Household documents are filed permanently action files are used once and then discarded. Examples include invitations, parking tickets, appointment reminders, homework, and bills. Don’t confuse these with documents that go in the household category. Action: These are the papers you need to take action on and then discard.Organize years of paperwork by placing each document into one of these five paper categories: action, archive, household, recycle, and shred. Now it's time to sort all of your paperwork. The Spruce Home Improvement Review Board.It may take a while to get things in order but you’ll be very glad that you did. Take the time to organize your financial records. A form for recording all of your digital assets is available at. A form for recording important financial information can be found at. Then share a copy of this document with your loved ones and the executor of your will. Consolidate Your Financial Information - Prepare a consolidated list of financial assets, debts, insurance policies, contact information for financial advisors, and other important information.By having all your investment purchase information in one place, the cost basis of shares can be easily determined for future capital gains tax calculations. Save year-end account statements that list periodic deposits and investment earnings as well as the most recent prospectus or annual report.

Create Investment Files - Start a file folder for each stock, bond, or mutual fund that you own.Know What Goes - Shred reconciled bank deposit and withdrawal slips, paid utility bills, expired warranties and service contracts, credit card slips after reviewing your billing statement, and ATM receipts and deposit slips after transactions have been shown correctly on a bank statement.Save records related to capital assets, such as a house or investments such as stock or mutual funds, for as long as you own them plus at least six more years. After taxes are filed, place all supporting documents for each tax year into a single large envelope or accordion file folder. Back up Your Taxes - Keep receipts and records relating to entries on a tax return for at least 3 years after filing (6 years is better).Another option is to buy a fireproof home safe to store valuable papers. Rent a Safe Deposit Box - Store securities and documents that would be difficult to replace (e.g., birth and marriage certificates, car titles, stock and bond certificates, adoption papers, burial plot papers, and auto titles).Inactive Records include real estate documents, Social Security information, retirement savings statements, and copies of wills. Active Records include bank and investment account statements, insurance policies, medical records, and warranties. Categorize Your Records - Separate active records from inactive (archived) documents you will keep a long time.Many office supply stores also sell financial record-keeping system products with customized file folders for household expense categories and types of filed documents (e.g., insurance policies). Purchase Filing Materials - Use plain manila folders, hanging file folders, and/or accordion files.Handle your mail once and file, shred, or act on financial documents as they arrive instead of laying them aside in piles. Invest a few hours to set up an organized filing system so you can find things when you need them and have a place to put tax receipts and important family records. Designate a Record-Keeping Location - Use a two-drawer filing cabinet or deep desk drawers.With organized records, you can find documents easily, handle tax disputes with confidence, document ownership of specific assets, potentially save money on taxes (e.g., capital gains tax calculations), and help others handle your financial affairs, if necessary.Ĭonsider the following eight small steps to get your financial house in order: Organizing financial records may not be the most exciting way to spend a day, but the rewards are worth it. What to do? Make the time to clear the clutter and develop an efficient financial record-keeping system that works. Many people report having difficulty managing their financial records and physical symptoms of stress because they feel disorganized. Extension Specialist in Financial Resource Managementĭeluged with financial “paperwork” (investment account statements, tax records, and important correspondence such as a certificate of deposit (CD) rollover notice)? You are not alone.

Organized and filed documents