The management of financial documents and documents is a daunting task even for the most organized of people. Getting your financial home in order can save time and money, make tax filing less stressful, and ensure that your loved ones have access financial documents in the situation of an emergency.
You should create a system for the storage of your files, whether they are physical or digital. All your documents should be kept in one location. Check your kitchen counters, entryway tables desks for your home office and car trunks, garages and any other places you keep papers. Discard junk mail, catalogs, expired coupons and bill inserts. Keep receipts and product guides for major purchases.
Sort your paper documents by the category. For example, bank statements, can be sorted by date, and then categorized into folders based on kind of account (such as investments or credit card accounts). The organization of your files by category will help you locate the information you require when you require it. If you have several accounts, like “auto” or “home” Consider using subfolders. You can also sort them by year. This is particularly useful in the event of tax season and audits.
After you’ve divided your paperwork into years and subdivided them, make sure to review the old documents and get rid of them in accordance with legal retention guidelines. Also, you should back up your files on a regular basis to reduce the risk of losing important information. Consider using a document management program in the event that you share files with colleagues.