Storing financial and other important documents

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Storing financial and other important documents

Hate to mention tax season in December but I'm curious how everyone keeps financial documents stored for the year. Do you have a filing or organization system that has proven to work well? What about longer term items like insurance policies, legal paperwork. I bought a little fire safe for my mortgage, marriage certificate, and life insurance paperwork but my brother feels important paperwork like that should be kept in a lockbox (like at a bank).

 

I use a tax preparer and I always have to scramble to figure out if I still have a receipt, or if I can find documentation for deductions. Appreciate any tips anyone might have for someone trying to get organized. 

2 REPLIES

Re: Storing financial and other important documents

I have a two drawer filing cabinet (old school, I know) that I've used for years. The top drawer contains the current year active obligations with dividers for each obligation (loans, CC's, etc.). At the front of the current year, I have a folder for receipts I need to keep for tax purposes. In the bottom drawer, I keep all of the historical paperwork. Each year when I prep taxes I move all of the current year documents to the corresponding historical folder. It sounds complicated but it's actually really simple and it keeps everything handy in a logical place for when we might need to reference or pull info in a hurry. 

 

I've long considered switching over to a digital system for just receipts but it hasn't been as easy as I thought it let go of the filing method I've perfected over the years. Smiley Very Happy


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Re: Storing financial and other important documents

Hi @Reeta, depends how skittish you are with online safety. I have a fireproof box for marriage license and Social Security Cards for the family, (passports as well). But regular paperwork (contracts, licenses, bills etc) are in a harmonica folder. Super 1960's. 

 

Lately our accountant has asked for everything electronically, so I started filing things under a google drive folder or on a secure server with the accountant. Ie: when I get my monthly utility bills emailed, I upload it straight to that folder.