It’s important to store personal, financial and legal documents in secure but easily accessible locations. If you don’t you may find yourself searching frantically for lost, displaced or difficult to access documents during an emergency.
Keeping track of important documents
A systematic plan for keeping track of important documents and records will not only prevent you drowning in paperwork, but will also save you hours of searching frantically for lost, displaced or difficult to access documents during an emergency. Now is the time to take a fresh look at the types of records and papers you should be keeping and where and how you should be storing them. It’s actually quite simple.
First tale note of what to keep:
Family records
Family records are important because they verify your very existence and legal identity. They include the following:
Birth, death, adoption, marriage and divorce, baptismal and confirmation records, citizenship and naturalisation papers, medical and immunisation records, education records such as diplomas or degrees and licenses to practise, employment records, CVs, etc.
Legal and financial records
Keep and store the following key legal and financial documents:
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- Housing lease or rental agreements, mortgage agreement and payments, utility deposit receipts, property tax records, etc
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- Vehicle loan documents, registration and title deeds
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- Documents pertaining to present financial obligations such as utility bills, credit and debit card bills, student loan repayments, alimony and child support, and elderly care
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- Financial and bank account names, addresses and phone numbers, card numbers and monthly statements of deposits and withdrawals
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- Documents pertaining to investments made in mutual funds, stocks, bonds, real estate, etc
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- All policy documents, for example homeowners, auto and life insurance
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- Sources of income documents such as pay stubs, government benefits, alimony and child support
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- Tax statements and returns
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- Estate planning documents such as wills, trusts and power of attorney
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- Retirement funding records
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- Living wills specifying your end-of-life care instructions.
Where to keep your records
There are two main factors to consider when deciding where to store important records and documents, namely security and ease of access in an emergency. Here are four common places where people store documents:
At home
A home filing cabinet is probably the least secure place to keep documents but it is also the most accessible. Buy one that can be locked up to add some form of security.
A small fire-proof safe, locked with a key or a combination and bolted down, or hidden somewhere a thief can’t easily find it, is a safer option. Personal access is easy but do share the location and the combination with someone you trust in case you are not around and documents in the safe need to be accessed quickly. To make doubly sure nothing gets lost; place original documents in your heavy duty fireproof/waterproof safe and store additional certified copies in a safety deposit box.
At the bank
A safety deposit box is a fireproof metal box kept at your bank. The bank restricts who can access your box, even if the person has the key to do so. This makes it difficult to get to the contents in an emergency or after banking hours. It is, however, a very safe location for irreplaceable documents and items such as heirloom jewellery.
With your lawyer
Leaving important documents with your lawyer is a relatively safe option but with some of the same restrictions as having a safety deposit box. Unfortunately, legal firms have recently become the target of online hackers and can also be burgled.
Online
Online document storage allows you to store digital versions of documents online and to control access with a login and password. You or a trusted other person, who knows your login and password, can access important documents quickly and easily from any computer, at any time during an emergency. However, do get expert help to set up security checks and balances to protect your information from hackers.
Sources
Edelman, R. Important Document Checklist: what to keep, store, or shred. 2014. Retrieved from: http://www.edelmanfinancial.com/education-center/articles/i/important-document-checklist-what-to-keep-store-or-shred
Good record-keeping is key. Retrieved from: http://southafrica.smetoolkit.org/sa/en/content/en/5039/Good-record-keeping-is-key
How to store legal documents and personal records Retrieved from: https://www.rocketlawyer.com/article/how-to-store-legal-documents-and-personal-records.rl
Be smart protect your critical documents and valuables. Retrieved from: https://www.fema.gov/media-library-data/1395861094548-8b4300b082ced42be701c089ce1640b3/Americas_PrepareAthon_Safeguarding_Valuables_508.pdf
Your important papers: what to keep and where. Retrieved from: http://store.msuextension.org/publications/FamilyFinancialManagement/MT199611HR.pdf