Learn and Plan | Ways to organize your personal finances
hands shuffle file papers in cabinet

Ways to organize your personal finances

Mar 30, 2023, 5:07:36 PM | Reading Time: 5 minutes

Keeping your finances organized is essential to help you keep track of your money, spending habits, and bill payments. Here are some steps to ensuring your finances are well maintained.

List your accounts

Start by listing out your financial accounts. Note any accounts that have financial value, such as your:

  • Checking account
  • Savings account
  • Certificates of deposit
  • Credit cards
  • Debt
  • Auto loan
  • Mortgage
  • Personal loans
  • Student loans
  • Investments
  • Brokerage
  • Retirement account
  • 401k or 403b
  • IRAs

Once you have your accounts listed, get them organized by creating a spreadsheet. Certain software can help you see your financial life all in one place by keeping track of your accounts and automatically updating them. It also offers you the ability to generate reports that can help you monitor your money easier.

Reassess your budget once a month

It’s important to stay on top of your income and spending by looking over your budget monthly. You may need to make adjustments along the way as your financial situation changes. You can also work on reducing your fixed expenses, such as your mortgage, rent, and insurance rates, or try and cut down your variable expenses, such as your grocery bill, utilities, and transportation costs. 

Use budgeting apps

Budgeting apps make it easy to see how much you’re spending. If you need help getting your finances under control, there are a variety of personal finance tools to choose from. Many applications are designed for general personal budgeting, but each app may offer you something else, such as the ability to track your bills, a complete money management system, or even alerts when you are close to over-spending.

Store important documents in a secure place

Chances are you get most of your bills online these days, but even if most of them arrive electronically, you still need a place for those that come by mail. You’ll also need a place to keep investment papers, major purchases, bank documents, and tax files, as well as estate planning documents such as wills, trusts, living wills, medical directives, and powers of attorney. Storing and organizing important financial statements and documents can be a pain, but ordering your paperwork is worth the effort so you can access it easily and protect it.

Create a filing system

Organize regular bills and financial statements by the month or by the account (your preference). A file cabinet with hanging files is a good investment. Be sure to arrange documents by account in chronological order within each file, so they are easier to find at a later date. 

File receipts for important purchases

Receipts for major purchases should be saved and stapled to the warranty or instruction manual, then stored in a permanent file. A classification folder with pocket dividers for each type of purchase (electronics, furniture, appliances, etc.) is a good idea to organize them further.

Organize your investment papers

Keep any monthly financial statements until you get an annual summary. When you receive the annual summary statement, shred the monthlies and file the summary. If you have a bunch of accounts, make sure to set up one hanging folder per account. Keep any paperwork associated with the accounts as long as you have those investments.

Store estate planning documents

You want to store estate planning documents in a safe and accessible place. Most people think of safe deposit boxes first, but keep in mind that many states require a court order for your family members to open up the box and locate your documents if they are only under your name. It’s perfectly fine to keep your estate planning documents in your home or office, but make sure to store them in a fire and water-proof safe so they aren’t destroyed in a fire or flood. You can also store estate planning documents at your attorney’s office.

Safeguard electronic documents

With the rise of computer viruses and ransomware, you need to make sure your electronic financial documents are secure against the latest cybersecurity threats.

Back up your digital documents

Emailing copies of your documents can put you at risk, so instead back up digital docs on an external hard drive and password protect the files. Be sure to update that storage periodically. You may also want to make a copy to a second drive and store in a safe deposit box.

Secure data on your mobile devices

If you have sensitive data on your computer, tablet or smartphone you need to be careful when you’re in public. Public Wi-Fi usually doesn’t offer encryption for individuals using the same hotspot, so your signals can be broadcast across the immediate area. This makes it easy for someone to eavesdrop on your communication or for hackers to intercept your signal. The best way to secure sensitive data is to not keep it on your mobile device.

Save passwords securely

Storing passwords is a risk, but it’s something to consider to ensure you have access to your accounts, and your loved ones can access them when you pass away. You can use special password organizer books or a password manager program that generates and maintain strong passwords.

Communicate about accounts

If you share accounts with a significant other, be sure to keep each other in the loop about spending, investments, important paperwork and other important financial documents and events. Your finances can quickly become disorganized if you aren’t aware of everything that’s happening with them.  

REV 2/2020