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Are you hesitant to go 100% paperless? I certainly was. The biggest reason I was reluctant was that I’m not a fan of the receipt-organizing systems I’ve seen. So, I’ve been waiting for many years to ditch my receipt pile using Monarch Money.
For tax reasons, we have to hang on to our receipts. I have a massive pile in a box from previous years. But this year’s receipts are all being loaded onto Monarch Money instead.
In this post, I’ll cover how I ditched my pile of receipts using Monarch Money.
A logical organizing system
Many of the digital filing systems I’m aware of require using Evernote as the “filing cabinet” for all receipts. This seemed like a huge workaround since you have to email receipts to Evernote and file them in the right place in an app separate from a budget app.
Since using Quickbooks Online (a bookkeeping app) for my husband’s business, I’ve been obsessed with attaching receipts to specific transactions. I can reference the account where the transaction was made and the receipt proof all in one place.
I’ve been searching for a budget/finance app with the capability of attaching a receipt to each transaction, like Quickbooks Online.
After all, when it comes to financial systems, it’s best to run your home like a business.
Why use Monarch Money
In early 2024, Mint announced that it was shutting down and moving users to another platform. Around that time, I heard buzz around a budget app called Monarch Money.
(I was using EveryDollar from Ramsay Solutions but I’ve been on the hunt for an app that gave me similar features as Quickbooks Online.)
With Monarch Money, I can see all my accounts (including banking & investments) in one secure place, along with transactions occurring in each account. I can create budgets, set goals, and find reports on spending, cash flow, and income. (These reports allow me to see percentages for each budget category.)
In addition to these features, you can add users, such as your spouse, to the same account. This is fantastic for communicating about your finances!
Monarch Money is a paid budget app but because it’s paid they can offer all these outstanding features ad-free. (Get a 30-day free trial here.)
Since this post is about ditching your receipts, let’s dig into how to do that using Monarch Money.
Ditch the receipt pile
When first setting up Monarch, you’re given suggested budget categories. Monarch tries to match the transactions from your accounts to each category. It takes a little bit of work up front but the app allows you to create rules so that transactions automatically end up in the correct categories in the future.
Once all your transactions are loaded and categorized correctly, attach your receipts.
Here’s the process I use:
- Using the Dropbox* app on my phone or the scanner attached to my laptop, I scan each receipt to a folder labeled “Receipts”. I rename each file with the date of the transaction, the merchant, and the amount. (Ex. 07.15.24 Costco $100)
- Next, I open the “Transactions” area of Monarch Money. I locate the transaction, click the arrow, then scroll down to “Upload a File”. Then I upload the receipt, and that’s it!
- If you have emailed receipts, simply save the files with the same filing conventions as PDFs and attach them in the same way.
- Once the receipts are uploaded, I’m free to shred all the papers and clear out my email inbox and delete the receipts I no longer need from the “Receipts” Dropbox file.
*Note: There is a free version of Dropbox with limited storage space. If you’re using it only to scan then upload receipts, you should still be able to use it without paying extra. I already have an account to back up my photos.
Now I can easily look up receipts based on the budget category, merchant, or date. This is much better than my previous system of throwing all the receipts into one file! This makes it much easier at tax time if I have to figure out how much I spent out of pocket in different categories. Monarch does all the adding up for me!
How I fit this into the Paper Hubs System
If you’re familiar with the Paper Hubs System I teach, this fits right into the system.
Since all the receipts are added to the Actionable Paper Hub throughout the week, I added the process described above to my CEO Day when I sort the Actionable Paper Hub.
Admittedly, this process does add a bit of time to my CEO Day. However, it will save me time later on during tax season, physical space in my home, and digital space on my Dropbox.
How I’ve ditched my receipt pile using Monarch Money
I was hesitant to go paperless but now that I’ve found a system that makes sense, I’m ready to begin making the switch!
It only took setting up my account to know that Monarch Money was the perfect app for me …but I still took advantage of the 30-day free trial.
Are you ready to ditch your receipt pile with Monarch Money? Try it free for 30 days here>>>
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