By MP Dunleavey
Sent: Thursday September 02, 2010
This week, let's work together on 5 small steps that will enable you to worry less and feel more in control—so that it takes less effort to manage your finances this fall.
Most people don't know which financial documents to keep and which to toss—so they save it all, says professional organizer Lisa Zaslow, author of "Can I Just Shred It All?".
Solution: A fast, flexible filing system based on keeping ONLY the documents you need, in big folders (which you can subdivide on an as-needed basis). For now, focus on broad categories—"and set up your 2011 files, while you're at it," suggests Zaslow.
Supplies: Two flat-bottomed, expandable hanging folders; manila file folders; labels; about one hour—and a good friend. "People get more done with a buddy," she says. Put on a scary movie, pour some wine, then...
What to Keep
Stash the following papers in individual folders, labeled as follows:
 |
Personal tax items |
|
|
Business-related tax items |
|
|
Bank statements |
|
|
Credit card statements |
|
|
Retirement account statements |
|
|
Investment account records |
|
|
Insurance policies: life, health, home, car, etc. |
|
|
Home: mortgage and property tax docs; repair records |
|
|
Medical: bills, claims, FSA records, prescriptions |
|
|
Car: title, AAA membership, repair records |
|
|
Kid stuff: tuition receipts, permission slips, calendars |
What to Shred
It's OK to ditch the following, unless you need them for business tax purposes or to track your own expenses.
|
|
Paystubs (Unless you plan to reconcile them with your W-2, there's no need to keep them, Zaslow says.) |
|
|
Utility, heat, cable, phone bills |
|
|
Personal credit and charge card receipts |
|
|
Rent bills |
|
|
ATM, grocery, gas receipts |
 |
Set a date to declutter. What do you dread most? |
