5 Ways To Organize Your Financial Records

Organizing your financial affairs is an essential part of good record keeping. Not only does it make it easy for you to get your hands on whatever you need, whenever you need it., but if you should become incapacitated or, heaven forbid, pass away unexpectedly, then your nearest and dearest will be easily able to determine what they need to.

The following is a simple 5-step solution to organizing your financial records.

5 Easy Steps to Organizing Your Financial Records 

• Step 1: organize financial records
• Step 2: organize financial records
• Step 3: organize financial records
• Step 4: organize financial records
• Step 5: organize financial records

Step 1: Organize financial records

The first step to organizing your financial records is to determine what they are. These might include any or all of the following: 

• Tax documents
• Bank documents, statements, checkbooks, etc.
• Insurance papers and cards. Should include any communications with insurance companies
• Loan papers/credit card agreements
• Investment documents and share certificates
• Monthly bills
• Copy of your will and estate plan 
  

Step 2: Organize financial records

Create a physical and online ‘vault’. This will consist of both a literal box with all of these organized documents, plus a virtual copy of the same. Password protect the online copy to ensure security. You might want to provide your trusted significant other or person/family with the password to this. The easiest way to create a digital document is a locked, editable PDF.

Step 3: Organize financial records 

Use technology to simplify life. This could include setting up payment reminders, generating auto-payments, and diarizing important renewal dates—all of which can be set to ‘ping’ you a day or week before they need to be paid.

Step 4: Organize financial records

Make sure important information is kept up to date. This could be as simple as a change of address or phone number, or a change of name after marriage. Remember to include changing the nominations for investments, pensions, insurances, etc., should you have a significant life event change (to include a divorce, remarriage, the birth of a child, etc.). 

Something as simple as forgetting to change an address can lead to significant difficulties should you need to get your hands on saved funds in a hurry. Or, in a worst-case scenario, your family needs to access important information for any reason.

Step 5: Organize financial records

Revisit your financial records on an annual basis. A quick confirmation once a year will ensure that everything is in order. Plus, it’s likely to jog your memory to update any necessary details that you might’ve overlooked. Doing this will negate the risk of bigger problems in the future when time is of the essence regarding your financial affairs. 

One common mistake, especially amongst those who are younger or don’t consider themselves to have many assets, is to push financial documentation organization to a later date. This is a mistake, as you’ll be surprised as to what you do own. Even if you’ve recently started your career and don’t have many financial records to organize, getting into a good habit now will stand you in good stead when your affairs become a little more complicated.

Issues, such as your Employee Provident Fund (EPF), are something that will need actioning when you change employers. Other issues, such as your 401K and other pension or retirement plans are best kept updated for your peace of mind and ease of future planning.

In short, the better organized your financial records are, the less likely you are to store up problems for the future.

Contact Capita: Your expert partner for all financial planning

Capita is a global name that specializes in all aspects of financial planning. Whether you need simple financial record organization, help with your estate plan and will, or advice and management for an investment portfolio, Capita’s expertise is second to none.

Don’t leave your financial well-being to chance. Visit https://www.capitafinancialnetwork.com now and discover the many facets of this world-leading financial institution today.