The No Sweat Financial Filing System
Most people don't know which financial documents to keep and which to toss-so they save it all.
Solution: A fast, flexible filing system based on keeping ONLY the documents you need, in big folders (which you can subdivide on an as-needed basis). For now, focus on broad categories-"and set up your 2011 files, while you're at it.
Supplies: Two flat-bottomed, expandable hanging folders; manila file folders; labels; about one hour-and a good friend. Put on a scary movie, popcorn, then...
What to KeepStash the following papers in individual folders, labeled as follows:
What to Shred
It's OK to ditch the following, unless you need them for business tax purposes or to track your own expenses.
Most people don't know which financial documents to keep and which to toss-so they save it all.
Solution: A fast, flexible filing system based on keeping ONLY the documents you need, in big folders (which you can subdivide on an as-needed basis). For now, focus on broad categories-"and set up your 2011 files, while you're at it.
Supplies: Two flat-bottomed, expandable hanging folders; manila file folders; labels; about one hour-and a good friend. Put on a scary movie, popcorn, then...
What to KeepStash the following papers in individual folders, labeled as follows:
- Personal tax items
- Business-related tax items
- Bank statements
- Credit card statements
- Retirement account statements
- Investment account records
- Insurance policies: life, health, home, car, etc.
- Home: mortgage and property tax docs; repair records
- Medical: bills, claims, records, prescriptions
- Car: title, CAA membership, repair records
- Kid stuff: tuition receipts, permission slips, calendars
What to Shred
It's OK to ditch the following, unless you need them for business tax purposes or to track your own expenses.
- Paystubs
- Utility, heat, cable, phone bills
- Personal credit and charge card receipts
- Rent bills
- ATM, grocery, gas receipts