We spent July “Conquering The Clutter.” In August, we focused on getting some extra “Face Time With The Kids.” (If you’re new to Happy To Be At Home, you can click here to find out what our six-month “End 08 Great Challenge” is all about.)

But this month, we are challenging all of us to get our financial lives in order. If you’re like me, this is something you always think about doing, but never fully commit to because it just seems too overwhelming. Well, during September, that’s all going to change! Together we can encourage and inspire each other to keep at it and get those finances fixed! We hope you’ll join us in this “Fixin’ Our Finances” challenge for the month of September.

Now let’s get to those finances!

First of all, if you are married we encourage you to work closely with your spouse on this challenge. Why not use it as an excuse to fit in some extra quality time for the two of you as well?

This week I want to focus on getting financially organized. Many times we are overwhelmed with our finances because we don’t have a system in place for paying bills or filing paperwork.

The first question many people ask is how long do they need to keep bills, documents, tax returns, etc. According to Bankrate, here is a quick run down of how long you need to keep your financial paperwork.

Tax Returns - 7 years

IRA Contributions - Forever

Retirement/savings plan statements- From one year to permanently

Bank records - From one year to permanently
Go through your checks each year and keep those related to your taxes, business expenses, home improvements and mortgage payments.
Shred those that have no long-term importance

Brokerage statementsUntil you sell the securities

Bills - From one year to permanently
Go through your bills once a year.
In most cases, when the canceled check from a paid bill has been returned, you can shred the bill.
However, bills for big purchases — such as jewelry, rugs, appliances, antiques, cars, collectibles, furniture, computers, etc. — should be kept in an insurance file for proof of their value in the event of loss or damage.

Credit card receipts and statements - From 45 days to seven years
Keep your original receipts until you get your monthly statement; shred the receipts if the two match up. Keep the statements for seven years if tax-related expenses are documented.
Paycheck stubs - One year

House/condominium records - From six years to permanently

After you have shredded your paycheck stubs from 1989, you should have more space to get your finances organized.

I use online bill pay, a service offered free from our bank. I also opted to have my bills delivered electronically. This cuts down on paper and postage. My bills are saved on my computer (which is backed up on a separate hard drive). I know some people are leery of this system, but I have been using it for over six years and have never had a single problem.

Since most of my bills are the same amount every month I have them automatically withdrawn from my account. I receive a notice (via email) a day or two before the withdrawal, and then another notice once the bill has been paid. I have it set up so that if the amount is different, the payment is not withdrawn and I am notified of the change.

• If you own a blog, write a post on your blog. Use Mr. Linky to link your Fixin’ Your Finances.
• Leave us a comment telling us about your challenge.
• Email us about what you’re doing for the challenge

Then we’ll share your plans and ideas (and a link to your post if applicable) in another post on Happy to be at Home.

There are four months left in 2008 for us to end the year on the right foot. We hope that this series has helped you to focus on what is important, to do what is necessary, and feel in control of your life.

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