Managing Money:
Creating a Record System
Keeping Records in Order
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| Record Keeping |
Every family has an accumulation of papers and records, which are important to them. But for many of us, getting those papers in order is like Mark Twain's old saying about the weather: "Everybody talks about it, but no one does anything about it." Is that how you feel about record keeping? Use the Record Keeping Work Sheet to see if you know where your important papers are located. If you answered "no" to two or more of these questions, it's time to make some changes in your record-keeping habits now!
Keeping records may not be enjoyable to you, but it is necessary. Having a good system for keeping important papers can save time, money and effort. Organized record keeping:
- Makes it easier to find information on a day-to-day basis.
- Provides security for hard to replace important documents.
- Provides proof of any transactions.
- Helps in handling various emergency situations.
- Makes it easier for someone else to locate important papers.
- Proves ownership in a lawsuit, inheritance or property fight.
- Helps with property settlement in a divorce.
Mastering Your Records
The best system for record keeping will vary from family to family. Certain decisions need to be made before setting up a system or improving an old one.
- Decide on one place to keep all of your records. You need an organized system. Just tossing old receipts into a shoe box isn't enough.
- Decide which family member will have the major responsibility for doing the record keeping. However, everyone in the family needs to cooperate and understand how the system works. Spouses/partners might switch places once a year to be sure both know what is going on with the records.
- Set a specific time to handle all of your bookkeeping and try to stick to it. If you establish a regular routine, it can cut down on the actual time you need to do the record keeping.
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