Even the most organized individuals may find managing documents and finances a difficult task. Keeping your financial house in order can save you time and money, making filing taxes less stressful and ensure that your loved family members have access to crucial financial documents in the recommended you read situation of an emergency.
You should create a system for storing your files, no matter if they are digital or physical. Start by gathering all of the papers you have in one place. Examine your kitchen counters, entryway tables desks for your home office and car trunks, garages and other places where you store papers. Toss junk mail, catalogs, expired coupons and bill inserts. Keep receipts and product manuals for large purchases.
Sort your paper documents by the category. For instance, bank statements can be sorted by date and then into folders for each type of account like investments or credit cards. Organizing your files by category will help you locate the information you need when you need it. If you have several accounts, such as “auto” or “home” think about using subfolders. You can also sort by year. This is especially helpful in the event of tax season and audits.
Once you’ve categorized your paperwork and sorted it into years, make sure to review and discard old files, based on the guidelines for legal retention. You should also back up your files regularly to reduce the risk of losing important data. If you’re sharing files with coworkers Consider using the use of document management software to streamline your entire process.