Money Management: How to Organize Your Financial Documents

"Track your money."

You might have seen this advice multiple times. This is true, because you really need to monitor where your money goes. But how do you do that? By sorting and organizing financial documents, of course!

Financial documents usually tell how much money you have or how much you've spent. These are usually bank statements, tax forms, ownership titles, and paycheck stubs.

Benefits of Organizing Financial Documents

If you have a filing system in place, you will find things much quicker. It will save you time, and because time is money, it will save you money! Here are more reasons why:

• You can plan and measure your money progress

• You build routines for handling money matters, such as paying bills on time

• You determine how much money you have now

• You can make effective decisions about saving and investing money

• Your financial information is accessible to you

• Being transparent allows you to be more accountable and responsible

• You will not lose important files

• You can reflect on your financial activities

Where to Keep Financial Documents

• Home file (file drawer, several folders or even a cardboard box)

• Safe-deposit box (fire-safe, as much as possible)

• Personal Computer (for electronic files)

Types of Financial Documents

Don't know where to start? Here is the list of things you need to keep safely.

• Personal and Employment Records

  • current resume

  • employee benefit information

  • social security number

• Money Management Records (current budget, balance sheet, cash flow statement, list of financial goals, copies of documents in safe-deposit box)

• Financial Services Records (checkbook, cancelled checks, bank statement)

• Tax Records (copies of Income Tax Returns, paycheck stubs)

• Consumer Records ( receipts for major purchases, automobile service and repair records, owner’s manuals for cars and major appliances, warranties)

• Housing Records (lease, if renting; property tax records; home repair and improvement receipts)

• Insurance Records ( original insurance policies; list of insurance premium amounts and due dates; medical information, such as health history, prescription drug information)

• Investment Records ( records of stock, bond and mutual f und purchases and sales, list of investment certificate numbers, brokerage statements, dividend records)

• Estate Planning and Retirement Records ( will, pension plan information, social security information )

And if you find yourself as an expert in managing money, it's your turn to help others! Here are the careers to consider and earn money for yourself.

Professionals in charge of Cash

• Cashier

• Accountants

• Bank Teller

• Payroll Staff

• Fundraiser

• Cash manager

• Financial advisor