How to Manage Documents and Finances
Even the most organized of people are able to find managing their financial documents and paperwork a challenging task. Getting your financial home in order can save you time and money, making tax filing less stressful and ensure that your loved ones have access financial documents in the event in the event of an emergency.
If you’re storing physical or digital files, you should set up an organization that is suitable for you. Start by gathering all of the papers you have in one place. Look over your kitchen counters entryway tables, home office desks cars, garages, and wherever else you gather papers. Throw away junk mail, catalogs, and expired coupons. Keep receipts and guides to major purchases.
Sort your paper documents according to categories. For example, bank statements can be sorted by the date of the statement, and then divided into folders based on the kind of account (such as credit card accounts). The organization by category helps you find what you’re looking for when you need it. Consider subfolders if have several accounts, like „auto“ and „home.“ You can also organize your files by year, which is especially helpful in tax season or audits.
Once you’ve classified your paperwork and broken it into years, make certain to review and delete old files and follow legal retention guidelines. Make sure to regularly backup your files to avoid the risk of losing vital information. Consider using a document management program when you share files with colleagues.