We get it, while many people have gone completely digital, some of us are somewhere in between and still love the feel of good old-fashioned paper. If you’re that person (like myself, Jeremy!), this guide is for you. Even if you have gone digital, some documents like passports, wills, trust documents, birth certificates and death certificates are required to be in the original paper versions to be valid, so a hard copy document management system is still needed.
But hey, if you’re one of those people who loves all tech and digital efficiency, we got you covered as well. Check out our article on “Implementing a Digital Filing System for Financial Documents” to find more helpful tips!
Here is AFP’s 5-step guide on how to set up a solid paper-based system to keep your financial records organized.
1. Sort Your Papers
Start by grouping your documents into categories—taxes, bank statements, receipts, insurance, etc. Grab some folders, label them clearly, and file them by year or by type, whichever makes sense for you. Trust us, it’ll make things so much easier when you need to find something.
2. Store Them Safely
Paper can be fragile, so think about investing in a fireproof, waterproof safe for your most important documents (wills, deeds, etc.). For the everyday stuff, a filing cabinet works just fine. Bonus tip: make copies of the really important papers and store them elsewhere, just in case.
3. Keep It Tidy
Don’t let your files get out of hand! Once a year, go through your folders and shred anything that’s outdated or no longer needed. This will help you avoid drowning in paperwork when tax season rolls around. If your folders are getting bulky, start a new folder to break up that file by selected years. Move the older years into a banker box, and store them in a cool dry place out of water’s way.
4. Blend Paper with Digital (If You Want!)
If you like the idea of a backup, consider scanning key documents and saving them digitally. You’ll have peace of mind without having to fully give up your paper system.
5. Make It Yours
The best system is one that works for you. If you like jotting notes on paper, go for it! Use sticky notes or keep a little notebook with summaries of what’s in each folder. The goal is to stay on top of your financial records in a way that feels comfortable.
In a Nutshell:
Whether you’re all about paper or mixing in some digital, having a solid system for managing your financial documents helps keep life less stressful. Plus, it’s super satisfying when everything’s in its place! – And of course, if you need any help with any of your day-to-day financial needs, you’re just an email or phone call away to get in touch with your expert friends at AFP.
Jeremy Zizmor is the founder of Assurance Family Partners, a company whose mission is to assist and empower individuals and families who need help managing their personal day-to-day finances. He is responsible for running all facets of the business.
