";
Financial Records the Importance of Creating An Effective Filing System

 by: Michael Saunders

In order to effectively reduce your debts and fix your credit history, you are going to have understand 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  (continued...)
Financial Records the Importance of Creating An Effective Filing System
  Page 2

About The Author

Michael Saunders has an MBA from the Stanford Graduate School of Business. He edits a site on Credit Repair and Debt Consolidation and is president of Information Organizers, LLC.




Social Entrepreneurship
Spotlight



This Social Innovation Helps Prevent Bed Sores in Wheelchair Users


This Social Innovation Helps Prevent Bed Sores in Wheelchair Users

Co-founders William Mann and David Mravyan devised the Sensimat during a mandatory project for their MBA at the Richard Ivey School of Business in Canada. Sensimat is a device that helps manage and assess pressure among wheelchair users.




Not for Profit Jobs in Florida

  Executive Director Jobs
  Education Jobs
  Social Work Jobs
  Education Jobs
  Social Services Employment



Federal Government Grant and Assistance Programs



Edited by: Michael Saunders

© 2008-2019 Copyright Michael Saunders
Click here to open the popup

Never miss an update from Papermashup

Get notified about the latest tutorials and downloads.

Subscribe by Email

Get alerts directly into your inbox after each post and stay updated.
Subscribe
OR

Subscribe by RSS

Add our RSS to your feedreader to get regular updates from us.
Subscribe