Have you ever been standing in line at a store waiting for someone who was trying to return something without a receipt?   I have experienced this many times.   Once I was standing behind a woman who had a pile of children’s clothing to return.    Because she had no receipt, the store could not help her.   She walked away saying she would have to donate it.    Another time, I was in a home improvement store and a man was trying to return something that was broken.    Without a receipt, the store had no proof that he actually bought it there.   Over and over again, I see this happening, and I always think how important it is to have a filing system to save bills and receipts.  

           This simple, organizational tip can end up saving you both time and money.   January is the perfect month to start a filing system for your family.   As the New Year begins, setting up a financial filing system can play a key role in getting your financial house in order.

            Years ago, when the Holy Spirit began teaching our family His ways of handling money, we developed our financial filing system.    Since then it has become a way of life.    It has made returning items much easier.    When something goes wrong with an item and you need to use the warranty, it is easy to find.    Most importantly, when a bank, insurance company, or utility provider questions a bill, you have the written proof at your fingertips to resolve the issue.   

            So, where do you begin?   The two main things that you need are standard-size file folders, and a box to keep the folders in.     You can purchase these items at any Walmart, Target, or office supply store.    A plastic file box should not cost more than $10.00.   

            After purchasing your supplies, you are ready to start.     You simply mark each file folder by category.   For example, you should make a folder for groceries, household, clothing, medical, electric bills, phone bills, warranties, etc.    Be sure to make categories for anything you spend money on and any bills that you pay.    Customize the categories to your life.

    After you have established your categories, place the files in the box.   Then train yourself and every member of your family to stop throwing away receipts and bills.   Instead, train yourselves to file them at the end of each day.    It will take less than 5 minutes a day, sometimes not even that, but the benefits will be well worth the effort.  As you can see, getting started is very easy.  

Here are a few suggestions of different categories you may want to make file folders for:

1.      GROCERY RECEIPTS

            At first, we did not save our grocery receipts.   Then we bought several 5-lb bags of sugar that were contaminated.    If you have a receipt, groceries stores will take back damaged groceries.    Without a receipt, they can’t really be sure where you bought it.    That’s why we save our grocery receipts for 2 months.   For instance, right now I have receipts for December in my files folder, and receipts for November stapled together.    Next month, I will throw November’s receipts away and staple December’s receipts together.    Then I will start saving January’s grocery receipts.   

2.      BANK PAPERS

            If the bank sends you paperwork of any kind, file it away.   Checking account statements, savings account statements, IRA, 401K statements, anything that comes from the bank should be kept.    Why?    Banks are run by computers.  Inevitably, computers make mistakes.   Having a hard copy on paper will help settle any disputes that arise.  In fact, if all your interaction with the bank is online, I would advise you to periodically PRINT your statements and keep them in your filing system.  

3.      INSURANCE