Copyright Goodheart-Willcox Co., Inc. 46 Chapter 2 Personal Financial Planning Recordkeeping As you enter the workplace and take on adult responsibilities, certain documents and papers will become important in managing your affairs. The process of setting up an organized system for important documents is called recordkeeping. Keeping track of financial records is an important part of money management. Well-ordered records can help you stay within your budget and make adjustments as needed. It is helpful to keep money management records over a period of time so you can review your current financial situation, evaluate your progress, and plan for the future. A recordkeeping system should be simple and convenient. A desk drawer, file cabinet, or fireproof box can be used to keep important papers together in one place. Some people keep their most important financial and legal documents in a safe deposit box at a financial institution with copies in their home files. Information stored on your computer should be organized, secure, and password protected. Data may include bill payment records, contracts, tax forms, and e-mail correspondence related to financial and consumer matters. Financial software or web- based money management programs can guide you in setting up your financial affairs so you can locate information as you need it. To prevent losing important documents should your computer fail, backup copies should be placed on a CD, USB flash drive, or external hard drive. Up-to- date security software should be installed to protect against viruses and thieves who target financial information on unprotected websites. Financial Records Financial records related to your banking business and credit cards should be kept as well as records of income and spending. • Savings and checking account numbers, names on each account, and the name of the financial institution where each account is located • Credit card and charge account numbers, the name of issuer, expiration dates, names of persons authorized to use each account, and numbers to call for lost cards • PINs (personal identification numbers) for cash or debit cards and passwords for online accounts Income records to keep include: • paycheck stubs • statements showing interest earned on savings accounts • records of dividends and • amounts of cash gifts, tips, and bonuses. Diego Cervo/Shutterstock.com A budget is a tool that helps an individual take control of his or her finances.