Keeping up with today’s fast-paced world is enough to challenge. Perhaps you commute to work daily, get your kids ready for school before leaving for work, and even go grocery shopping before you finally head home. In addition to all of these struggles, you need to maintain absolute control over your expenses; this is why you want to save. Keeping good records is one way to maintain a financially fit lifestyle.
Records ensure your accounts are organized as they help you keep track of your spending and any deductions from your account. Record-keeping keeps you in control of important tasks like home maintenance and auto repairs. So, while it is important to have and work with a budget, accurate and updated record-keeping is just as important as maintaining a frugal lifestyle.
If you feel like you’re always spending over your budget, it is time to bring all your receipts in one place to get a clear picture of your spending habits.
This article discusses how you can keep your important records, and save money.
Keeping Tax Records
Organizing your tax records will require more than just a jar or shoebox. To keep track of all of your tax deductions, you may consider using a binder to collect different folders for tax payment records, deductions and expenses, income, and anything that will make filing an easy task for you.
Keeping Maintenance Records
Car and home maintenance can sap your pocket if you are not careful. By keeping maintenance records, you do well to avoid costly repairs. It can also help you take note of when there is premature failure of a machine or equipment (possible free replacement under warranty). Track the work you have done on your car and house to save yourself the extra bucks.
Keeping Purchase Records
Keeping records of your big-ticket items is very important. You may need to file a warranty claim, return it, or even file a renter’s/homeowner’s insurance claim. If you are yet to do a home inventory or yours is not up to date, make it a priority to get it done quickly. It doesn’t promise to be fun, but it is worth it.
Keeping Investment Records
No matter how crazy it sounds, it is pretty easy to lose track of old bank accounts, saving bonds and retirement accounts. To keep track of all these, create a list that contains your contact information, account numbers, and account locations, and keep it in a secure place. Ensure you update it often.
Keeping Insurance Records
Keep a record of all your insurance policies in a file. Be it life, auto, or renter’s/homeowner’s insurance, ensure you review and update it regularly. Also regularly check to ensure your coverage aligns with the changing circumstances. For instance, your property may appreciate over time. Keeping records will help you take the required action when necessary.
Final Thoughts
Record-keeping is a compilation of all the things you need. So, as you update your records, look out for those documents that are no longer necessary, and discard them.
Saving your records is one of the most effective starting points to a healthy money-saving habit.
