The older you get, the more complicated your financial life becomes and the more financial records you will have to manage. Most financial record management can be done electronically, but it's still important to keep organized and know where your records are. It's also important to keep in mind that some things, like loan documents, are often still given to you on paper. The table on p. 53 the Personal Financial Readiness reading provides information about how long you should keep various types of documents. Review the table and answer the following questions:

How long should you keep:

• Documents related to filing your taxes? [ Select ]
• Documents related to a loan? [ Select ]

A few extra tips:

• If you receive important documents via email (like receipts for charitable donations that you intend to deduct on your tax return), make sure that you have a system of tagging or electronically filing them so that you can find them later. The IRS can audit your tax return any time in the 7 years after you file your taxes, and if you can't produce the supporting documents that you used to file your return, you may be subject to extra taxes and penalties.
• Many documents are still in paper form. If you buy a house, you will be given a big pile of paper loan documents to take home. If you buy a car, you will receive a paper title and you need the paper title in order to sell the car. In order to apply for a passport, you need a paper copy of your birth certificate. Make sure that you have a safe place to store these important paper documents.
• Immunization records are kept electronically by your doctor, but in my experience, they don't always get transferred correctly from one doctor to the next when you move, and occasionally you need them for some types of international travel and other things. It's a good idea to ask your parents for a copy of your childhood immunization records, and to ask for a printed or emailed record of any immunizations you receive in the future at the time you receive them. Keep those documents (electronic or hardcopy) where you can find them easily if you need them.
• Credit card companies often delete your electronic credit card statements after a certain amount of time (some banks only keep them for a year). If you want to always be able to look back on your past spending, you may need to download your records if you want to keep them.

Answer rating: 100% (QA)

It is very difficult for us to manage the papers in our home with a high degree of care It is very challenging to keep it all organized Though many business firms are moving to a paperless system main... View the full answer