Financial Fitness Challenge, November—Organize Your Financial Records

by Susan Tiffany, CCUFC

Introduction

I sold a used car this summer. Could I find the title to sign it over to the new owner? Nope.

Recently, I was sorting through a box of paperwork that I'd put aside "for now" some months ago and found—to my horror—two checks that never got deposited. One was for $44, a refund for tickets to a canceled play. The other was for more than $200, reimbursement from my flexible benefits account. Could I have used that money all this time? Yep.

Now this is embarrassing to share, but I want to reassure you that I struggle with stuff just like you do. Hey, we've all got issues, right?

"A pile of clutter is a pile of decisions that haven't been made," says Marcia Weuve, owner of ImpactSolutionz, a professional organizing firm based in Austin, Texas. Weuve says the lament, "I'm drowning in paper," is the most common phrase she hears from clients.

She points out that physical clutter turns into mental clutter. People tend to feel out of control and just walk away from the mess—at a cost. Weuve cites a Harris Interactive finding that "23% of adults surveyed said they pay bills late (and thus incur late fees) because they can't find them."

Weuve says you can regain control by starting small—tackle one drawer at a time, or just the desktop, for example. And she cautions against a common piece of paper management advice, to handle each piece of paper just once. "That's not even realistic; it's a myth that people can just get out of their minds." That was music to my ears.

Here are some more ideas about getting the paper mess under control:

• Reduce it. You really don't have to receive six or seven credit card offers a week—all items you need to shred before recycling. Reduce unwanted credit offers by calling 888-5-OPTOUT (888-567-8688), or applying online at optoutprescreen.com. The three big consumer reporting companies use the same toll-free number and Web site to let consumers choose not to receive credit offers based on their lists. Note: You will be asked to provide your Social Security number, which the consumer reporting companies need to match you with your file. This is one of those times when it's OK to provide it.

• Recycle it. I have taken to moving from my mailbox to the recycling bin—lots of catalogs and unwanted mail (things that don't require shredding) go right into the bin and never make it into the house. B'bye.

• Rethink it. Are you getting magazines that you never read anymore? You can notify the publisher that you want to cancel the subscription and receive a prorated refund. It may not be much, but cutting down on the paper avalanche may be reward enough. Too many catalogs? Try a free service from catalogchoice.org that lets you decide what catalogs you'd rather not receive. You still can shop for whatever you want on retailers' Web sites.

• Relocate it. When something comes into your hands that requires action, place it in the spot that will make it easy to follow through. A notice that you need a dental checkup? Put it by the telephone so you can make that call for an appointment. Announcement of a community meeting? Mark it on your calendar right away, then pitch the notice. A request for a donation? File with other philanthropy requests and sit down once a month to decide what rates a donation.

• Redirect it. For any bill that offers the option, receive it and pay it online. Arrange to have your monthly statements delivered by e-mail, and that's another document you won't have to shred and recycle. Use online banking to reduce paper clutter and improve the odds of catching any account fraud resulting from ID theft. "Go as paperless as possible," Weuve advises. Use direct deposit instead of receiving paper checks whenever that's an option.

Once you weed out and identify what needs filing, there are many ways to organize your files. You'll find links to examples in the Useful resources sidebar. Scan through those ideas and adapt a system that appeals to you. Each system is personal, Weuve says. "Some people like to use something color-coded, some by month—do what works for you."

Monthly maintenance

This month's basic maintenance task is to cross-cut shred sensitive documents before you dispose of or recycle them. This used to be an extreme step for most consumers, but these days it should be part of your normal routine to protect against identity theft.

As you pay bills and review statements and offers coming into your home, set aside in a folder or shoebox anything you need to shred. What to shred?

• Statements from your credit union and other financial service providers—anything that includes your account numbers (keep some statements if you need them for warranty or insurance coverage)
• Anything that includes your Social Security number
• Unused courtesy checks for advances on your credit cards
• Preapproved credit offers
• Charge receipts
• Copies of credit applications
• Insurance forms
• Physician statements
• Expired charge cards

ST
Susan Tiffany, CCUFC
askem@cuna.coop

Published November 1, 2007, Reviewed January 14, 2008

Printed Thursday, January 8, 2009

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