The Road to Financial Success

To achieve financial freedom, you need to have a system in place that will help you organize all of your important, and not so relevant, financial documents. Doing so will allow to analyze your situation and make any changes necessary to help you achieve a lifestyle that does not involve living paycheck to paycheck. Here is a list of things you can do to get started.

  1. Start a file for your tax returns. Keep all of your tax returns for the previous seven years. Attach all of the supporting documentation such as W-2 forms and additional schedules. During an audit, you will have everything you need, plus you can analyze your income and any refunds that you receive from year to year.


  1. Keep track of any retirement accounts. If you have a 401k plan or a pension through your employer, keep track of all of your transactions. You should get monthly or quarterly statements. Keep them so you are aware of your retirement savings.


  1. Track all of your savings and checking accounts. Each month, you receive a statement from your bank or credit union. Keep all your statements. If you do online banking, make sure to create an online file for all of your accounts.


  1. Create a debt file. In this file, you will keep track of all of your debts. If you have a mortgage payment, car payment, or credit card debt, all records and information belong here. This record will help you to keep track of where your money is going.


  1. Insurance. If you own a home, you should keep a copy of your homeowner’s insurance policy. The same goes for any vehicles that you own. Keep track of all of your insurance policies.


  1. Family Will. If you are like many, you probably do not have a will. Do yourself a favor and create one as soon as possible. Keep it filed away safely with the rest of your relevant documents.


  1. Monthly Expenses. Here is where you will keep track of any of your expenses. Put all of your receipts in this file, including grocery store receipts, gas receipts, and anything that you spent money on during the month.


With all of your information organized, you can easily track where you are spending your money. If you are spending too much, you can make the necessary changes to get back on track. If you have too much debt, you can always find a creative way to pay it down or pay it off entirely. If you own a vehicle, you can always take out a low interest car title loan from Embassy Loans. The loan could be used to consolidate credit card debt, for example, lowering your monthly payments and allowing you to pay off your debts much quicker. Paying your debts is a big step toward financial independence.