be sure to include any money you are investing or putting into retirement accounts as an expense. This is money that is not liquid and you will not be able to use in the near future.

The entire premise of knowing your cash flow is maintaining a budget and grasp on your financial situation. In tracking your expenses you will have a clear picture of what your biggest monthly expenses are. You will also see where you are overspending and be able to adjust.

Savings (liquid asset)

Do you have an emergency fund? If you answered “no” then you need to get on it. Life is unpredictable and things are going to happen. Things like car repairs, surgeries, and death’s in the family are going to happen. Having an emergency fund prepares you to deal with those situations financially. The last thing you want to worry about in an emergency is “how am I going to pay for this”.

How much of an emergency fund you need varies. The typical rule of thumb is at least 3 months of living expenses. Ideally, you would have more than 6 months of living expenses saved up.

Credit Report

Go through your credit reports thoroughly. Understand what is being reported and why. Errors do happen in credit reports and correcting those are important. Contact the credit bureau directly to make them aware of the error so they can get started in correcting it.

Negative entries on your credit report will stay active for up to 7 years. After the 7 years are up the negative entries will be removed from your credit report.

Credit Score

Compare your credit score to the graph below from Cafe Credit. If your credit score is lower than you like read our 7 Easy Habits to Increase Your Credit Score to Excellent article.


7) Create Monthly and Yearly Budget

Once you have gotten this far you should know exactly where you stand with your personal finance. Now that you know where you are you can start planning on where you want to be.

This seems to be the hardest step for most people. If you truly want to get your finances organized a budget is a must. A budget is a plan for your money. You either have to tell your money what to do or it will leave rapidly.


8. Get Motivated

Ask yourself the honest question “why do you want to organize your finances?” What is your purpose and motivation behind learning more about your personal finance?

Figure out the real reason why getting your personal finance organized is important to you.  Once you have your purpose getting motivated will become much easier. Set goals, stick to your plan, and go after it!

Related: How to Achieve Financial Freedom in 10 Years


9. Ongoing Review

After completing steps 1-8 it’s important to continue to review. Set a time each month to check on your finances. If revisions need to be made, make them. Continue to stay informed on what is going on in your financial life.

Don’t fall back into your old ways after learning your financial situation. Mistakes will be made and that’s okay, get back up and start over again. It might be frustrating at first, but once you get a system in place it’s extremely rewarding.

It’s also a great habit of doing a thorough review of your financial situation on a yearly basis. Compare your net worth from one year to the next, hopefully, you are seeing it grow. Compare your monthly budget from year to year as well. This is a great way to make sure you are always living under your means.


Final Thoughts

We have gotten where we are today by having a clear plan and always reviewing our situation monthly. It’s actually really hard for us to imagine not being financially organized, it’s scary.

If you are looking for a digital way to track and organize your finances try out Personal Capital! We LOVE our free account and highly recommend them. If you’re not as tech-savvy a pen and paper always works wonders.

Now that you have the knowledge, it’s time to take action! Get your personal finances organized today!


What are you personal finance goals?

What motivates you to grow your wealth?



Kelan is a born entrepreneur! While in college studying business and finance Kelan was able to grow his e-commerce business to over $50,000 a year. After being an Insurance Salesman, UPS Driver, and Jail Deputy Kelan has come full circle with his burning desire to be 100% self-employed. Kelan currently runs The Savvy Couple full time with a passion for helping others get money $avvy.

44 Replies to “9 Personal Finance Organizational Tips You Need To Learn Now

    1. Same here. If we didn’t learn this from our parents we learned most of it in college.

      So glad to have started organizing our finances so early on in life. It’s allowed us some incredible freedom as we get older.

  1. I’m a very organized person and frugal by nature. I’ve always been good at self control and saving when it comes to money. In all honesty though I have trouble understanding finances and where I could do better. This article was very insightful and helpful. thank you

  2. Thank you so much for sharing I can really use the tips you post so I am truly grateful for you knowledge and openness to share.

  3. I totally wish I had the kind of financial life to be able to question my standing but I know it all too well and it is not good and it is not easily solvable or even something I can prioritize right now. I’m sure these tips are fantastic for regular folks whose lives aren’t marred by PTSD and stuff. You sound like you really know what you are talking about.

    1. Elizabeth, sorry to hear you are dealing with PTSD in your life. I am sure that can be VERY challenging. If these seem too complicated or difficult at this time try focusing on something smaller like creating an Emergency fund. Stack away $1,000 to help when life throws something at you like a car repair.

      Looking for ways we can help, let us know!

  4. I’m motivated by money. Haha it sounds terrible because everyone says “I want to make a positive change in the world” or “I want to disrupt industry XYZ”. Honestly, I just want to make money, and then I’ll figure out what I do when I get there. Maybe once I’m completely financially free I’ll start a space exploration company 😉

  5. I think your last step (the on-going review) is the perhaps the most important. Too many people think that sticking to a budget means not making any adjustments. There’s almost always room for improvement no matter who you are. Great piece!

    1. Totally agree! We adjust our budget every month depending on things coming up I.E. birthdays, vacations, car repairs etc.

      We also use the mindset that there is always room for improvement. Every 3-6 months we call all of the companies we pay bills for and negotiate better pricing.

    1. Nice! Hopefully, that article helps too. Glad that credit scores are not too complicated. Once you get the general understanding of what makes your credit score it becomes easy to monitor and improve it.

  6. It’s really important to have a financial plan especially if you’re tired of living from salary to salary. Learning how to save is not that difficult. A budget that you can follow can definitely help.

  7. Great article. Ever since I became a single mom, I’ve made a habit out of creating and readjusting my monthly budget. It’s very important to monitor your finances and your credit. Scary situation: someone had a $5000 credit card in my name. Every since I’ve been checking my credit every day!

  8. This is a really great list for those looking to get a hold of their finances! My husband and I are looking to revise our budget and there’s a few things on here that could help us too! Thanks!

Let the discusion begin!