Declutter Your Financial Documents

Simplify, Organise and Take Control

 

By Caty Naude CFP®

 

Life today is full of information and data bombarding us every minute, making it easy to feel overwhelmed. Decluttering your financial documents simplifies this part of your life and significantly reduces stress. An organised financial system provides peace of mind, ensuring that everything you need is easily accessible and up to date. When this aspect of your life is in order, you can focus on what truly matters without worrying about missing or misplaced documents. Follow this straightforward guide to declutter your financial documents effectively.

 

1. Gather, Sort, and Categorise Your Documents

Start by collecting all your financial documents in one place. Having everything together helps you identify duplicates or outdated documents and gives you a clear picture of what you have. Once gathered, sort them into relevant categories, such as:

• Tax

• Bank and Investments

• Insurance – Life Policies and Short-term Insurance

• Property and Real Estate

• Debt

• Personal Identification

• Estate Planning

• Employment and Income

• Business (if applicable)

• Miscellaneous

This sorting process will help you quickly see what's essential and what can be discarded.

2. Decide What to Keep and What to Shred

Not all documents need to be kept indefinitely. For example, keep tax returns for at least five years but shred old utility bills after a year. Be clear about what needs permanent storage and what can be safely discarded.

3. Go Digital

Digitise your documents to reduce physical clutter. Many financial institutions offer electronic statements. Scan essential documents and store them securely on a cloud service. Sharing access with a spouse or trusted family member can ensure important documents are always accessible when needed. Remember to back up your digital files regularly to prevent data loss.

4. Set Up a Filing System

A simple filing system is key whether you prefer physical or digital storage. For physical documents, use labelled folders or a filing cabinet. For digital files, create clearly named folders like “Tax Returns,” “Bank and Investment Records,” or “Insurance Documents.” Regularly update your filing system to keep it organised.

5. Maintain Regularly

Decluttering is not a one-time task. Review your documents every few months, or at least annually, before meeting with your financial advisor. Regular maintenance ensures your system remains organised and up to date.

6. Complete an Estate Directory

An estate directory can centralise all your important information. This includes details about assets, liabilities, insurance policies, passwords and more. Contact Ascor Independent Wealth Managers CC for more details on obtaining and completing this directory.

Conclusion

Decluttering your financial documents is more than just tidying up—it's about gaining control and peace of mind. By organising, digitising, and maintaining a streamlined system, you reduce stress and simplify managing your finances. Act today and enjoy the clarity and confidence of a well-organised financial life.

 

Read more about Ascor® Financial Planning Services

 

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