Remember the last time you were scrambling around trying to find that one crucial piece of paper? I bet you can feel the stress sweat start just thinking about it. I am passionate about supporting our clients at Simmons with tools to ease the stressful side of banking. This month I wanted to share some of those tips with you.

Managing your finances effectively starts with proper organization. As a bank manager, I often see clients struggle with misplaced documents, leading to stress and delays in financial decisions. Whether you’re applying for a loan, preparing for tax season, or planning for retirement, having your financial documents in order can save you time and frustration. Here’s a step-by-step guide to organizing your financial paperwork efficiently.

1. Categorize Your Financial Documents

Start by sorting your financial documents into categories. Some essential ones include:

• Banking and Investment Records – Bank statements, investment account summaries, retirement account details, and certificates of deposit (CDs). Be sure to note which banks you bank at, whether it’s one or multiple financial institutions. We find more often than not that those left behind after someone passes don’t know this pertinent information. 
• Income and Tax Documents – Pay stubs, W-2s, 1099s, tax returns (keep at least seven years), and deductible expense receipts.
• Debt and Loan Records – Mortgage statements, student loans, car loans, and credit card agreements.
• Insurance Policies – Life, health, auto, homeowner’s, and disability insurance documents.
• Estate Planning Documents – Wills, trusts, powers of attorney, and beneficiary designations.

Once categorized, you’ll have a clearer picture of your financial status and what needs attention.

2. Choose a Storage System

Your financial documents should be stored in a secure yet accessible manner. Here are a few options:

Physical Filing System – Use labeled folders or a filing cabinet for paper documents. Keep critical items like wills and property deeds in a fireproof and waterproof safe.

• Digital Storage – Scan and save documents on a secure cloud service or an encrypted external hard drive. Digital copies ensure accessibility even if the originals are lost or damaged.
• Physical Filing System – Use labeled folders or a filing cabinet for paper documents. Keep critical items like wills and property deeds in a fireproof and waterproof safe.
• Hybrid Approach – Maintain hard copies of essential documents while keeping digital backups for convenience.

3. Implement a Regular Review System

Organizing isn’t a one-time task—it requires maintenance. Set a schedule to review and update your financial documents at least once a year. Tax time is a good time to do this because you’re already gathering most of these documents together to file your taxes. This includes:

• Discarding outdated documents (shredding sensitive ones to prevent identity theft).
• Updating insurance policies, wills, and retirement plans as needed.
• Reviewing account statements and ensuring all records are accurate.

4. Secure Sensitive Information

Financial documents contain personal information that could be exploited if mishandled. Take these precautions:

• Use strong passwords and two-factor authentication for digital financial accounts.
• Shred documents containing personal details before disposal.
• Store physical copies in a locked, fireproof safe.
• Limit access to financial records to only trusted individuals.

5. Share Key Documents with Trusted Individuals

In case of emergencies, a spouse, family member, or financial advisor should know where critical financial documents are kept. Consider creating a financial roadmap that outlines account details, insurance policies, and key contacts. This ensures a smoother transition if you become incapacitated or pass away.

Keeping your financial documents well-organized reduces stress, improves financial decision-making, and protects you from fraud or loss. Take small steps today to get started, and you’ll enjoy greater financial clarity and security in the long run. If you need help, consult a financial advisor or your bank for guidance on managing your documents effectively.

Pop by and visit me and my team at Simmons Bank at 117 Raymond Hirsch Parkway in White House. Or give us a call at 615-285-2265.