It can be intimidating – all those financial files and papers pleading for organization. If that corner of your kitchen counter is getting piled high with everything from banking account statements to your 401(k) ^[2] documentation, you’re probably ready. But first check out which financial files and paperwork you should save and for how long ^[3].

^[4] First, don’t run out and buy some huge 4-drawer filing cabinet for your financial files and paperwork. For now, a plastic “see-through” filing box with a handle that accommodates hanging file folders will do. Once you need more room for your financial files, look to buy a second-hand file cabinet at a garage sale, used office furniture store, or from your own company (sometimes they have old extras hanging around).

The advantage of the file cabinet with a handle is you can take your financial files with you – to your accountant during tax season ^[5], to your mortgage ^[6] broker when you refinance your mortgage ^[6], to your kitchen table when you’re ready to pay the bills. It really has a lot of advantages.

Which financial files to set up:

• Taxes
  1. Income
  2. Deductions
  3. Property
• Insurance
  1. Life
  2. Car
  3. Homeowners
  4. Health
• Banking
  1. Checking
  2. Savings
  3. Money Market
  4. Certificates of Deposit
  5. Other
• Real Estate
  1. Mortgage ^[6]/Lease
  2. Rental Properties
  3. Vacation Home
• Credit Cards ^[7]
  1. Visa
  2. MasterCard
  3. Discover
  4. American Express ^[8]
• Home
  1. Repairs/Upgrades/Improvements
  2. Appraisal
• Automobiles
  1. Car #1
  2. Car #2
• Retirement
  1. 401(k) ^[2]
  2. ESOP
• Brokerage account ^[9]
• Estate Planning
  1. Will
  2. Trust
  3. Directives
• Legal
• To Do
• To Be Paid

Within each hanging folder, I place manila folders to better organize what is going on within that category of my personal finances. For example, with INSURANCE labeled as the hanging folder, I put in manila folders with labels corresponding to each sub-category (life, health, auto, homeowners, etc).



By using this system, I’m better able to find what I need when I need it. Once your small carrying-around file box is full, move older items to a larger file cabinet.

What tips do you have for organizing your personal financial files?

Technorati Tags: personal finance. money ^[10],tips ^[11],financial files ^[12]

Photo by jessica mullen ^[13]

About the author

Ron has written 1082 articles on The Wisdom Journal.

The founder and editor of The Wisdom Journal ^[14] in 2007, Ron has worked in banking, distribution, retail, and upper management for companies ranging in size from small startups to multi-billion dollar corporations. He graduated Suma Cum Laude from a top MBA program and currently is a partner in a national building materials company.

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