Can't find that file? Try these simple alternatives

by Center for Personal Finance editors

BOULDER, Colo. (6/1/06)--If you can't remember if you filed your phone bill under "P" for phone, "T" for telephone, or "S" for Sprint, try a different system--one that's simple enough to track your spending and help you maintain control over your records (Bottom Line Personal June 1).

A thorough yet complicated filing system that relies on memory causes a lot of folks to put off filing for months or until the piles are stacked a foot high. The answer: Keep it simple. Here are some smart alternatives:

File bills by month, rather than by category. You'll speed up the process and be more likely to file regularly. Besides, if you need to find a bill quickly, you usually can find most bills fairly easily by color or size.

Archive filed documents by the year you can toss or shred them. Let's face it--we don't need all those documents forever. Sort them by the year you can throw them out.

File receipts for major purchases by room rather than by category. For example, if you buy a new television, file all related documents--receipt, manual, warranty--under "Living Room" or "Family Room." When you get rid of the TV, get rid of those documents.

Track small purchases on the backs of ATM slips. Note the date and amount of each small purchase to track how you spend petty cash. Keep ATM receipts in your wallet until you get your monthly statement.

Keep files from getting more than five inches thick. If they do, come up with subcategories.

Pay bills electronically. You can control the date your payment is sent and reduce paperwork.

Make sure you and your partner use the same system. This will cut down on miscommunication, overdraw charges, and late fees.