Keep finance records in order

Editor's note: This is a transcript of the audio file.

The keys to keeping your personal finance records organized are setting up a good filing system, and knowing how long to keep the financial records you put in it. I'm Clark Palmer with your Bankrate.com Personal Finance Minute.

One way to cut back on paper clutter is to opt to receive your bank statements, credit card bills and utility bills exclusively online. Just make sure that you're diligent about checking your accounts and noting when payments are due.

Digitizing your financial records is a great space saver. You can find portable receipt and document scanners starting at around $100.

Bill statements that you don't need for tax purposes can be shredded as soon as you have a paper or digital copy of the cancelled checks.

Keep receipts for major purchases such as furniture, appliances, cars and computers permanently so you can provide proof of their value if needed for an insurance claim.

Also, hang onto records pertaining to assets such as securities and your house or condo. When you sell the asset, you'll need that information to show whether you have a capital gain or loss.

For more tips on organizing your finances, visit Bankrate.com. I'm Clark Palmer.