It is wise to periodically review your important papers. Take a fresh look at the types of records and papers you should be keeping at the beginning of each new stage or change in your life. The household might be considered a mini-business since many of the functions of planning, purchasing, and record keeping are the same as they are for any other type of business — large or small.

Importance of Records

You will find that financial records have become a vital part of your life. They are a key to your credit standing, are essential to help you save money on taxes, and also are a continuing indication of your financial progress. If you have systematic plan for keeping track of important papers you can save hours of anxious searching; help preserve peace and harmony; and make it easier to cope with emergency situations.

Record keeping is also important due to legal and safety factors. Many records and papers can be kept in a home file for ready access, while others should be left with your attorney, placed in a safe-deposit box, or put in a fireproof, waterproof, and burglarproof home safe. A good rule to follow is to keep the item at home unless it is a legal document or is difficult to replace or duplicate. Then it should be kept in a safe-deposit box or possibly left with your attorney. Following Hurricane Katrina in 2005, many people have explored the idea of sending copies of very important documents to a trusted relative in another state, and also having copies in a fireproof or waterproof file that could be lifted at a moment's notice.

Filing and Storing Important Papers

Plan and evaluate which papers should be stored, where they should be stored, and which should be discarded. Make the decision and file each paper accordingly. Do not just stack papers and plan to return to them later. This is the way things become lost and cause you to waste valuable time in searching for or replacing them.

A home filing system with a space provided for the important things is the key to managing your important family papers. For items kept at home it is not necessary to have fancy filing cabinets or special “offices.” A “business corner” can be set up in any room in the house. A cardboard drawer or metal box can serve adequately for storage of bills and family papers. Filing systems must be planned to meet your needs. You may not need detailed files at the present time. But remember, every type of important paper should be assigned a certain space, kept there until needed, and discarded if no longer useful.

The following guide to record-keeping will help you work out a personalized and efficient system for preserving and safeguarding important family papers. It will also provide a handy reference for deciding what items to keep, why you need to keep them, where they should be kept, and how long to keep them.

You will note that duplicate copies of many family papers should be kept at home for immediate reference. Important reasons for storing some family papers at certain locations are explained beside each category. However, you must make the final decision about where you will store your documents.

Permanent and Semi-Permanent Records

Keep in a safe deposit box or a fireproof, waterproof, burglar-proof home safe—with a list of the contents of the box in your home file.

Family Records

(Keep a copy of an inventory of important family records also in the home file.)