Thursday, February 6, 2014

Organizing Your Financial Life

Home organization isn't one of my strengths. This past weekend found me cleaning my coat closet under the stairs.  I dug out a HUGE number of these accordion files.  

I have in the past prided myself on how I have kept my financial life organized.  See all those files.  They date back to at least 1997and go up to 2007. These files contain our financial records. These were all taking up valuable space in my closet.

However last year, I didn't do so hot in this area.  I realized this as we were doing the taxes when I was fumbling through a shoebox of stuff. My filing wasn't cutting it. This is one area where it pays to be organized.

Can't find the warranty?  pay big bucks to get item fixed or replaced.

Don't have a designated area for bills to land once they arrive -You have late bills or even worse unpaid bills

Looking in a box for a receipt you know you have is a major time waster

It is not too late to get organized.  Keep it simple.  Come up with a plan.  This is one place where vigilance pays.

Have a place where bills are put to pay that you don't have to dig through other papers to find.
Have a place where you file the bills/receipts you will use for tax purposes
Set up phone reminders for bills that don't come through the mail
Sit down when you are paid and pay the bills

LASTLY, go ahead and shred those files that over 7 years old.  Don't be like me. 

Life as Mom had a great post on setting up a financial files. This is the system that I was using before last year.

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