How’d you like to learn how to organize all of your financial documents and live rich? Better yet, what if I showed you how to efficiently sort all of your documents in different categories, which will in turn alleviate all of your money problems? If either of these questions interests you and you’re ready to change your life then you may want to continue reading.
I know! Just the thought of coming up with a system for organizing all of your financial papers is a task we usually put on the back burner. Who wants to spend their weekend rumbling through documents that involve money and lack there of. Though this process is daunting, it’s probably the most important thing you could ever do in your life. Not only that, it can take you from being average to being rich (or your definition of rich). If you are always in a blur about where your money goes and need to finally stop it from running your life, then this is for you. If you are living paycheck to paycheck and is constantly afraid of getting fired, then this is for you? If you are unsure of what will happen to your family after you die, then this is for you. And finally, if you are tired of searching for a “Get Rich” system and are ready to discover a system (created by you) that actually works, then this really is for you. Just remember, this is a process and will take some time but at the end it will all be worth it.
Items you’ll need:
- 11 Hanging folders
- 40-50 File folders
- A glass of wine (optional)
Ok so lets get started!
Hanging Folder #1 Tax Returns
This folder will have eight file folders where each folder will house all tax returns documents dating back seven years including this year (2009-2016). Documents include W-2 forms, 1099, 1040EZ and etc. — you get the idea! For example, folder one will be labeled 2009 and folder eight will be labeled 2016. It is important that you find all of your tax returns and put them in this folder because this is usually how far the IRS can go when they decide to audit you.
Hanging Folder #2 Retirement Accounts
This folder will have all of your retirement statements from your IRAs to your 401K. Depending on the number of accounts you have will determine the amount of file folders to add. For every account you have, make sure you keep every quarterly statement you receive. This helps you keep track of what’s going on with your accounts and how your money is growing.
Hanging Folder #3 Social Security
This folder will only maintain your most recent social security statement. If you are not receiving social security as of 2014 you should be receiving statements three months before your birthday. For more information visit https://www.ssa.gov or contact them at 1-800-772-1213.
Hanging Folder #4 Investment Accounts
This folder will hold all of your investment account documents. For every account you have, create a file folder.
Hanging Folder #5 Savings and Checking Accounts
Create separate file folders for both accounts if applicable. Because it’s best to update your statements monthly, at the end of the year you should have 12 statements for each account you possess. If you online bank and prefer the paperless process, I’d recommend you put a note in this assigned account folder stating you’ve saved that month’s statement via online.
Hanging Folder #6 Household Accounts
This folder will contain file folders for your House title, Home Improvements (all the receipts for all home improvement work) and Mortgage (monthly statements). Be sure you constantly check your mortgage statements so that you are not surprised by charges you are unaware of. If you are renting, this folder will contain your lease, your deposit receipt and your rental payment invoices.
Hanging Folder #7 Credit Card Debt
The scary “D” word. In this folder you will create file folders for every credit card you have and house all of your monthly statements. As mentioned before, if you online bank, make sure you record your monthly statement and keep a note in its folder. This allows you to see all of the charges on your accounts and shows you your progress or your regression.
Hanging Folder #8 Other Liabilities or Loans
In this folder you will include all of your loans with the exception of your mortgage or credit card debt and put each loan in their own individual file folder. These loans include: personal loans, car loans, school loans, you get the gist!
Hanging Folder #9 Insurance
This folder will include all of the statements of your insurance policies including car, life, health, homeowners, etc.
Hanging Folder #10 Family Will or Trust
This folder will hold a copy of your will or trust. If you haven’t created a will, go do it now. You will thank me later.
Hanging Folder #11 Children’s Accounts
If you don’t have children yet then you don’t have to worry about this folder. If you do, this folder will house college savings account records and investments for your children.
Yay! We are finally at the end. How does it feel? It may feel a bit overwhelming but I promise you it is all worth it. As long as you begin this system, you have already made a difference in your life. Remember you don’t have to do it all in one day and it will take some time to master it. If you have any questions about any step or just need help creating one, please feel free to contact me.
Also, be sure to read Smart Couples Finish Rich: 9 Steps to Creating a Rich Future for You and Your Partner by David Bach. I’ve utilized his system (mentioned above) for one year now and it has transformed the way I view money and has allowed me to know how my money is working for me. I am on my way to becoming rich $$$.
“You don’t have to be rich to live rich”