{"id":1819,"date":"2008-05-20T11:00:35","date_gmt":"2008-05-20T18:00:35","guid":{"rendered":"http:\/\/getrichslowly.org\/blog\/?p=1819"},"modified":"2024-03-05T12:57:44","modified_gmt":"2024-03-05T19:57:44","slug":"my-paperless-personal-finance-system-a-work-in-progress","status":"publish","type":"post","link":"https:\/\/www.getrichslowly.org\/my-paperless-personal-finance-system-a-work-in-progress\/","title":{"rendered":"My Paperless Personal Finance System: A Work in Progress"},"content":{"rendered":"

\"\"Last summer, as a part of my quest to get rid of clutter, I began to move toward paperless personal finance<\/a>. I had planned to share my system only once I’d perfected it, but yesterday Daniel e-mailed to ask for a glimpse of its current state.<\/p>\n

To go paperless, you might need a scanner (or some other way to convert your documents to digital files). I also recommend using a shredder to dispose of paperwork. (A shredder is one of the best defenses against identity theft<\/a>.) Here’s how my current paperless personal finance system works after nine months of trial and error.<\/p>\n

<\/span>Handling income<\/span><\/h2>\n

Having your employer electronically deposit your paycheck for you is the first step in going paperless. This wasn’t an option for me at the box factory. Now, however, I have each of my sources of blog income automatically deposited to my business checking account. This reduces the risk of mail and identity theft, and saves me the hassle of running to the bank.<\/p>\n

This business account adds a layer of complexity to my finances, but because I’ve automated everything, it’s not too bothersome. Most of my income sits in business checking for months on end. I make quarterly estimated tax payments from this account (a process that is not<\/i> automated), and retain some of the rest for other business expenses (read: more taxes at the end of the year). Once per month, I transfer a “paycheck” to my personal checking account at the local credit union. This amount is roughly equal to my former income at the box factory.<\/p>\n

<\/span>Juggling accounts<\/span><\/h2>\n

Most of my “paycheck” remains in checking, from which it is automatically transferred to various monthly bills. (The only bill I still pay by check is the mortgage. The mortgage company wants $11 for an electronic transfer. I’d rather pay 42 cents for a stamp.) The rest of my money is divided among three savings accounts:<\/p>\n