How Do You Correctly Set up Your Financial Accounts?


Quick Answer

To set up financial accounts, start with a checking and savings account with a desired bank and create a personal system for tracking finances, notes Schwab MoneyWise. One option is to organize paper and digital documents in folders by categories, such as debts, household papers, taxes, insurance and retirement plans.

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Full Answer

Setting up financial accounts and getting organized is not the daunting task it may seem at first. The key is to work on the project one task at a time.

  1. Open up bank accounts
  2. Research banks and open a checking and savings account with the best local option. Customers just setting up their finances may want to stick with a bank that offers no-fee banking, no minimum balance and no limit on ATM withdrawals or checks.

  3. Set up a filing system
  4. Research multiple systems for organizing financial and other documents. It is possible to organize by category and chronologically. When organizing digital documents, create folders on the computer for each category of file. It can be hard to find space for every piece of documentation. Consider shredding weekly and monthly notices but keeping the annual statements in a safe place, states Smead.com.

  5. Reconcile expenditures
  6. Keep receipts from purchases and double-check them against the checking account. If desired, keep the important receipts in a binder. If there are any receipts not listed in the bank account statement or a higher deduction from the bank account than expected, contact the business to try and determine what happened.

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