Even the most organized people can find managing finances and documents a difficult task. You can save time and money by getting your finances in order. It can also make tax filing less stressful.

You must set up a system for the storage of your files, regardless of whether they are digital or physical. Start by gathering all of the papers you have in one location. Look over your kitchen counters or entryway table, your home office desk, car trunk, garage and any other place where papers collect. Throw away junk mail, catalogs, expired coupons and bill inserts. Keep receipts and product guides for major purchases.

Sort your paper documents according to category. For example, bank statements can be sorted based on date and then into folders for every type of account, for example, investments or credit cards. The organization by category helps to locate what you’re searching for when you require it. Consider using subfolders when you have multiple accounts, such as “auto” and “home.” You can also arrange your files by year, which is particularly helpful in tax time or audits.

After you’ve categorize your paperwork and divided it into years, be sure to go through and dispose of old files, based on the guidelines of the law regarding retention. Backup your files regularly to reduce the risk of losing important data. If you’re sharing files with colleagues think about using the use of a document management program to manage the entire process.

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