Audio: Store financial documents digitally
When it comes to storing important financial documents, a tattered shoebox just won't cut it anymore. These days, Americans are expected to save supporting documentation. Tax receipts, W-2s and credit card statements should all be kept for as long as seven years.
Failure to keep proper records may land you in hot water with the IRS. In fact, the IRS has even cracked down on charitable donations, often calling on donors to produce bank records or written receipts.
Storing records digitally can keep records from getting lost -- or falling into the hands of identity thieves. There are Web-based storage services that allow users to store everything from electronic tax records to documents that have been scanned to a hard drive.
USB flash drives are another way to keep track of information. With storage capacities ranging from as small as 512 megabytes to as large as 64 gigabytes, these portable devices slide into the USB port of any desktop or laptop computer. Users can store, swap and share documents, music, video clips and pictures.
Other ways to store your financial information include external hard drives and CD-Rs. So find out what works best for you and get to storing. You never know when you may need your records.
To find out more on storing financial information, log on to Bankrate.com, I'm Haley Lyons.