Tag: records

There are many things to do, but you feel lost on where to start. Understanding how to organize your financial record keeping can help you prepare for a more successful year than last.  

In addition to the several apps and software that can help you with this task, there is much to say about good old-fashioned pencil and paper. But it would be best if you did what works best for you. The important thing is learning how to organize your financial records.

Keeping your financial records organized can be a significant factor in managing your household finances. Not having these things in order can cost you time and money due to lost documents, records that need to be replaced, deductions lost at tax time due to poor record keeping, and unpaid bills.

Don’t be ashamed.

You don’t have to feel ashamed if your financial records are in shambles.  You are, very likely, not alone in this challenge. Adding one more can feel too much with all you must do daily.

One of the hardest things to do to make our financial lives make sense is to organize the little parts of the puzzle into a whole picture. Where do we put it all? Using a

The bills come through the mail, and what do we do? We throw them on the kitchen counter…

Next week, we will get more bills and add them to the other bills on the kitchen counter.

We freak out! Why? Because we do not know how or where to start. First, we need a place to keep it all. A document box could help corral the clutter. Or, if you need a more substantial or secure option, you could try an old-school file cabinet or locking storage option to file and secure your documents and financial records.

Get Started Sooner Than Later

Failure to get started is only one of the challenges we must overcome to manage better and organize our records, but it’s a great place to start.

This is the year we will get in order and take our counters back from the overflow of paper bills and invoices.

Let’s get it started today!

It’s time to decide to organize your finances better when you find yourself scrambling for receipts for purchases you know you made earlier in the year—purchases that could help defray some of what you may owe the tax man. Or when you need important documents to get approved for a loan or produce copies of important business documentation for any reason.

Often, we feel out of control with our finances because we lack control over our financial record keeping, organization, and station.

Choose Your Method

This doesn’t have to be hard if we decide to keep everything simple.  I’m talking about pencils, paper, simple folders, and a file box. Yes, I know this may seem antiquated to some, but some of us like the tactile paper and pencil or pen approach.

If this is not your preferred method of record keeping, then there are options for you as well!

When I used to write everything down, I used a larger version of my checkbook ledger as a template for keeping up with how money was flowing in and out of our accounts.  I had to be very disciplined and record receipts weekly.  This also meant that my husband and I had to keep up with those receipts in an accessible area of our home to work on our books.

We did this for years, and I must say that although it was time-consuming, it helped us to have a very clear picture of what was happening with our finances.

We kept file folders for medical bills, large purchases, workplace benefits, and insurance, among other things.

This worked until we had children and more career aspirations, which meant more time constraints. At that point, we began using spreadsheets and other software to manage, record, store, and organize our finances.

Time For Change

Technology was changing as well. Gone were the days when we had to keep up with every transaction tediously while waiting for it to hit the bank. Now, debit and bank cards were outpacing the use of checks, and as a result, many transactions were instantaneous. Gone were the days of the nasty trait of “beating the bank” when writing checks before your deposits would clear.

Today, debit transactions are posted within 24 hours of the transaction. This means there is no time to try to cover a purchase, and you should have waited until the money was available. Becoming more organized, while a time commitment initially, will make your financial life more manageable and attainable.

With pencil and paper or by recording things on your computer, start here: 

Steps To Better Record-Keeping

1. Write down the kinds of transaction categories you need to keep up with. Some examples may be your deed, your will, tax returns, stock market investments, bank or financial institution statements, and receipts that you need to hold on to for an extended time to confirm particular payments or ownership. These are just a few things you may decide to keep up with.

2. Compile the documents for the categories you listed in Step 1. This is the time to go through your piles of paper, whether in junk drawers, closets, or wherever it has found itself in your space. You can also go through your email if things are sent there, especially if you have decided to go paperless.

3. Where will you keep these items?  Where in your space will they live?  This should be in an area that is easy to remember. Also, one that will not add to or clutter your space. If you choose a paper filing system, make sure to keep a shredder available so that you can fight clutter.

4. Decide on your filing system. Remember, we said that our financial records could be organized or managed by pencil and paper, or we could organize them digitally.  While I started using the pencil and paper route, I eventually moved to the digital mode of record keeping. I started going paperless with my financial institutions and creditors. I still use files and folders. I use them on the computer instead of in a binder or box.  If you choose the first route, you must supply yourself with some things. File folders, labels, and a file cabinet or box.  Using a small banker’s box is an easy and cheap way.

Or some other sizeable decorative box you don’t mind having in your space.  

Suppose you prefer to use your laptop, tablet, or other devices. That’s fine. You can make a file on your desktop or drive with folders for the categories needed. You may find having a scanner at your disposal handy, too.  I usually start with a folder for the financial year in question. Then, in that folder, I make other sub-folders by category, such as “confirmations,” in which I send confirmations for payments that I make online.  We also have a folder for taxes. One for bank/financial statements. And one for ‘tuition payments” for our college students, to name a few. 

I share access to these files with my husband so that either of us can refer to them at a glance.

I also share the family budget with my husband for added continuity in financial organization. I do this through the Google Docs app and invite him to edit that document. This way, we know which accounts are available for different spending categories. And since I manage this app, any changes are readily visible to him.

Everything doesn’t work for everyone. However, some of these ideas will help you cultivate your financial record-keeping organization method. Find what works for your and your family’s needs.