Organizing Your Financial Life
Prepare now to make life easier down the road.
Our two cents
Our two cents
Just as items get lost in a messy room, a disorganized financial life makes it easy to lose track of where your money goes. Creating a system that makes sense can help ensure your money is doing what it should.
Managing your finances can feel like putting together a complicated puzzle, but it's easier than you think. Just take the time to set up the right tools and get organized, and the pieces will start falling into place.
Open the right accounts
Banks and credit unions are where you can open up basic checking and savings accounts to manage day to day expenses and short term savings.
Checking accounts are used to store money in the short term until it is needed—like for gas or groceries—or to pay bills. You can easily deposit or withdraw money through checks, debit cards, or online payments.
Savings accounts are used to set money aside for use in the future—like for an emergency or a vacation—and can allow the money to collect interest. While you can withdraw money at any time from a savings account, unlike checking accounts, there may be limits on how often you can withdraw money.
Take the time to comparison shop different financial institutions and find services and features that are right for you.
Electronic transfers like directly depositing your paycheck and linking your savings and checking accounts can help you better manage your finances and may make it easier for you to save.
what to look for
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What to look for:
- A checking account that pays interest
- No or low minimum balance requirements
- Unlimited free checking
- Free ATM withdrawals
- Good customer service
- A checking account that pays interest
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What to avoid:
- Monthly account servicing fees
- High fees for insufficient funds
- High account minimums
- Monthly account servicing fees
Set up a secure system
Keeping all financial details in one centralized place and organized will help them make more sense. By creating a system now, you won't have to think about it later. Be sure to secure and copy your important papers. Keep the originals in a water-tight container, fire safe, or a bank safe deposit box. If you keep your documents at home, be sure they are safe, but that you can grab them in a hurry in case of an emergency. You can also scan and store important documents and statements electronically, then put them on a flash drive or store the information at a secure online storage website.
Here is an example of what to group together:
system
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Bank accounts
- Checking account statements
- Savings account statements
- Checking account statements
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Insurance policies
- Car
- Disability
- Health
- Homeowner's/renter's
- Life
- Car
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Debt
- Car loan statements and paperwork
- College loan statements and communications
- Credit card statements
- Personal loan statements
- Car loan statements and paperwork
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Personal
- Birth certificate
- Divorce decree
- Marriage certificate
- Passport
- Prenuptial agreement
- Birth certificate
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Household
- Final settlement statement (needed when you sell)
- Home improvement receipts
- Lease (if you rent)
- Mortgage payment receipts
- Rent payment receipts or canceled checks
- Security deposit receipt
- Title or deed to your home (if you own)
- Final settlement statement (needed when you sell)
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Retirement
- Social Security statements/cards
- Retirement account statements (e.g., 401(k), IRA)
- Social Security statements/cards
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Taxes
- Current year's tax return
- Tax returns from the past seven years, along with backup receipts for at least the last three years (longer if there are any unusual circumstances)
- Current year's tax return
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Investments
- Statements for your children's accounts
- Taxable brokerage accounts (keep annual statements and trade confirmations)
- Statements for your children's accounts
This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The securities, investment products and investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.
All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.
For illustrative purposes only. Individual situations will vary and are not the experience of any specific clients and are no guarantee of future performance or success. Not intended to be reflective of results you can expect to achieve.