Better Filing- A Great New Years Resolution

Don't you hate it when you are filing your tax returns and you can't find the paperwork you need?

Everyone should have a filing system for keeping their financial documents. Trying to keep track of it all in your head just won't work. If you don't have an organized filing system, you won't be able to find the information you want when you want it...and you will more often than not, end up shuffling through a huge stack of papers for hours to find a single piece of information that you could have found in several minutes if you had been organized.

1) It doesn't matter if it is a folder or filing cabinet...but it can't just be a huge stack of papers and unopened envelopes.







2) "Base filing on retrieval, not storage. Instead of asking yourself, "Where should I file this?" ask yourself, "Where would I look for this if I need it?" Then label the file accordingly"
http://www.powerhomebiz.com/vol46/filing.htm




3) Use different color files for each category:
This will help you file your papers even more easily every time you get a statement. Perhaps you would use green for asset accounts (checking/saving/investment), yellow for loans (personal/college loans/mortgage), red for bad debt (credit cards), blue for tax documents (prior year filings/tax deduction receipts/all tax documents), and purple for other important documents (passport/birth certificate/insurance papers)


In 2007, you are going to receive monthly statements for every account you hold. Whether it is paper or electronic (or both), you will receive checking, saving, retirement, investment, credit card, mortgage, student loan, and other documents that will track your financial progress and will help to gauge where you stand.

Also, during the month of January, you will recieve documents that will be essential for filing taxes. If you use Turbo Tax, and accountant, H&R Block, or just do it the old fashion way, you will need these documents to accurately report your taxes. Failure to do so could cause you to forgo a rather hefty tax refund and on the opposite side of the spectrum, a tax audit.

So the question is simple. Do you prefer chaos or an organized system?

Do you think you would like to have an organized system? If you would like an organized system...when do you plan on starting? Why not start today?

"Make room for the new you. You may not have totally determined who the new you is going to be, but you probably have decided that there are some things about the current you, that you want to change. Well while you are working on what the new you will be, start 'cleaning out a room' for the new you to live in. Get rid of the junk in your life both physical and mental that doesn't fit you anymore. Take things out of your schedule that are taking your time away from finding out what you want to do. By making room for the new you, you will create a vacuum that the new you will rush in to fill and you will be on your way to the top." Edward W. Smith




Until next time,
Thor

Helpful Links:
http://sbinfocanada.about.com/cs/management/qt/filingsystemjc.htm
http://self-help.vocaboly.com/archives/1086/financial-records-create-an-effective-filing-system/
http://www.bankrate.com/brm/news/bankruptcy/bankruptcy-update.asp

A whole blog on getting organized:
http://getorganizednow.typepad.com/get_organized_now_weblog/