A few weeks ago, at the beginning of the new year I sat down to go through our paperwork. It has become a habit of mine to be very diligent with our important documents.
Back story... when I was in college and living with friends I had my identity stolen. We believe they probably stole paperwork from a trash can. Needless to say this caused years and years of problems as I had to dispute bills that were not my own, but had my information tied to them. To do this, I had to prove to collection agencies that I didn't live at particular addresses etc. So luckily, my parents, saved everything and had all my leases from all the apartments I lived in. I could prove my residence and that was when I realized just how important paper work is.
So, here are my tips...
- get a filing cabinet
- get file folders
- figure out important documents (mortgage information, pay stubs, leases, any residence bills- water, electric, cable/internet), car purchase documents, any important banking account information) and create files for that
- Create a place for receipts (medical receipts are important)
Once you have a place for everything then you have to create your system. Here is mine...
- Important document comes in the mail
- If I plan to save it...open and put on my desk for filing
- If not, it goes in the shredder
- Once a week sit down and file documents, pay bills, check accounts, put receipts from the week in folder... etc
This system is what I do all year long. I save ALL my receipts. EVERY.SINGLE.ONE.
Here is why....First, I don't take tags off of clothing until I am ready to wash them because I KNOW that I will wear them. This way, if I decide to return it- I have the receipt! I save medical receipts to prove that I have paid them. On more then one occasion I have gotten bills from a doctor for a co-pay and I have looked back into my receipt folder and found that I already paid it! Saves money!
Finally, once a year...I go through all my folders. I shred any paper work that is not needed. I do save some residence bills from each year, proof of any work done to our home for future use or if there becomes a problem with the work done, & any important medical documents we may need. I move any file folders of companies we no longer use to our basement file storage or I trash what I don't need.
The other thing I do bi-monthly is sit down with my trusty pink book and change all my important passwords, write them down, makes sure all automatic withdraws are coming from where I want them to and just manage the finances. We do a budget yearly and then break it down monthly based on unexpected expenses that may arise.
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Your system my end up looking like mine or you may have your own process. I just think its important to be sure to know where things are (everything needs a home) so you have them when you need them and so you can use when needed. You just NEVER know!
One more story for how saving a receipt paid off! We once had a huge inground pool in our backyard, then one windy day in June 2016 a tree fell and destroyed the pool - 20K of damage. We had to prove to insurance the cost of the damaged stuff. Well I had the receipts for all the yard furniture and we got all the moneys reimbursed! I actually couldn't believe that I still had them but it again proved how being organized and thorough works to your own benefit! :)
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