Ever lost an important document, or had a hard time finding documents in the mix of other papers? Well, even though it’s happened to all of us at some point, it doesn’t have to happen again!
Last post (Organizing Financial Records: What Do I Really Need In The Shoebox?) we discussed tips on which documents you actually need to keep. Today I’ll share some additional advice from Broadridge Investor Communication Solutions. Following this advice on storing and organizing financial records may save you time and money in the long run.
Where should I keep my financial records?
The answer depends on a few factors, including the number of records you have, the length of time you plan to keep them, and how easily you would like to access them. A classic file cabinet (with clearly labeled folders) may work well for some people, but if space if tight other options include electronic storage on a desktop or cloud storage.
Saving your files to your desktop is an easy way to clear out the clutter and still keep complete records. If you already have documents online, you can simply save them instead of printing them out. Other hard copy documents can be scanned and saved to your desktop as well. If you opt for the desktop route, make sure you save backup copies on a reliable portable storage drive or hard drive, and make sure that your files are secure.
Cloud storage is another option that has been growing in popularity, and could even be used in tandem with the desktop option. Cloud storage is simply uploading and storing your files with an online backup service. Be sure the cloud service you choose encrypts your uploaded docs for security, and look for a company with a reliable reputation and good technical support. Many companies also offer automatic backup, and are available at a reasonable subscription cost.
Staying organized
When it comes to keeping your records in order, remember the easy catchphrase, “out with the old, in with the new.” For example, when you get this year’s auto policy, discard last year’s. When you get an annual investment statement, discard the monthly or quarterly statements you’ve been keeping. Doing an annual “sweep” or “spring cleaning” of your files is a great idea to keep your filing system on track (doing this at the same time each year may be helpful).
Just as you are careful with the storage of your current sensitive information, be careful to protect the information you throw away as well. It is a good idea to invest in a good quality shredder, and destroy any document that contains any personal information (i.e., account numbers, Social Security numbers, etc.).
Whatever system you choose, keep it simple. You’ll be much more likely to keep your records organized if your system is easy to follow.
Happy filing!
