{"id":7760,"date":"2020-07-11T01:24:36","date_gmt":"2020-07-11T01:24:36","guid":{"rendered":"https:\/\/www.thebossyhouse.com\/?p=7760"},"modified":"2020-11-13T05:05:34","modified_gmt":"2020-11-13T05:05:34","slug":"hidden-costs","status":"publish","type":"post","link":"https:\/\/www.thebossyhouse.com\/hidden-costs\/","title":{"rendered":"The Hidden Costs of Disorganization"},"content":{"rendered":"<p><span style=\"width: 100%;\"><img loading=\"lazy\" decoding=\"async\" alt=\"woman finances computer\" width=\"600\" height=\"900\" title=\"The Hidden Costs of Disorganization with Money\" data-id=\"7767\" src=\"https:\/\/www.thebossyhouse.com\/wp-content\/uploads\/2020\/01\/hiddencosts.png\" style=\"\" scale=\"0\"><\/span><\/p>\n<p dir=\"ltr\">If you\u2019re in dire need of financial organization, I\u2019m so glad you\u2019re here. We&#8217;re talking about the hidden costs of disorganization in your finances.<\/p>\n<p dir=\"ltr\">You might be thinking to yourself, \u201cI\u2019m not in too bad of shape. I\u2019m not broke anymore&#8211; is my lack of a system that big of a deal?<\/p>\n<p dir=\"ltr\">Wellllll, let\u2019s talk about it!<\/p>\n<p dir=\"ltr\">I help women<strong> take charge of their finances by creating a system<\/strong>. SYSTEMS are what I believe can keep you on track and help you meet your financial goals.&nbsp;<\/p>\n<p dir=\"ltr\">How do you know if your lack of organization is costing you money?&nbsp;<\/p>\n<h2>Hidden Costs of Disorganization: Examine your systems&nbsp;<\/h2>\n<p><span style=\"font-family: Raleway; font-weight: 300;\">What systems do you have in place for managing your money? If you&#8217;re thinking &#8220;um&#8230; what systems?&#8221; then you probably need to read this whole post, watch a few of The Bossy House videos, download the templates, and get to planning!<\/span><\/p>\n<p><span style=\"font-family: Raleway; font-weight: 300;\">There are dozens of possible systems you COULD put in place to counteract the hidden costs of disorganization.&nbsp;<\/span><\/p>\n<p><strong>RELATED<\/strong>: <strong style=\"outline: none;\"><span style=\"display: inline-block; text-decoration: underline;\"><\/span><\/strong><a href=\"https:\/\/www.thebossyhouse.com\/trick-yourself\/\" style=\"outline: none;\" target=\"_blank\" rel=\"noopener noreferrer\"><strong style=\"outline: none;\"><span style=\"display: inline-block; text-decoration: underline;\">Trick Yourself Into Spending Less Money<\/span><\/strong><\/a><\/p>\n<p><span style=\"font-family: Raleway; font-weight: 300;\">Here are questions to ask yourself about your systems:&nbsp;<\/span><\/p>\n<ul>\n<li style=\"\"><span>Where do you put bills when they come in the door?<\/span><\/li>\n<li style=\"\"><span>Do your bills ever surprise you? Do you know exactly how much they are every month?<\/span><\/li>\n<li style=\"\"><span>Are your bills paid through auto-pay or bill pay? (And do you know the difference?)<\/span><\/li>\n<li style=\"\"><span>How much do you send to savings each month and is that payment reliant on your memory?<\/span><\/li>\n<li style=\"\"><span>If you&#8217;re in debt, why?<\/span><\/li>\n<li style=\"\"><span>Do you have your bills calendared out so you never miss one?<\/span><\/li>\n<li style=\"\"><span>Do you know what your typical cash spending amount is each month?<\/span><\/li>\n<li style=\"\"><span>How many times are you looking at your bank account each month?<\/span><\/li>\n<li style=\"\"><span>What is the dollar amount of your goals?&nbsp;<\/span><\/li>\n<\/ul>\n<p><span style=\"font-family: Raleway; font-weight: 300;\">If you don&#8217;t have any of these questions easily answered, time to put some systems in place!<\/span><\/p>\n<h2>If your systems are broken, what are the hidden costs of disorganization?&nbsp;<\/h2>\n<p><span><img loading=\"lazy\" decoding=\"async\" alt=\"finances\" width=\"1144\" height=\"766\" title=\"The Hidden Costs of Disorganiazation\" data-id=\"7770\" src=\"https:\/\/www.thebossyhouse.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-25-at-4.19.17-PM.png\" style=\"\"><\/span><\/p>\n<p dir=\"ltr\">You might not FEEL the effects of not having a system. It might not be that big of a deal to you since you can afford your life\u2026&nbsp;<\/p>\n<p dir=\"ltr\">But where\u2019s the hidden cost?&nbsp;<\/p>\n<p dir=\"ltr\">The hidden costs of disorganization are late fees, overdraft fees, lots of mystery charges in your bank account, and penalties for accounts being cancelled.&nbsp;<\/p>\n<p dir=\"ltr\">Sometimes you miss the notices from your insurance company, and your policy gets cancelled&#8211;with a hefty cost to sign back up (this happened to me once). Sometimes you ignore parking tickets and they pile up, then get late fees on top of the parking ticket.&nbsp;<\/p>\n<p dir=\"ltr\">If you can afford the late fees, as in you don\u2019t go broke with late fees, who cares?&nbsp;<\/p>\n<p dir=\"ltr\">Well, add those up over a year and you get hundreds of dollars you\u2019re spending just because you don\u2019t have a system in place.&nbsp;<\/p>\n<p dir=\"ltr\">AND the lack of a system actually takes MORE time than not having one.&nbsp;<\/p>\n<p dir=\"ltr\">So there&#8217;s a FINANCIAL cost as well as a TIME and ENERGY cost. Why spend all of that just so you don&#8217;t have to put a system in place?<\/p>\n<h2>Timing Issues Cost Money<\/h2>\n<p dir=\"ltr\">The other issue you might be having is timing.&nbsp;<\/p>\n<p dir=\"ltr\">Are you getting surprised by big bills? You feel pretty good about yourself affording your life and then along comes the tuition bill, and (even though it\u2019s not a surprise) it derails you for two months.&nbsp;<\/p>\n<p dir=\"ltr\">In this case, you don\u2019t have a sense of your TRUE cost of living.&nbsp;<\/p>\n<p><span><img loading=\"lazy\" decoding=\"async\" alt=\"financial planning\" width=\"1334\" height=\"1058\" title=\"Hidden Costs of Disorganization\" data-id=\"7773\" src=\"https:\/\/www.thebossyhouse.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-25-at-4.15.56-PM.png\"><\/span><\/p>\n<p dir=\"ltr\">Are you doing things like shorting yourself to pay down debt and then putting important essentials on the credit card anyway because you don\u2019t have enough spending money at the end of the month?&nbsp;<\/p>\n<p dir=\"ltr\">Leaving yourself less money in your spending account is a good idea. Not doing it the right way means you have no idea how much you need.&nbsp;<\/p>\n<p dir=\"ltr\">This is a typical timing issue. You need a system to set up your money so these timing issues don\u2019t happen.&nbsp;<\/p>\n<h2>The long term effects of not having clear goals<\/h2>\n<p dir=\"ltr\">Another costly mistake is not setting goals and put a dollar amount on them.&nbsp;<\/p>\n<p dir=\"ltr\">If you\u2019re feeling great living the way you\u2019re living without too much trouble, why bother? WELL, if you had an additional $200 a month that you\u2019re letting slip out the door with late fees and leftover subscriptions, then you are just letting money go every month.&nbsp;<\/p>\n<p dir=\"ltr\">Add that to the dollars you\u2019re not putting toward your goals FIRST.&nbsp;<\/p>\n<p dir=\"ltr\">Are you saying \u201cat the end of the month if I have left over I\u2019ll put it to savings or debt?\u201d That means that you are probably putting FAR LESS to goals than you should be and COULD be.&nbsp;<\/p>\n<p dir=\"ltr\">You should create a system that estimates your spending and puts ALL THE REST to savings or debt FIRST.&nbsp;<\/p>\n<p dir=\"ltr\">That way, you\u2019re guaranteed to do it, and long term it meets your goals every single month you\u2019re working toward your goals.&nbsp;<\/p>\n<p><span>Check out the <\/span><span><a href=\"https:\/\/www.thebossyhouse.com\/trick-yourself\/\" target=\"_blank\" style=\"outline: none;\" rel=\"noopener noreferrer\"><span style=\"display: inline-block; text-decoration: underline;\">free live training on tricking yourself into spending less mone<\/span><\/a><span style=\"display: inline-block; text-decoration: underline;\">y<\/span>&nbsp;<\/span><span>and get your spending under control!<\/span><\/p>\n<h2>My solution: get a system<\/h2>\n<p dir=\"ltr\">First up, you\u2019ve got to decide how much is going where every month.&nbsp;<\/p>\n<p dir=\"ltr\">You\u2019ve got to add up your bills, figure out how much your typical cash spending each month is, and make your plan. So: calendar your bills. Decide which pay periods are going to pay each of your bills.&nbsp;<\/p>\n<p dir=\"ltr\">From there, you will have a leftover amount after your bills are paid. That is NOT SPENDING MONEY.&nbsp;<\/p>\n<p dir=\"ltr\">That is money for&nbsp;<\/p>\n<p dir=\"ltr\">Debt, Savings, Spending AND Emergencies, Big annual bills like tuition, Vacation, Christmas, Birthdays, and of course, Beyonce tickets.<\/p>\n<p dir=\"ltr\">So that leftover money is not left over. <strong>It has a job to do. <\/strong><\/p>\n<p dir=\"ltr\">My system uses a \u2018zero based budget,\u201d which I like to call a <strong>down to zero budget.<\/strong> It helps you determine EXACTLY how much you need to afford your life, and then helps you designate it all for a purpose. Every dollar that comes into your account should have a purpose, and a SYSTEM sets that purpose up to be put on autopilot every month.&nbsp;<\/p>\n<p dir=\"ltr\">Once you have a sense of how much your bills are, now you need to figure out how much your CASH spending is each month.&nbsp;<\/p>\n<p dir=\"ltr\">This is groceries, yoga, lawn guy, lattes. Get very clear on this amount.&nbsp;<\/p>\n<p dir=\"ltr\">And If you can get a good weekly\/monthly estimate of spending, you can subtract that from the leftover amount.&nbsp;<\/p>\n<p dir=\"ltr\">How much is left? If, after bills and monthly cash spending, you have $600 a month to spare, you can use that for the rest of the list.&nbsp;<\/p>\n<p dir=\"ltr\">Put a little away in an account to save for Christmas and vacation. Don\u2019t put that on the card!<\/p>\n<p dir=\"ltr\">And then decide how much goes to emergency savings, and debt. Use all the rest of that money for your goals and your life.&nbsp;<\/p>\n<h2>Automation helps you avoid the hidden costs of disorganization<\/h2>\n<p dir=\"ltr\">I automate my enter system so I never have to rely on my own memory.<\/p>\n<p dir=\"ltr\">So money comes into my account, then it goes automatically to everywhere else. What\u2019s left in my spending account is for cash spending only.&nbsp;<\/p>\n<p dir=\"ltr\">This way, I don&#8217;t have the option of overspending, and I&#8217;ve met my goals first thing after I get paid.&nbsp;<\/p>\n<p dir=\"ltr\">You can&#8217;t do this system without a lot of intentional planning, but if you download my templates below you can get started with some financial planning that will help you put everything on autopilot!<\/p>\n<h2 style=\"text-align: center;\">Get this set of <strong><span style=\"color: rgb(25, 145, 212);\">financial planning templates<\/span><\/strong><span style=\"color: rgb(2, 205, 218);\">&nbsp;<\/span>to get started on your budget journey!<\/h2>\n<p><span style=\"width: 100%;\"><img loading=\"lazy\" decoding=\"async\" alt=\"\" width=\"794\" height=\"1123\" title=\"Budgeting system for financial freedom\" data-id=\"5290\" src=\"https:\/\/www.thebossyhouse.com\/wp-content\/uploads\/2019\/03\/financial-mock-ups-and-consent.png\" style=\"\" scale=\"0\"><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are significant hidden costs to financial disorganization, and those include lost time, money, and energy. Find out if you are in need of setting up some systems and get some ideas for taking charge!<\/p>\n","protected":false},"author":1,"featured_media":7773,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[197,127,188],"_links":{"self":[{"href":"https:\/\/www.thebossyhouse.com\/wp-json\/wp\/v2\/posts\/7760"}],"collection":[{"href":"https:\/\/www.thebossyhouse.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thebossyhouse.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thebossyhouse.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thebossyhouse.com\/wp-json\/wp\/v2\/comments?post=7760"}],"version-history":[{"count":12,"href":"https:\/\/www.thebossyhouse.com\/wp-json\/wp\/v2\/posts\/7760\/revisions"}],"predecessor-version":[{"id":10495,"href":"https:\/\/www.thebossyhouse.com\/wp-json\/wp\/v2\/posts\/7760\/revisions\/10495"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thebossyhouse.com\/wp-json\/wp\/v2\/media\/7773"}],"wp:attachment":[{"href":"https:\/\/www.thebossyhouse.com\/wp-json\/wp\/v2\/media?parent=7760"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thebossyhouse.com\/wp-json\/wp\/v2\/categories?post=7760"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thebossyhouse.com\/wp-json\/wp\/v2\/tags?post=7760"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}