How Being Prepared Saves Me Money

A little preparation can go a long way when it comes to personal finances. It isn't always the most knowledgeable but the most prepared person who makes the best decisions with their money. From taxes and food to mail and various personal accounts, your preparation when it comes to these areas can greatly affect whether you are successful in keeping their related expenses to a minimum.

Here are a few ways that I was able to improve my ability to be better prepared when keeping certain personal finance information in order and even save a little money in the process.

Saving Statements

I recently had a situation in which I was double billed by my security software company due to a discrepancy in my billing information. I was immediately able to go back to last year's credit card statement in order to prove my case quickly and efficiently to the customer service representative from the software company. She immediately removed the erroneous charge.

Because I save billing statements from utility companies, credit cards, banks, and the like, it typically makes life much easier when I must call with questions or dispute a charge. However, it's important to note that with saving such statements comes an added element of risk. I always ensure that when I save these items, that they are devoid of any pertinent personal or financial information, and if such information is contained upon them, that it is removed or sufficiently blotted out to reduce this risk of it falling into the wrong hands.

Taxes

I hate dealing with income taxes each year, but I hate paying someone to do it for me even more. Either way you look at it though, whether you're doing your own taxes or having a professional do them for you; it can behoove you to be prepared with sufficient documentation to take full advantage of any tax breaks available to you.

Remember, just because a tax preparer may be a trained professional, it doesn't make him a wizard who magically knows everything about your personal finances. The better prepared you are, and the more information you can provide him with, the more you may increase his ability to provide you with tax savings. Having your ducks in a row can also make your life much easier in the event that you are audited.

Such documentation may include receipts for energy efficient appliances or home modifications, teaching supplies, business expenses, and related expenses. I also ensure that I keep records and receipts I receive from making charitable donations. And I make notes or save documentation regarding untaxed income I've received throughout the year to help jog my memory when it comes time to prepare my taxes. This saves me from having to dig through my files or contact those I've done business in order to obtain such information.

Food

A little preparation can go a long way in saving both time and money when it comes to your grocery shopping. Making a list ahead of your shopping excursion can help deter you from impulse buys and keep you from forgetting items along the way. I've seen people who don't use lists slowly stumbling their way along the isles at the grocery store, or talking on their cell phone to family members, asking them if they need milk or if they're out of eggs at home.

Rather than playing a guessing game, I keep a list available in the kitchen, upon which I can jot a item here and there when I realize we're in need. I've known people who have to continuously make runs to the grocery store for extra items because they don't use a list even though they've spent several hundred dollars on their weekend shopping trip. This can be costly not only due to extra gas and wasted time in making such trips, but because such trips often don't involve much comparison shopping or the use of coupons to help save money.

Snail Mail

Snail mail might not seem like it would cost us much money in this day and age, but you could be surprised. I know a family who has piles of mail scattered about their home in which numerous bills seem to be lost or forgotten. These lost bills then become overdue and in turn lead to future bills -- of course with late fees added -- which may or may not be opened and answered if they are not lost in the mess that abounds. And if they are lost, then someone must in turn take time out of their day to contact the billing party in order to convince them to continue service until the bill is paid.

Opening mail and dealing with it -- whether that means answering it, tossing it in the trash, shredding it, or paying (or at least organizing) the enclosed bills -- can save you time, trouble, and money. A couple of minutes each day is all it takes me to open, sort, file, or read the mail. Doing so as soon as I get it and before it gets lost in the shuffle means the difference between easily handling important matters before it's too late and having the additional trouble of dealing with them later on.

More From This Contributor:

Increasing Productivity, Increasing Profits

Valuable Financial Lessons from Mom and Dad

How Self-audits Can Improve Productivity

Disclaimer:

The author is not a licensed financial or tax professional. The information provided in this article is for informational purposes only and does not constitute legal, tax or financial advice. For such advice, readers should consult a licensed financial or tax advisor. Any action taken by the reader due to the information provided in this article is solely at the reader's discretion.