Organizing Your Financial Life
Most people keep their personal financial records in less than good conditions. Many files consist of bundles of old ATM statements, receipts showing groceries boughttwo years ago, and credit card statements that were already paid. However, if a situation were to arise where you needed an important document that you slid in with all the other junk, not only would it be stressful digging through the paper, it may not even be found until it’s too late.
There are a few simple steps to take when it comes to organizing financial records and important documents. The most important step, however, is to set aside time to accomplish this task. Make sure the time is when nothing big is happening before or after, and everyone who needs to be present can participate.
Give Yourself Some Space
You should allow yourself ample space, such as a dining room table or the living room floor with the furniture pushed against the wall. Make sure you have enough organizing supplies like sticky notes, file folders, bins, hanging folders, large envelopes, three-hole punch, etc. Trash cans and shredders are useful to have in order to dispose of unwanted paper and papers that may have private information on them. Also, be sure to have a place to put the organized papers, like a filing cabinet or storage bin.
Gather and Organize Papers
The next step is collecting all the papers that deal with your finances. Start sorting the papers into piles like “bank statements” and “utility bills”. If you have items from two different companies within the same industry, like statements from Wells Fargo and Bank of America, these can both be put under bank statements or under the company name, whichever you prefer.
Continue this until everything is divided into neatly organized piles. Use labels or notes to mark the name of the category to avoid confusion.When you begin organizing the papers, be sure to put all the “paid” items away first. Only keep what happened within the last year and that you may need to provide for record, such as a rent receipt or a big ticket item warranty. Do not keep receipts for items that you paid for, the bank cleared, and the item itself is gone, like groceries. Organize the rest of the “unpaid” items in the envelopes or file folders.
Mark Your Calendar
Now you need to sort the piles into when you will pay what because some bills may have due dates at the beginning of the month while others have due dates during the middle of the month. Many open stacking files have four compartments, one compartment for each week of the month, or one with twelve spaces for each month of the year. Also write down when everything is due in a planner or on a calendar so you don’t forget to make a payment.
During the Month
Within your organized files, you should have a category for each life area you spend money. Once a week take your receipts, records, and scribbled notes and write down where you spent ALL your money. By the end of the month, you will have a tracking sheet that lets you know exactly how you are spending. Once you know this, you will be able to modify it if it isn’t allowing you to live within your
means.
Useful Tools to Organize Your Financial Life
Shredders
Store / Name of Product / PriceTarget / Aurora 6-Sheet Strip-Cut Paper Shredder / $16.99
Walmart / Royal Consumer PX70MX Shredder / $39.97
Office Depot / Office Depot Value™ 505SB Strip-Cut Shredder / $29.99
Office Max / Office Max 8-Sheet Diamond-Cut Shredder / $25.00
Staples / Staples 6-Sheet (SPL-638X) Cross Cut Shredder / $39.99
File Cabinets
Store / Name of Product / PriceTarget / Studio RTA 2-Drawer Vertical File Cabinet / $89.99
Walmart / Rolling Two-Drawer Filing Cabinet,Wood / $69.87
Office Depot / Office Depot® Brand 2-Drawer File Cabinet / $34.99
Office Depot / Office Editions 2-Drawer Vertical File Cabinet / $39.99
Staples / Office Designs Vertical File Cabinet 2-Drawer / $49.99
File Folders
Store / Name of Product / PriceTarget / Hanging File Folders 6 pk. - White / $10.99
Office Depot / Office Depot® Hanging Folders Box of 25 / $10.99
Office Max / OfficeMax Hanging Folders 25/Box / $6.99
Staples / Staples® Poly Hanging File Folders 20/Box / $11.98
Trashcans
Store / Name of Product / PriceTarget / InterDesign Swing-Top Wastebasket- White / $19.89
Walmart / Steel Rectangular 38-Liter Step Trash Bin / $74.83
Office Depot / Durable Polyethylene Wastebasket, 7 Gallons / $6.79
Office Max / Rubbermaid 13 Quart Wastebasket, Black / $4.99
Staples / Rubbermaid® Plastic Wastebaskets, 7 Gallons / $6.79
Label Maker
Store / Name of Product / PriceTarget / Casio Adhesive Label Printer - KL-60-SR / $19.99
Office Depot / Perfect Label Maker / $19.99
Office Max / Brother P-Touch PT-1280 Personal Label Maker / $24.99
Staples / Brother PT-80 Label Maker / $29.99
Student Money Management Center | 237 Nebraska Union | Lincoln, NE | 68588-0461
| | 402-472-9093
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