Some time ago, we defined assets as any item of value that you own and can sell or access easily. We threw in terms like depreciation and liquidity to round out the meaning, and we all now understand that an asset is often better exemplified through a bank account than a shoe collection.

Going entirely paperless may be great for Mother Nature, but it may create a nightmare for your loved ones later. Those online payments mean user ID’s and passwords, and if they are not written down, your loved ones may have trouble putting your finances in order.

If something were to happen to you right this instant — say you keel over in excitement from all the great information on MomVesting — who would know what you owe and to whom? Would they know your login information? Probably not. That’s the problem with going paperless.

Before joining the forces of the self-employed, I previously worked as a paralegal. The firm I worked for dealt with Life Care Planning (aka estate planning). When we asked clients to bring their financial documents with them to the next meeting, they came in with literally boxes upon boxes of paperwork, some of it relevant, most of it not. One of my jobs was to wade through the piles and pick out those choice items that were actually relevant, make copies, and then create a Life Care Binder for them.

Let's face it -- when your surroundings are more organized, your life is more organized. The same holds true with finances. Creating a physical area in your home where you can store financial materials and track your financial progress is an essential step in the financial planning process.

Order Out of Chaos