Copyright Goodheart-Willcox Co., Inc. 47 Section 2.1 Personal Financial Landscape Spending records to keep include: • bank statements and checkbook registers • receipts from purchases and bills paid • statements from credit accounts and • cash register receipts for big purchases. Receipts serve as proof of payments. They are especially important for fixed expenses, such as loan payments, and for major purchases, such as a road bike. They also may be needed for warranty services, settling dispute, or exchanges. Keeping receipts for minor purchases, such as cosmetics or movie tickets, is a good way to keep track of your spending. If you have trouble staying within your budget, you may want to record all purchases for a time. Then you will have a clear idea of where your money goes. It is important to keep track of bills. Due dates for bills should be monitored so you can pay on time and avoid late fees. If you receive bills by mail, place them in a box or drawer until you are ready to pay them. The due dates and your paydays will dictate your bill scheduling. Pay the bills that are due first. Many people pay bills on a regular schedule, such as every Sunday night or at the end of the month. If you lose track of your bills, you run the risk of paying them late or not at all. Documents Important personal documents and information should be accessible by anyone you designate to handle your financial and legal affairs if you become unable to do so. A legal document is a paper that can be filed with a court officer or used to uphold an agreement in a court of law, such as a marriage certificate, auto loan, mortgage, or credit card agreement. Examples of important documents to keep in a secure place are as follows. • Personal information such as birth certificates, Social Security cards, medical records • Savings and investment information such as securities and investment records, including stocks, bonds, and mutual funds • Tax records such as income tax returns and Form W-2s • Estate planning documents such as wills and trusts, adoption papers, insurance policies, mortgage papers, tax records, property deeds and titles, pension plans and employee benefit documents, business partners or co-owners, executors names and contact information for people responsible for the management of your affairs, including wishes you want carried out if you die, and instructions to be followed if you are incapacitated gualtiero boffi/Shutterstock.com A recordkeeping system should be simple and convenient such as a desk drawer, file cabinet, or fireproof box to keep important papers together in one place.