There are a few financial documents everyone should have in their home.
A copy of their lease (or mortgage).
A pay stub.
Credit card bills.
Investment documents.
And the last few years of past tax return.
In fact, with the last item, you don't even need some of the first ones.
That's because your old returns are among the most valuable financial documents you have.
It can even save you up to 20% on loans! Why is that? What makes a past tax return so important? First off, it should be noted that most financial documents are really important and ultimately helpful.
Financial documents create a trail of your monetary life.
They should how much you've earned and saved and also how much your debt is.
This kind of information is invaluable to banks when deciding what sort of rates to set...
and it's all on your past tax return! No need to keep on to dozens of other documents if you have just those few pieces of paper.
That's right--pretty much any information a bank would want to know about you is on your past tax return.
Which means that if you keep a few of those around, you won't need to worry about hanging on to those other documents.
You won't even need to keep those pay stubs.
Instead, you can simply save your returns to show what your income in.
Invest any money in the last few years? It'll be on those returns.
Not that keeping other financial information isn't a good standard to hold--but hanging onto your past tax return is an easy way to keep track of everything.
Which also means it's an easy way for people to keep track of you.
And that's not bad! When a bank looks at a past tax return (or even several) they can see where you spent your money, how much you make, how even if you've hit hard times, you're financially responsible.
Which means a bank can look at those old returns and come up with a way to lower your mortgage payment.
Or help you reduce your credit card debt.
Banks hate risk.
They don't want to deal with it.
And after the credit crisis, they're even more risk-averse.
This is good for the banks, but bad for those of us who have had a bad year or two.
Fortunately, the more past tax return you can show the bank, the better track record you'll have.
And the better track record, the more likely you are to get your financial burden reduced.
So don't throw out your past tax return this year.
Put it in a file with your other financial documents.
And then see for yourself just how valuable it can be.
A copy of their lease (or mortgage).
A pay stub.
Credit card bills.
Investment documents.
And the last few years of past tax return.
In fact, with the last item, you don't even need some of the first ones.
That's because your old returns are among the most valuable financial documents you have.
It can even save you up to 20% on loans! Why is that? What makes a past tax return so important? First off, it should be noted that most financial documents are really important and ultimately helpful.
Financial documents create a trail of your monetary life.
They should how much you've earned and saved and also how much your debt is.
This kind of information is invaluable to banks when deciding what sort of rates to set...
and it's all on your past tax return! No need to keep on to dozens of other documents if you have just those few pieces of paper.
That's right--pretty much any information a bank would want to know about you is on your past tax return.
Which means that if you keep a few of those around, you won't need to worry about hanging on to those other documents.
You won't even need to keep those pay stubs.
Instead, you can simply save your returns to show what your income in.
Invest any money in the last few years? It'll be on those returns.
Not that keeping other financial information isn't a good standard to hold--but hanging onto your past tax return is an easy way to keep track of everything.
Which also means it's an easy way for people to keep track of you.
And that's not bad! When a bank looks at a past tax return (or even several) they can see where you spent your money, how much you make, how even if you've hit hard times, you're financially responsible.
Which means a bank can look at those old returns and come up with a way to lower your mortgage payment.
Or help you reduce your credit card debt.
Banks hate risk.
They don't want to deal with it.
And after the credit crisis, they're even more risk-averse.
This is good for the banks, but bad for those of us who have had a bad year or two.
Fortunately, the more past tax return you can show the bank, the better track record you'll have.
And the better track record, the more likely you are to get your financial burden reduced.
So don't throw out your past tax return this year.
Put it in a file with your other financial documents.
And then see for yourself just how valuable it can be.
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