5 ways to organize your finances

1. Sort and categorize your finances

Begin by sorting through your documents. Singh recommends creating broad categories to use smaller and more manageable collections of documents. Some suggestions:

• bank, mortgage, and credit card statements
• utility bills
• contracts
• important receipts

2. Know which financial documents to keep and which you can throw away

Next, purge. Singh says there’s an easy way to prioritize which documents to keep. Decide how difficult they’ll be to replace. For example, that signed mortgage statement is a must-keep. But the bank statement that you can download online? That’s probably safe to shred.

Once you’ve sorted your financial documents, set up your storage system. Labelled hanging folders work best, says Singh. Store them in a filing cabinet or a 32-litre file box. You can find either at most office supply stores or online.

As new documents come in, drop them in the appropriate folder. Once you set up your system, you’ll be able to quickly find any document you need.

3. Create a digital filing system

You might also have a handful of financial documents and bills hanging out in your inbox. But you can use the same organizing steps applied to your paper documents for your electronic ones.

Use folders and subfolders in your inbox or cloud storage to keep track of your financial documents. Try setting up inbox filters to help automate the process.

If you’re storing both paper and digital documents, be sure your filing systems match. That way you can easily find what you’re looking for – especially when it comes to your insurance and investments.

4. Know how long you need to keep financial documents

Keeping your financial statements organized can be very helpful around tax season.

“Canada Revenue Agency says we need to keep financial documents for seven years. That’s why a lot of people feel they need to keep all their receipts and documents,” Singh says. “But the reality is that if we need to keep our documents for seven years, so do financial institutions.”

Shred older documents that you could easily replace. Declutter old receipts regularly throughout the year, including at tax time. If the item is out of warranty or no longer returnable, throw out the receipt.

5. Get help with your finances when you need it

Organizing your finances and setting yourself up may feel overwhelming. Don’t be afraid to ask for help from a professional.

Look for an organizer associated with the Professional Organizers in Canada (or POC), advises Singh. The POC sets ethical and training standards to ensure organizers can help you sort through your financial documents safely. That way, your information will feel manageable and secure.

Now that you’re organized, you’ll feel more prepared to take the next step of talking to an advisor to review your financial situation. Then, a financial advisor can help you make a plan to help meet your short and long-term goals.