7. "Credit Card DEBT." Make sure you capitalize the word "DEBT" so it stands out and bothers you every time you see it. I'm not kidding. In my view, credit card debt is the biggest problem facing American consumers today. In Step 3, I will lay out a detailed plan for how you can pay down your debt as responsibly and quickly as possible. Right now simply create the folders—a separate one for each credit account you have—and keep your monthly statements in them.

8. "DOLP™ Worksheet." DOLP stands for "Dead On Last Payment." This is the system for paying down debt that I have taught for nearly a decade. I will explain exactly how it works in Step 3. (You can download the worksheet from

9. "Credit Scores." This folder is for your most recent credit scores, along with the credit reports on which they are based.

10. "Other Liabilities." This is where you keep all your records dealing with debts other than your mortgage and your credit card accounts. These would include college loans, car loans, personal loans, etc. Each debt should have its own file folder, which should contain the loan note and your payment records.

11. "Insurance." Make separate file folders for each of your insurance policies, including health, life, automobile, homeowner's or renter's, disability, long-term care, and so on. Each of these folders should contain the appropriate policy and all the related payment records. If you have any employer provided insurance (e.g., medical coverage), include all the brochures and other informational material you've received from your company.

12. "Family Will or Trust." This should hold a copy of your most recent will or living trust, along with the business card of the attorney who drafted it.

13. "Children’s Accounts." If you have children, create a folder for all statements and other records pertaining to college savings accounts and any other investments you may have made on their behalf.

14. "Latte Factor®." Here is where you keep your Latte Factor worksheet PDF. For some of you, this may be the most important folder you create.

Learn more about the Latte Factor

Do you have any financial organizing tips? Share you sercrets below.

Download chapters from David Bach's book Start Over, Finish Rich
Excerpted from Start Over, Finish Rich by David Bach Copyright © 2009 by David Bach. Excerpted by permission of Broadway Books, a division of Random House, Inc. All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.


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