If you’ve got receipts and statements piling up, it may be time to sort and shred. The IRS requires taxpayers to maintain tax records for all income, deductions or credits claimed on their federal returns for at least three years. Signing up for online statements and paying bills electronically might help reduce paper pileup.
Safeguard important documents
Financial documents such as savings bonds, life insurance policies, deeds and property titles should be stored in a fireproof safe or a safe deposit box at the bank. In the event of a fire or other disaster, these important documents will be preserved. You can even keep photo copies in your home for reference and store originals in a safe and protected place.
Gather your financial statements and list the amount owed on each along with minimum payments and interest rates. From there, establish a play to pay off one debt at a time. Setting up automatic payments for recurring bills such as car loans, the cable bill or monthly mortgage is a one-time task that offers ongoing benefits.