Organizing your finances can be a daunting task. And because of your fears, you’ve been avoiding the  process for quite some time. But it must be done if you desire to achieve the financial freedom you’ve been  dreaming of. Simplicity is the key. Here are a some big steps that’ll help you create a clear action plan:

 1. Get Organized

Do you have piles and piles of old statements from service providers, creditors or financial institutions  lying around? If so, grab a shredder and purge. Doing so should take away some of the anxiety that  accompanies getting your financial life in order. And for those items you need to keep, consider purchasing a small filing cabinet and organizing the documents by type. To determine what to keep, for how long, and what you can toss, check out this chart on USA.gov.

Also, opt-in for electronic statements; they’re usually available and eliminate the frustration that arises when you need to access an important document at the drop of a dime.

2. Conduct an Audit of Your Financial State

Next, you’ll need to assess where you stand financially in order to come up with a feasible plan to take your finances to the next level. To do so, create a comprehensive list of your assets and liabilities. This should include any retirement accounts, securities, income and outstanding debt balances you have on hand, just to name a few.

Once you’ve done so, list any sources of income you receive each month and the estimated expenditures. (For the latter, track account activity for at least one month to get an accurate figure).

3. Implement a Spending Plan

There are tons of software programs to choose from, or you can do things the old-fashioned way. Regardless of which method you use, here are a few key points to keep in mind:

• Every dollar should have a name on it before the month starts. The more stringent the plan is, the higher the chances of compliance.

• If your outputs exceed your inputs, you are left with no choice but to make cuts. Many ignore this pertinent tidbit of advice because they figure as long as the bills are paid, nothing else matters. That’s until a financial emergency arises.

• The plan should be helping you build a cushion, pay down debt and accomplish any goals you have in mind, simultaneously. If not, you won’t be motivated to stay on track.

4. Fund Your Safety Net

Life happens, and you may need a financial infusion to get out of the hole. And there’s no easier way to send your finances haywire than robbing Peter to pay Paul. That’s why the first order of business on your spending plan should be paying yourself to ensure your emergency fund is receiving the boost it needs each month.

5. Create a Debt-Management Plan

Before you decide to aggressively attack the outstanding debt balances, bring any delinquent accounts current. This is important to minimize the damage done to your FICO score for recurring delinquencies, not to mention the excessive late payment fees, interest and penalties. If you’re having a tough time formulating a plan due to limited income, consider making cuts to the variable expenses in your spending plan.

6. Capitalize on Existing Resources

Be proactive and take advantage of all the free tools at your disposal. A host of financial institutions offer online bill-pay as an added perk of being a member or for a small fee. In additional, there are spending tracking features to help you identify problematic areas and make adjustments moving forward. If you’re an AOL user, you’re granted complimentary access to Lifelock’s identity theft protection services, which can protect your personal information from fraud and preserve the financial freedom you’ve worked so hard to achieve. Most importantly, remain vigilant of your account activity at all times to confirm the activity is accurate.

Whether you’re to looking to increase the value of your home for resale or switch things up to give it a fresh new look, your tax refund check provides the opportunity to do so. And no, an extreme overhaul, like the ones you see on HGTV, isn’t required.

Here are some cost-efficient ideas:

Paved Driveway

Tired of saturating your vehicle in dirt each time you leave or return to your home? How about the rocky ride along the way? A paved driveway, comprised of asphalt or concrete, is the perfect solution. You’ll no longer have to step into grass or dirt each time you open the car door, which is especially important if you’re constantly having to tidy up the floors because of dirt being tracked into your home.

New Roofing

Are you constantly forking over cash to contractors to fix that leaky roof? If so, it’s time that you give your home the new roof it deserves. Champion Home Exteriors, which offers expert installation and Advanced Protection® Technology Advanced Protection® on Lifetime single choices, has an array of affordable options to choose from.

Finished Basement

A finished basement makes an excellent addition to any home that could use some extra square footage. It’s ideal for a game room, play area, movie theater, home office or an oversized bedroom, just to name a few. If you’re going to be housing a relative in the near future, a finished basement is also the perfect place to create a mini-apartment for their added privacy.

New Air Conditioning Unit

Is your air conditioning unit on its last leg? Since you have some extra cash on hand, now’s the time to start searching for a replacement. Just be sure to consider additional factors, such as the Seasonal energy efficiency ratio (SEER) and quality of the unit’s components. While it’s tempting to go with the cheapest unit, you could spend much more than you initially anticipated over time, in the form of energy costs and repairs. Energy efficient units may qualify you for Residential Energy Credits. See IRS Form 5695 to learn more.

Mini-Kitchen Remodel

It’s not necessary to invest thousands of dollars to completely overhaul the kitchen. A better option is to freshen up the paint, refinish or replace or the flooring, and swap outdated appliances for energy-efficient models.

If your appliances are not that old, a local expert like Mesa az appliance repair can help fix them and look as good as new.

Upgrade Outdoor Living Space

Adding a screened patio or fence can work wonders for your backyard. And with the right decor, it can quickly be converted from a standard space for the children to play to a stunning space for entertaining guests.

New Garage Door

By installing a new garage door, you will alleviate yourself of manually lifting the door (on outdated models) while adding a new look to the exterior of your home. And you’ll no longer have to get soaked on those rainy days.

Not only will these home improvements will give your home a new look and feel, but you may be able to derive tax benefits on select upgrades. See IRS Publication 530 for additional guidance.

Here’s a problem: you’re at the end of your money and there’s three days left before you’re paid. Where do you turn?

Maybe you’ve been there…I was in this situation in my early days as a financial advisor. It was horrible. Here I was, telling people about how to manage their money, and I was sweating every meeting, just praying that they’d sign on the dotted line. One time I even ran out of gas on the way home and had to search frantically for money under my seats.

There are two solution levels: “Right now” and “Never Happen Again”. Let’s tackle both.

Take Care Of The Problem Right Now

Raid the cupboard – It’s time to get creative on your meal plan. In my “broke days,” if I could get through without buying any food, I was golden. That thing in the freezer that I wasn’t sure whether I could still eat it? Time to find out. Those crackers that are slightly stale in the back of the pantry? They’ll go great with the chicken broth I’m using to make a creative soup.

Find alternate transportation – Heading to work? If you live close enough, it’s time to walk or ride a bike. Walking is—of course—free. The bike? You made an investment in it at one time, but it’s good for your pocketbook and your wallet to dust it off. Live too far away? Explore ride sharing options. Hopefully, your new ride-mate will let you pay for gas on Friday….once you’ve been paid.

Explore Ways To Get Cash – God forbid I had an emergency….. if that happened, I’d attempt to borrow money from relatives for a few days, offering them a good interest rate. If nobody bought (near the end of my rope those people were exhausted from continuously loaning me money, although I always repaid them), I needed to find other ways to get cash. When I’d need cash, none of them were especially attractive, so that’s why I always thought about….

Making sure it “Never Happens Again”

The great part about making mistakes is that they allow you to learn. If you fall forward, it’s not quite so painful.

Build An Emergency Fund – On my personal blog, Stacking Benjamins, I talk about automating my savings as my big money “a-ha.” No matter how painful, putting a few dollars away for a rainy day fund is vital. You had to raid the fund? That’s what it’s there for! Now, go and rebuild.

Sell Your Junk – Clutter, whether it’s in your closet or your mind, creates confusion. If you’re going to focus on ways to earn more money, you’re going to need to clean the slate. Use eBay, a garage sale, or Craig’s List to dump as much access stuff as possible. Use that money to fund your rainy day account.

Build a Better Budget – Ask yourself “what went wrong” this time and fix your budget to avoid that the next time. You needed tires for your car? Why isn’t that built into your plan? Your furnace died? Why don’t have you a strategy for that? Sure, you won’t be able to fix every potential problem, but there are always ways to fix your plan so that you’re more prepared next time.

Ask For a Raise – Studies show that most workers could get a raise if they just asked their boss the right way for more money. You’ll need to come armed with statistics and you’ll also need to prove that you deserve it. What do you do if the boss says no? Look for new work. The quickest way to make it up the ladder is to find a new boss who’s willing to pay you what your worth. Often, that’s a much quicker way to more money than settling for little raises at your current job.

photo: Sharon Hahn Darlin