While in the midst of tax season, it can be stressful finding the necessary records to get your taxes done. Have you sworn to yourself every year during this time you will keep better records for next year? But, it never really ends up the way you hoped? There are also the questions of “How much and how long do I keep the records?” or “Why do I need to have a record keeping system?”
Just like other important records, keeping financial records are also a vital part of your life. They are a key to your credit standing, justification on your taxes and providing a continuing indication of your financial progress. A systematic plan of keeping important papers can save you hours of anxious searching and make it easier to cope with emergency situations. However, it is more than a matter of neatness and order. Legal and safety factors enter in as well. Legal documents that are difficult to replace should be kept in a safe-deposit box or left with your attorney.
Many records should be kept for long periods of time. Before tossing any papers out, review them closely. Anything that is permanent or semi-permanent should be kept. If you have received updated copies of records, it is a good idea to discarded older versions. If they contain any personally identifiable information such as birth date, Social Security Number, debit/credit card numbers, etc—be sure to shred or burn them.
The other consideration is a “Grab-n-Go Emergency Bucket, Box or Backpack.” Emergencies can arise quickly and there will not be enough time to think of and gather everything you want and need to take with you. By creating a “Grab-n-Go” bucket or box with copies of important papers, you can easily and quickly pick it up and leave with all the information you are going to need. Some of those important papers include: credit and banking information, driver’s license, birth certificates, insurance information including auto, health, medical and home, any important medical information such as medication and immunization records, household inventory list, usernames and passwords for accounts accessed on the web, extra sets of keys to auto, home, safety deposit box or safe, and enough cash to purchase fuel for vehicles, food, and lodging for several days.
Some key pointers for creating a home filing system, a list of records to keep, how long to retain and what papers to carry with you can be found in MontGuide #199611HR Your Important Papers: What to Keep and Where. This FREE MontGuide can be accessed online at msuextension.org/publications/FamilyFinancialManagement/MT199611HR.pdf or by contacting our office if you would like a printed version.
Additional information is available by contacting Janell at the Chouteau County Extension Office at 622-3036, janellb@montana.edu or in the Chouteau County Courthouse at 1308 Franklin St in Fort Benton.
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Montana State University, US Department of Agriculture and Montana Counties Cooperating. MSU Extension is an equal opportunity/affirmative action provider of educational outreach.
