Paperwork is critical. It is an ideal way to keep track and also hold record of all your transactions. When money is involved, be sure to keep all the paperwork.
Start by investing in a filing cabinet. This small expense will save you both time and money. Create a filing system that works for you – ideally with folders and easily identifiable categories.
A sampling of the kind of items you should save:
*Receipts
*Warranties
*Invoices
*Bank statements
*Tax forms
*Credit card bills
*Insurance policies
*Copies of your will
*Medical information
Now, you may wonder really how important this really is. Let me tell you, it can definitely save you money. You have far more power negotiating a broken dishwasher or dealing with peeling paint if you can prove that you purchased on item or service.
In addition, saving paperwork will help you with your taxes and verifying your billing statements are correct. Many warranties are only valid if you can provide the warranty paperwork. If you lose something like a credit card or checkbook, having a file with phone numbers and recent statements can make a bad situation far better.
This is the kind of money project that is critical, but requires some discipline. Similar to creating an emergency savings fund, getting organized and collecting paperwork takes initial efforts that can pay you back in the long run. While it is no fun to sort and file, it is even less fun to have your new washing machine leak and you can’t find the original receipt to prove to the store you actually bought it from them.
Even if an item doesn’t have a warranty, showing up with a good case and an organized file will often help your situation if there is ever a problem. It can help you sell your car if you can keep track of all your maintenance with receipts. Saving credit cards bills and bank statements can help you prove you made a payment. Ultimately, paperwork defends you against problems and misunderstandings down the road.
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