Organizing Your Financial Papers

Do you have a system for organizing your financial papers? I used to just let them all pile up on the kitchen counter, until I grew tired of paying late fees each month for the bills I kept losing. (Sound familiar?)

The system I use now is super-simple. I have three large envelopes, marked:

1. Bills
2. Items to Be Filed
3. Items to Be Shredded

As soon as a bill comes in, I put it in the "Bills" envelope. Then, I sit down with the envelope once a week to pay bills and, if it is the end of the month, balance the checkbook.

Now that tax season is upon us again, I need to add another folder to my system to keep my tax documents separate from all the other paperwork that comes in.

If you haven't developed a system yet for keeping track of your financial documents, I would encourage you to start with this simple example. Especially if dealing with your finances is something you're not 100% comfortable with, taking small baby steps in the direction of getting organized will build your confidence and empower you to be responsible for knowing what's in your accounts. That knowledge can then help you be accountable for paying your bills on time, which may save you up to $100 per month in late fees!

Related:
Tax Breaks for Single Parents | Balance Your Checkbook | Budget Calculator