Financial management for a family is a daunting task, especially when you think about the volume of bills and accounts, paytubs and receipts statements, and the other important paperwork that is delivered to your home on a regular basis. It’s easy to get lost in everything you need, however an organized system can keep all the information in your reach.
Create your own filing system
Start with your home’s filing system. You could end up having two filing systems, one for physical documents and another that is designed for digital documents. Of course, you could connect everything by printing or scanning documents when necessary, but it’s the decision of you. The most important thing is to design an organized system that can hold and organize your most important documents.
It is helpful to organize folders to organize your major categories. Examples are: health, job and banking, credit cards, bank tax, investments and home, cars and major purchases, insurance and loans of other kinds. Each week check all the documents you received in the mail or ended up in your inbox. Sort everything into the folders. While some things are able to be tossed out (after shredding) You should keep receipts, insurance documents, insurance forms for large purchases, account statements and pay bills, health forms, and everything related to your tax returns.
Create an archive for the tax year in which you are currently paying. A central location can make things simpler come tax time.
Separate your bills
The household bills–anything that is waiting to be paid should be filed in an additional system. Sort your bills according to due date, and add them to the file of the month in which they’re due. It is also possible to track your expenses in a personal financial spreadsheet or program or using an application for managing money.
It is best to pay your household bills on a weekly basis but if you only have just a couple of bills, it’s possible to pay them biweekly or on a monthly basis. Bill pay online systems are great for staying organized, cut costs on stamps, and have your bills paid quickly. If you don’t, make sure you mail and write your checks prior to the date by the deadline, so you don’t get charged with a late fee.
Make sure your folders are clean regularly
At a regular interval at least once a year or semi-annually you should go through all of your folders and take out any items that are no longer required. If your folders is getting overloaded then separate them by yearand keep any new information in the front of your drawer for files, so that it’s easier to access.
How long do you need to keep your documents? The answer depends on the particular document. The majority of tax documents should be kept for a minimum of seven years. Receipts from major purchases as well as the title information should be saved for as long as you own the appropriate item. Statements and other papers that are issued on a monthly basis should be thrown away after one period of one year (or lesser).
Although it can take some time at the beginning but having all your financial details organized can make day-to-day payment of bills and financial management a lot easier.
