Getting your money matters organized
To be able to create wealth, you need to have a Money Notebook. Regardless of whether or not you set this up manually, or electronically, you need to have it. Without it, you won't be able to have a summary of your finances at a flip of a page and you will waste countless hours chasing after something that you should ALWAYS have at your fingertips.
A financially fit mom sets aside 1 hour per week in getting the financial papers organized. After having read just about every GET ORGANIZED book, I realized I have to tackle this in the way my brain works, in small chuncs of time!!! Since I normally don't have an extended time to "think about it,", I created my own system: A three ring binder with 33 tabs. (4" Three ring binder $6.99, and 33 tabs $13.99 at Office Depo).
This helps in managing not only your financial documents, but also your time. Getting smart about organizing your financial papers won't happen overnight. It does however requires a commitment. During the next month, dedicate 1 hour each week (preferably on Thurs.) to thinking, talking, and learning about money management. I figured if Thurs. was the day, that I had to plan around it. Kid games, no games, business meetings, I will plan for one hour each Thurs. night to get financially organization.
After a while, financial planning will become part of your normal routine. Talk with your spouse or partner about working on your plan together. Some of us will chose to go it alone, just because it is easier. If you are a single mom, you have it easy. No one to report to other than yourself. If you are a married mom, you have to decide if it is easier to do it yourself, or to ask your hubby for help. If you ask for help and don't get it, just promise yourself that it won't turn into anger. Just do it yourself.
Organize Your Financial Documents
Becoming your household's money manager requires that you know, or can obtain, detailed information about your finances.
Some of the documents that you should keep in an easily accessible Money Notebook (three ring binder) include the following:
1. Bank statements for 12 months. After 12 months, file them away in a folder in your file cabinet.
2. Credit card information for 12 months. After 12 months, file them away in a folder in your file cabinet.
3. Mortgage and Line of credit information for 12 months. After 12 months file them away.
4. Investment information. You need a ledger or investment statements for 12 months PLUS the year-end statement for the last 3-5 years.
5. Insurance policies (latest insurance cover sheets). Keep a folder for full copy in your file cabinet.
Life Insurance
Car
Health
Home Owners
6. A copy of the first two pages of last year's tax returns. Keep a full copy in your file cabinet.
7. A copy of your wills/trust and instructions about where the original documents are kept.
8. A summary of your asset inventory in the first tab.
9. A summary of your debt inventory in the second tab.
10. A summary of your financial goals for the next three years in the third tab. Review this weekly.
Some important financial papers that should be kept in a safe deposit box at a bank or credit union. They include the following:
A. Birth certificates
B. Death certificates
C. Marriage license
D. Divorce papers
E. Military discharge papers
F. Original of Wills/Trust.
Contributed by: Penny Port, Mom and financial coach.
Mina N. Sirkin is a Family Wealth Lawyer and a TV Legal Expert in Los Angeles, CA. Ms. Sirkin is Certified as a Specialist Attorney in Estate Planning, Probate and Trust Law by the Board of Legal Specialization of the State Bar of California. MSirkin@SirkinLaw.com. http://www.SirkinLaw.com.
Copyright 2008 Mina N. Sirkin
