In order to effectively reduce your debts and fix your credit history, you are going to have proper organization and effective ways to keep track of your financial records. To make an effective filing system, experts recommend alphabetizing your relevant documents by subject or category. But don't make the mistake of having too many or too few categories. A dozen broad categories should be the maximum in any filing system. Therefore, a sample file index might include categories for:
Banking records (including checking and savings accounts)
Bills paid (where you file regular monthly expenses)
Budget (for itemized listings of all your expenses, income and assets)
Credit cards (useful for storing receipts, statements and contracts)
Insurance (auto, health, life and property insurance records)
Investments (such as 401(k) and mutual fund reports)
Mortgage
Receipts
Taxes
Once you've gotten your files labeled, you may wonder how long you should keep certain financial documents. As a rule, you should keep old tax records for at least seven years because that's how far back the law allows the IRS to go when it wants to audit you. You should also hang on indefinitely to your stock, bond and mutual fund statements - mainly because if you sell any of those investments later, you may need to demonstrate the cost basis of your investment to the IRS. However, you don't need to keep those prospectuses that mutual fund companies mail you each quarter, so you can safely toss those.
Maintaining Your Filing System
Once you've got a working system, of course the final step is to stay on top of your paperwork, so that it doesn't spiral out of control again. Experts say you should resist the urge to have general mail files - like the all-purpose "in" and "out" baskets that seem to occupy almost every home office and work desk space. Instead, create a paper-flow system that instantly tells you what you're supposed to do with the mail that's held there.
Once you weed through your files, purging unnecessary paperwork and reducing the amount of piles you have stacked up, chances are you'll be a lot clearer about your finances and certainly better organized. What's more, if you take a few minutes each day to tackle your paperwork, you'll save yourself many hours - if not days - of having to wade through a morass of papers later in the year when you're trying to find some important document. This is particularly true when tax time rolls around. Imagine how great it would feel if you didn't have to go sifting through old piles of paper trying to justify all your tax deductions. Instead, you could simply turn over to your accountant or to a paid tax professional a nice, neat file of well-organized receipts and records.
How To Filing System
Is your desk disorganized? Do you stack papers everywhere because you don't know what else to do with them? This article will provide you with some useful information that will help you develop an organized filing system with file folders. Specifics may vary from person to person; however, the following information includes helpful and important guidelines from which everyone can benefit.
Our lives are extremely hectic! By the time we finish juggling work, kids, homework, housework and spouses, well, there just isn't time for anything else. It's no surprise that most people are disorganized - they can't seem to find the time to file on a regular basis.
There's always that one spot that you use as a catch-all. It could be a corner of your desk at work, your kitchen counter or the "junk" drawer. These are the places you put your "stuff" - the stuff that you have no idea what else to do with it but you know you're probably going to need it at some point (like right after you throw it away). This is where you toss your keys, your mail, your kids' homework, the bills that are due and the ones you're going to pay later, that report from work that was due yesterday - you name it!
Now, wouldn't it be great if you could keep that same spot but have everything in it organized neatly? Well, maybe not everything, but pretty close. Of course it's recommended that you file away your papers and documents right away, but you can't always find time to do so. But when you do, you'll want a filing system that lets you file quickly and efficiently so that when you finally go searching for your stuff, you can actually find it.
There are several ways to create a good filing system. It all starts with file folders. File folders will hold all of your documents and you can organize them however you want. You can color-code them, alphabetize them, break them down by month, label them, whatever you choose. The key is to maintaining your filing system and correctly labeling and filing your documents so that you can always find what you need.
Why bother, you might ask? Well, think about what might happen if you misplace a couple of bills - like your mortgage or car payment. The longer a document sits around on a desk, a shelf or anywhere else but in the file, the more chances it has of being misplaced, covered up, hidden or otherwise lost.
Plus, some papers contain information that is not for everyone's consumption. The next time your best friend drops by, do you really want your paycheck hanging out for them to see? When papers are placed into the file immediately instead of allowed to sit out in the open, the chances of accidentally sharing personal documents are decreased substantially.
And lastly, rather than piling papers everywhere, leaving you with two square inches of workspace or counter space, put your papers into the filing system right away so you have more room to do what you need to do. You'd be surprised at how that simple task can change the lives of you and your family!
Both John Hilaire & Sharon Mann are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Sharon Mann has sinced written about articles on various topics from Family, Home and Home Management. Sharon Mann is President of the I Hate Filing Club, a group of nearly 100,000 office professionals who hate filing but love finding new ways to become more organized. Learn more about. Sharon Mann's top article generates over 12100 views. to your Favourites.
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