Start the Year Off Right

Make Financial Records and Information Easily Accessible

The key to organizing financial records is finding a system that works for you. What works for one person may be too complicated for someone else. A common underlying thread, however, should be that records are easily accessible to those who may need them. Also, be sure important information is easy to find should something happen to you or your spouse.

A common mistake is holding onto records for too long. A yearly purge can help you from the barrage of paper piles. Knowing how long to keep certain things can help you eliminate the need to store unneeded documents. Get older kids into the act by having them shred them for you.

Keep for one year:

• Paycheck stubs
• Bills
• Bank statements

Keep for seven years:

• Yearly credit card summary statements
• IRA contribution records
• 1099s, W2s and other tax forms

Keep indefinitely:

• Yearly tax returns
• Warranty records as long as you own the item

For more information on financial records and how long to keep them, visit www.bankrate.com.

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Other articles from this issue:

• Create a Family Mission Statement
• Schedule Important Things First
• Organize
• Purge
• Maintain
• Determine Your Financial Goals
• Re-evaluate Expenses
• Revisit the Family Budget
• Simplify
• Make Financial Records and Information Easily Accessible
• Savings on the Road