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Organizing your finances and the associated paperwork can be confusing. Part of my job as a daily money manager is to help my clients organize all of it. In this post, I’m sharing some of my best tips.

Money in Your Pocket

Not everyone carries cash today, but if you do, you want to be sure you know how much you have. You also want to be sure you hand over the correct value of bills. This great Cash Envelope System, which you can use as a wallet from Etsy, will help you do just that.

Financial Plan

Having a financial plan is the key to financial freedom and success. Check out this great budget spreadsheet and our monthly to-do list for help!

Organizing Your Finances and Financial Paperwork

Bank and credit card statements, tax info, insurance info, etc. There’s a lot of paperwork involved in financial management. Having a solid organization system in place makes a big difference! First, check out our post to know how long you have to save things. Then, set up a system. 

Create Categories

The big one we’re focusing on here is finances, but you could also have categories for household expenses, vehicle expenses, etc.

Create Sub-Categories

For finances, sub-categories might include savings account, checking account(s), student loans, mortgage, credit cards, etc. Be as specific and narrow as possible. It will help you find things later on.

Use Color Codes

Each of the larger categories should have its own color. This makes it easier to see at a glance. For finances, we like to use green. Use erasable file folders of the chosen color to create sub-category sections within the larger category.

Make Labels

Using a label maker may seem silly at first. But if your handwriting isn’t precise or if you have dexterity issues, it can mean the difference between finding your savings account statements in 30 seconds or searching through folders because you can’t read the labels.

Set up your filing drawer, cabinet, or box

Whether you need a whole cabinet, a drawer, or you’re using a file box, the process for setting up your organization system is the same. 

  1. Use a separate hanging folder for each category. You may need to use more than one, depending on how much paperwork each category has. Put them in the drawer in alphabetical order.
  2. Place documents in the appropriate sub-category folder and label it.
  3. Place each sub-category folder in the appropriate hanging folder, also in alphabetical order.

That’s it! Now, all you need to do is maintain it by correctly filing paperwork as it comes in and purging as appropriate. 

Questions? Let us know in the comments, or contact us for further assistance.