Keep the documentation until you know you no longer need it. You can cut down on clutter by creating a reliable system for storing your financial documents. Keeping your documents safe is equally important. Whether you have paper documents or electronic versions, here are options for storing your financial documents safely long term.
Many people choose to keep documents stored in a filing cabinet. Use file folders to organize paperwork by subject, year or another method of your choice. Bankers boxes are another storage option, but these are more susceptible to water damage. For your most important documents, a standard filing cabinet might not be enough. The use of a home safe may be a better option. Look for a safe that is fireproof and waterproof for maximum protection.
A simple lockbox you can grab and go is perfect for storing documents in the event of a home fire or flood. Safe deposit boxes used to be a popular method for storing valuables, including essential documents. Not all bank branches offer safe deposit boxes today, but it can be an option if you prefer keeping these documents offsite.
Keep in mind that you are at the mercy of the financial institution as to when you can access your safe deposit box. Many financial institutions and businesses now let you opt for electronic billing and statements, either through email or online account access. Some banks charge a fee for paper statements now, as electronic paperwork becomes more readily available. For other documents, you can use a scanner to scan them into your computer, or you can take photos using your cell phone.
Other digital storage options include external hard drives, like HDDs and SDDs, which are compact solutions for storing massive amounts of electronic data. An even more compact solution is storing electronic paperwork on a flash drive, although flash drives also are easier to misplace or damage. If you go the digital route, it may be a good idea to create multiple backup copies in case one of them is damaged or fails. Digital backups take up much less space than having multiple paper copies of your important documents.
Another option is to go with cloud-based storage for essential paperwork. The past several years have seen an explosion of cloud-based solutions, including:. Even making some simple changes can put you on track to taming your paperwork and:.
So be ruthless. But there are some bits of paper that you should hang on to. There are some documents you can toss. You should probably keep hold of credit card and bank statements for a year but you can throw away other household paperwork like utility bills. You need to put a system in place to avoid creating yet another mountain. Buying a shredder or using a document disposal company should keep your details safe against identity theft. Many companies are moving towards electronic statements to help you reduce your paperwork and give the environment a boost at the same time!
If you get your bank statements online, you can request a hard copy from your bank. When it's time to get rid of bank statements, make sure you use a shredder for any financial records so this can be done with no trace back to you or your bank account. And if you're wondering about your utility bill: OFGEM requires all utility providers to give you at least 12 months of previous bills. If you're using a utility bill as a proof of address, they usually need to be dated within the last 12 months in any case, so if you should be able to share any recent bill.
You can also get a full export of all your transactions by pressing the button at the bottom of your Summary tab. Many banks maintain monthly customer statements online for at least five years and they are easily accessible through their online banking apps and sites.
These statements usually come in printable formats. Summaries of transaction information are frequently available for download. You may be able to get hard copy statements from your bank going back a number of years. Some banks charge a search and printing fees for this service, as it cannot be done at the branch level.
Older statements are handled in a back office. For safety, it's best to keep any hard copy bank statements in a fireproof safe in a secure location. Electronic statements should be maintained in a password-protected file. Use password protection for electronic files. Hard copy statements should be kept in a secure, fireproof location that can be easily accessed. It may seem easier to just keep your records forever rather than setting aside time to organize them.
It's not a great idea, though, primarily because of the potential for identity thieves to get them. Documents that should be shredded include the following:. When you're ready to dispose of your bank statements, make sure you actually shred them. Just ripping them in half, isn't going to stop identity thieves from piecing together your personal information.
Shredders are now small, portable, and cheap. If your paper volume is enormous, shredding services can be bought. Some banks will shred your statements for free on request. Checking Accounts.
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