Keeping Your Financial Records Well Organized

Whether you use a paper or digital system for your finances, keeping your records organized is essential to stay on top of your budget, savings, spending, and bottom line. Here are a few ways to help you handle your paperwork and electronic files so you can monitor your money, set goals, and set yourself up for financial success.

Bills that arrive in the mail should be filed in proper folders. Depending on the volume, a filing cabinet, accordion folder, or even a designated drawer could be suitable for holding them together. By keeping them organized and easily accessible, you can avoid missing payments and incurring late fees.

According to Reyna Gobel, writer for Investopedia.com, “Property tax and homeowners’ insurance bills are typically paid on an annual or quarterly basis, so they generally arrive by mail. An occasional expense like a medical test may be billed the old-fashioned way.”

Experts at AARP.org suggest creating a binder with separate folders or dividers for paperwork including: statements for your pension, credit cards, 401(k), IRA, checking account, savings account, and Social Security, as well as spots for your bills, warranties, loans, and mortgage information.

When tax time rolls around, you’ll have an easier time filing paperwork if you’ve been diligent about saving receipts throughout the year. Collect receipts for taxable deductions to help you complete your tax return accurately.

“Add new receipts as they come in. Record tax-deductible miles driven, tolls, and parking fees in a digital or paper notebook, calendar, or datebook,” advises AARP.org.

The digital age and available apps can streamline your finances, especially for bills and records you automate, such as direct deposit paychecks and monthly bills. Five Star Bank Digital Banking allows you to experience secure and convenient banking from your computer, tablet or cell phone. Connect all of your accounts – even from other financial institutions for your complete financial picture.

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If you use both paper and digital records, you may worry about missing something. To stay on top of your monthly bills, it’s helpful to have a complete record.
“Neither mail nor email is perfect. Create a checklist at the beginning of the month listing every bill you are expecting. You can keep it on your desk, bill-paying area, or a file on your computer,” suggests Gobel.

With these tips, you can organize your financial records to track where your money is going, see how much you’re saving, and never miss a payment. With a solid organizational system in place, your money goals and financial health will always be within reach.