Get it Together: Get it Together: Organize your Financial Records

Objective Learn: • Benefits of getting organized B fi f i i d • Why some record‐keeping systems fail • How to develop efficient bill‐pay system • What records to keep, where, and how long • How to take a home inventory • What to have handy in case of natural disaster y • Where to go for help

Benefits of Getting Organized Benefits of Getting Organized • • • • • •

Have more time, energy, space Find papers/receipts quickly Reduce/eliminate late fees / Become clutter‐free Find key documents in case of disaster Find key documents in case of disaster Gain peace of mind

Cost of Not Getting Organized Cost of Not Getting Organized • • • • •

Zaps energy Wastes time Wastes moneyy Increases stress Creates tax time stress Creates tax‐time stress

Why Some Record Keeping Systems Fail Why Some Record Keeping Systems Fail • Not comprehensive • Too complicated • User isn’t consistent

Preparation Materials you may need – Envelopes, budget or bill organizers,  shredder, file folders, hanging files,  fl file cabinet, fireproof safe b f f f – Spreadsheet or budget pages – Computer software, if desired – Storage containers or boxes

File Guide File Guide Examples of major categories: • Auto • Financial Aid • Correspondence p • Housingg • Credit Cards • Insurance • Bank Accounts Bank Accounts • Investments • Employment • Taxes • Health • Warranties

Develop Efficient Bill Pay System Develop Efficient Bill Pay System • Decide when, where • Gather and keep all bill‐payer materials in one  Gather and keep all bill payer materials in one location Organize, record expenses regularly • Organize, record expenses regularly – – – –

Envelopes/boxes for receipts Spreadsheet Account book Quicken, Microsoft Money, or other software

• Balance checkbook monthly, or Balance checkbook monthly or • Check accounts regularly online

Organizational Tips Organizational Tips • • • •

Touch it once! Deal with it, file it, or shred it C l Color‐code your files d fil File regularly  R d Reduce unwanted credit card solicitations t d dit d li it ti – Optoutprescreen.com or call 888‐5opt‐out (888‐567‐8688)

• Put bills to be paid first at top of stack • Mail bills 7‐9 days before due date, or pay  electronically 2‐3 days before due date

More Organizational Tips More Organizational Tips • • • •

Use direct deposit and payroll deduction Keep all tax records in one place Read disclosures, then toss , Review all bills for accuracy – Discrepancy? Call immediately. Discrepancy? Call immediately

• Use online banking/bill‐pay/ACH

Benefits of Online Banking Benefits of Online Banking • • • •

Reduce paperwork Check balances, view statements—24/7 Move money between accounts—24/7 y / Download account information—24/7

Benefits of Automatic Bill Payer Benefits of Automatic Bill Payer • Set up regular payments • Make payments to creditors on time every  month • Make payments on the date you select • Avoid late or missed payments Avoid late or missed payments • Save time, postage costs, and check writing

Financial Documents Financial Documents • • • • •

Birth Certificate Social Security Card Bank Statements Financial Aid Paperwork Financial Notebook Financial Notebook

Disaster Proof Important Papers Disaster Proof Important Papers Plan ahead … in case you have only a few minutes  to clear out of your home to clear out of your home • Identify single location for crucial papers and  backup disks (fireproof box or safe deposit box) backup disks (fireproof box, or safe deposit box) • Make certified copies of birth certificates to  provide to government agencies provide to government agencies • Put papers in plastic covers  • Tell others where papers are located

Financial Notebook Financial Notebook • Blueprint of your finances • Road map for loved ones • Faced with leaving your home quickly? Grab  y your financial notebook!

Where to Keep Documents Where to Keep Documents • • • • •

Home active file Carry with you Home permanent records p Home inactive file—long‐term storage  Safe deposit box or fireproof safe Safe deposit box or fireproof safe

What to Shred What to Shred • Statements (credit, retail, gas cards)—after  payment is credited Keep only for warranty or payment is credited. Keep only for warranty or  insurance purposes. • Cancelled checks—after balancing statement.  Keep checks that document tax deduction. • Monthly money market statements—after  getting annual summary or 1099. getting annual summary or 1099. • Credit card offers

Get Started! Get Started! • Set goals • Develop action plan • Communicate plan to family p y

Checklist: Are you ready? Checklist:  Are you ready? • • • • • • • • •

I know why my current system has failed  I know how to reduce junk mail I know how to reduce junk mail I know how to set up and simplify my files I know what records to keep or shred I know what records to keep or shred I know where—and how long—to keep records I plan to create a financial notebook p I plan to take a personal property inventory I plan to communicate my system to family I know where to go for help

Thank You! Thank You!