Huh? Physical finances? Well, quite simply, I mean your papers. Yes, your old checks, your paid bills, your old tax returns. These need to be organized so that you can make quick work of finding something when you need it. (Like tax time - 11 days away!!) Treat your family's finances like you would a business. Believe me, if you don't get a handle on it, someone else will - and they won't always be the trustworthiest sorts.
First, start by designating an area for your "financial stuff". If you have a computer desk, this is a great place. But it can be anywhere. You just need a place that you can organize your papers and not have too many other hands shuffling through them. A box in the closet is good, too. Try checking out your local office supply store. They do great deals on small, two drawer filing cabinets. This is ideal.
Next, sort through your papers, and gather them into the separate categories. A pile for old checks, a pile for old bank statements, a pile for credit card A's statements, a pile for the gas bills, etc. One vendor, one file. If you haven't been keeping your old bills, well, it's time to start. You should always keep all of your records for at least six years - hey, that's the tax man's deal, not mine - and make sure that you can get to them in case you have a - gulp - audit.
Here's how I keep all of my bills: I keep the customer portion of the bill and staple the carbon copy of the check I used to pay the bill to the vendor. You should also stamp (or handwrite) the date paid, amount paid, and check number.
I create a separate file for every vendor. This makes finding old copies of bills quick and easy! This sounds really simple, but believe me, when you need to find something fast, or if (heaven forbid) you are ever audited, you will thank yourself for having the foresight to organize yourself!
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