WebsiteCompass 15 Troubling Statistics About the Finances of U.S. Households According to a recent survey conducted by Capital One and The Decision Lab, 77% of Americans feel anxious about their financial situation. They worry about not having enough money to retire (68%), keeping up with the cost of living (56%), and managing debt levels (45%). Statistics shared on ramseysolutions.com are also cause for concern. Only 49% of Americans say they have at least $1,000 in savings for emergencies and 33% have no savings at all. Capital One offers these tips for reducing moneyrelated worries: • Create big picture goals. They could include buying a house or saving for retirement. When you know what you want to achieve, figuring out a plan for doing it will seem less cumbersome. • Share financial goals. Discuss financial goals with family, close friends, and financial professionals to get their advice and support. • Limit regret. Rather than looking back at past mistakes, look forward and think about what you can do today to make your situation better. It’s important to take some sort of action, even if it’s just a baby step like saving a little more per month. Sources: cnbc.com/select/how-to-take-control-of-your-finances, ramseysolutions.com/ budgeting/state-of-personal-finance Keeping good records is part of overall financial fitness. But, with so much paperwork involved, it can be difficult to know which documents you need to keep and for how long. Here are some tips. Documents to Keep Forever Some documents are so important that you should hang onto them for your entire life. You can keep them in electronic or paper format, but the best approach is to do both. Tax returns. Tax returns are an important part of your financial history, so hold onto them indefinitely. Records of major financial events. Any number of situations can fall into the category of a major financial event, including legal filings or inheritances. Birth and death certificates. These documents may be requested in a wide range of legal or financial situations. Social Security cards. You may have the number memorized but hold onto the card for proof in case you ever need it. Marriage licenses and divorce papers. These papers are important for proving your marital status. Military discharge documents. Your military status can have an impact on interest rates and other financial considerations, so hold onto these papers. Life insurance policies. Life insurance is one of those things you hope to never need. But, if you do, you’ll have the necessary documents to collect the payout. Wills and living wills. By definition, these documents are necessary at the end of your life. Be sure to also give copies to those who will need them. Documents to Keep for a LimitedTime Other financial documents are also important but can be disposed of after a certain length of time. Supporting tax documentation. While you may need your tax returns at any time, the paperwork that goes into preparing them is less important. Keep it for three to seven years. Bank and credit card statements. Banking documents could be important for verifying certain purchases. Keep them for one year. Pay stubs. You may need pay stubs to verify the accuracy of your W-2 during tax season. So, it’s a good idea to keep them for one year. Utility bills. Hold onto your utility bills until you know your payment has been processed. Keep them for one month. Deposit and withdrawal records. Retain your deposit and withdrawal slips until you ensure they coincide with your monthly statement. Keep them for one month. Be sure to keep documents secure. Put paper documents in a safe, little-accessed area. When you’re ready to dispose of them, use a shredder. For electronic documents, store them in organized folders and back them up to a cloud-based account. Which Financial Documents Should You Keep and for How Long?
RkJQdWJsaXNoZXIy MTMzNDE=