Getting Your Financial House in Order

Is that huge pile of bills, receipts and bank statements on the desk too daunting to contemplate? The long days of summer are the perfect time to stop procrastinating and get your financial house in order. Financial organization builds money awareness—a key component to financial health and well-being.

Fortunately, there are plenty of user-friendly online tools and programs like Mint.com and online banking that now make managing and tracking personal finances much easier. For those drowning in financial paperwork, stressed about a financial “to-do” list, or dreading the overflowing file cabinet in the back of the office closet—these three simple steps can help make sense of cents.

1. Get Organized! Keeping documents organized will make it a lot easier to find them when needed and will help to avoid stress, frustration and lost time. All financial papers can essentially be broken down into the following categories: bills due, important documents to keep, and items to discard or shred.
2. Know Each Document’s Shelf Life Accidentally tossing important financial documents can be stressful, while storing every statement from the last 10 years can be overwhelming and unnecessary. Brian Alexander, tax lawyer and founder of Alexander and Associates, provides a brief breakdown of what to stash or shred:
   • Tax returns: It is recommended to keep these for seven years. If the IRS wants to audit returns, they generally have three to six years to go back from the date the taxes were filed.
   • Bank and investment account statements: Luckily with the internet, it’s simple to pull up electronic copies of bank and investment account statements at any time. This eliminates the need to keep every single paper statement, although it’s a good idea to review each paper statement received and if they are quarterly, keep them until the next statement arrives.
   • Bills and receipts:It’s recommended to keep utility and credit card bills for a year after checking to make sure the information is accurate. Mistakes can happen and if there’s a copy of the statement readily available, it can make it easy to dispute an error—the same goes for receipts.
3. Keep Information Under Lock and Key Identity or credit card theft can be a traumatic and disabling experience, and its negative repercussions can linger long after the crime has been committed. Shred old utility bills and even unused credit card offers, since they can be prime targets for thieves. It’s also recommended to keep all documents in a locked container or locked filing cabinet—but don’t lose the key!

If financial management is causing added stress and strain in life, contact ACI Specialty Benefits for financial consultation and other helpful resources. Call 800.932.0034 or email eapinfo@acispecialtybenefits.com.