Organizing Financial Documents

 

Organizing Financial Documents

Organizing our Financial Life: It's always a great idea to have all the financial documents organized in one place, so that people/families whom we believe, know the facts.

Mistakes People Often Make..

Family is not aware about the investments: 

Most of the time the issues start with these types of mistakes. When your spouse/children are not aware about the investments made by you, there could be multiple reasons for this, you might feel uncomfortable sharing the details, most of the time, it happens to be the case because of a lack of time to spend/sit with the family members to share these financial information details, you need to adjust your schedules/ work-life balance to let them know about the investments and the purpose of those investments.

Random Investments:

It’s a human tendency to forget a few things which you have done in a hurry. Sometimes we invest randomly for the sake of tax deductions or for the sake of our friends (for their target achievements), later we forget those investments. It's not fair to forget your own investments, whether it's random or regular, it's better to note down these kinds of unplanned investments in your dairy or any other file and keep it accessible for your family members or you can upload your all documents in investmentjunctions mobile app .

Scattered Documents: 

Sometimes, it is human behavior to keep the things scattered which are highly important. In Particular, financial documents are not kept in one place. Let’s take an example, gone were the days where, at the time of a new job joining, we were usually allocated with some of the insurance policies out there by the insurance agents /brokers. Here keeping the policy documents safe, is the crucial factor where we generally fail at. It should not be kept scattered. However, nowadays, it's all online. Do remember all the credentials to open your files/ access your accounts.

Reasons for Mistakes 

 It’s not just common for our clients, even we as financial planners, make these kinds of mistakes. Due to your busy work life, we don’t keep our focus much on maintaining things in a disciplined way. The reasons could be,

1. Scattered Transactions: Investments made across physical and digital platforms Within physical platforms, documents are saved in Bank, Office and Home lockers Within digital platforms, made across Demat accounts, Individual MF portals, etc. 

2. Busy & hectic life: With Personal, family & social commitments, people have no time to get organized. 

3. No trustworthy person: Family members and loved ones are trustworthy but when it comes to finances, people are uncomfortable disclosing everything.

Consolidating Documents When we start consolidating the documents, the following are the categories of financial information, in which these documents appear.

● Insurance, 

● Investments, 

● Bank, 

● Loans, 

● Unorganized creditors or debtors and

 ● Other important financial documents.

There wouldn’t be any fulfillment unless you do this consolidation of all financial documents. 

Raja Bhattacharjee

https://www.investmentjunctions.com/