You Need an Old Fashioned Money Paper Trail

Dear Friends,

I have been spending the past few days trying to reconstruct our 2010 finances (husband’s business and our personal) so that I can get the paperwork to my tax accountant brother so he can submit my tax return.  That’s right.  It is the middle of July and we still haven’t filed our tax return.  Why?  Two days before I was going to zip off my data file to my brother in February, our computer crashed and I discovered, too late, that the backup system I had in place also failed.  Thank goodness for the paper trail!

Fortunately, it is only four months worth of record-keeping that I have to reconstruct because I was using old-fashioned methods before I decided to make the leap to digital money management.  As you can imagine, despite everyone saying how much they love digital money management, I prefer the paper-pencil method, instead.  And, for me, it is much faster and more mobile.  And I don’t have to worry about someone hacking into my computer and running off with my financial information.

Worth the read:

A MONEY-SMART LIFE: Paper trail, filing system still essential in digital age by Carey Denman who is a writer and editor with the American Center for Credit Education, a nonprofit publisher of financial education materials.

As a psychologist, I know that systems have been put into place that make it easier for us to part with our money by making spending “less real.”  Having a paper trail helps keep us more accountable and honest with ourselves over our spending habits.

Is it time for you to have a mid-year financial tune-up?

To your fabulous Technicolor life!

Dr. Julie-Ann