Features - Spring clean your financial paperwork – part II
An important part of any spring clean is not only sorting through what you do and don't need to keep, but storing your financial paperwork in an easy-to-access and tidy manner.
Filing options
You don’t have to reinvent the wheel to come up with a filing system that works for you, and your filing system doesn't have to be expensive or expansive – just use a method that you understand and that you'll find easy to keep track of (and keep up to date).
Some common methods include:
Hanging files in a filing cabinet – use a different hanging file for each category of paperwork and label it accordingly.
A portable, expanding (or ‘concertina') file – file items alphabetically, or re-label each pocket according to what you want to keep in it.
Shoe boxes or large envelopes – clearly label each box (or envelope) with its contents for easy reference.
In-trays/desk trays – label each tray with its contents.
Ring binders – divide the binders using labelled dividers for each different category of paperwork.
Try to file paperwork in date order to help keep things organised and to make it easier to find things if you ever need to locate an old bill or receipt. And, start a new file (whether that's adding a new hanging file to the filing cabinet or starting up a new ring binder) for each year. You may find it useful to file your financial paperwork according to tax years (e.g. 1 July to 30 June), rather than calendar years (1 January to 31 December), as this will make it easier for you to pull out relevant documents when tax time comes along.
Some categories you may find useful
Many of us have similar needs when it comes to filing paperwork – for example we will generally all have a need to store important receipts, bank statements, and employment records. The following categories are suggestions only – pick and choose the ones that suit your requirements, and tailor them if different categories make more sense to your situation.
Category
What to include
Tips
Receipts and guarantees
Receipts for purchases and certificates of guarantee and warranty
If your purchase does have a guarantee or warranty certificate, keep the relevant receipt with the certificate
Employment records
Payslips, copies of employment contracts, payment summaries
Keep a separate folder/file for each employer
Bank accounts
Bank statements, records of any deposits you've made, old cheque stubs, correspondence you've had with your bank, and information about the accounts you have - such as product disclosure statements and booklets explaining the fees that apply
Keep separate folders/files for each different bank account so that each one is easier for you to reference
Credit cards
Statements and records of payments you've made, reward point summaries, correspondence you may have had with or received from your provider, information about the type of card you have, such as product disclosure statements and booklets explaining fees and charges etc
Loans
All documents you have relating to your loans, including loan contracts, statements, correspondence with the loan provider, product disclosure statements and fee schedules etc.
Keep a separate file for each different loan you have for easier reference.
Investment information
All documents you have relating to any investments you've made, such as share certificates, dividend statements, distribution statements, and product disclosure statements and prospectuses that provide details about the investment itself.
Keep a separate file for each different investment you have.
Household bills
Keep records of your household bills, such as your utility bills, and any maintenance and repairs you may have done (such as lawn mowing bills, window cleaning bills, plumbers bills etc).
Split the file into different sections for different types of bills.
Insurance records
Keep records of any types of insurance you may have, such as health insurance, renters insurance, home and contents insurance, or car insurance.
Keep a separate file for each different type of insurance you have.
Other important types of paperwork
Not all important paperwork is strictly related to finances. Some other types of important documentation that you may consider incorporating into your filing system are:
Identification documents, such as birth certificates, passports and documents of identity
Licences
Qualifications, such as certificates you received for completing any formal education or training
Legal documents such as wills, contracts, and court documents
Records of fines received and paid
Property-related documents, such as certificates of title etc
