January is a great time to refresh your financial health. However, organizing your paperwork without protecting your digital life is like locking your front door while leaving windows wide open. This blog is a step-by-step guide to creating financial organization and security systems that protect you and your sensitive information.
Recent data shows adults 60 and older lost $2.4 billion to financial scams, with email as the contact method in nearly a quarter of fraud reports. This month, during Financial Wellness Month and Data Privacy Week (January 26-30), organize and protect your finances by following this step-by-step guide to create a system that keeps you secure and organized.
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Financial Organization: Physical Files
First, gather all your financial documents, sort them by category, and then by date within each category.
- Active bills and statements: Put these in the front of your filing system so they are easily accessible for your monthly financial records.
- Tax documents: You must include W-2s, 1099s, receipts for deductions, and any paperwork needed for your tax return without delay. Protect yourself by keeping your tax documents permanently, whether in digital or physical form.
- Estate planning papers: Be sure to collect wills, powers of attorney, trusts, and beneficiary designations so that you aren’t hunting for these in an emergency.
- Insurance policies: Keep current health and home insurance policies and contact information readily available.
- Investment statements: Include quarterly statements, annual summaries, and account information for all of your investment accounts here.
If sorting through years of paperwork feels overwhelming, reach out to a Daily Money Manager for expert help. We can create a filing system tailored to the way you use your documents, ensuring it stays useful all year.
After your physical documents are organized, focus on protecting your digital financial life. Keep reading for more information on the tools we use in our own business.
📁 Setting up a filing system and a purge cycle will help you know what to keep and how long to keep it – How Long Do I Have to Keep This?
Financial Security: Real Solutions We Use
Your inbox has bank alerts, tax forms, medical bills, and insurance updates. Unfortunately, email is involved in 24% of fraud reports, according to the FTC. For peace of mind, actively prevent fraud with a three-part protection plan.
Email Security
Research shows that bank statements carry a high risk of identity theft, and your email shouldn’t make that worse. At True Assisting, we handle clients’ sensitive financial information daily. We can’t risk using email services that scan our messages or train AI on our communications. That’s why we switched to Proton Mail.
Fortunately, Proton encrypts messages before they leave your device, so even Proton can’t read them. There is no ad scanning and no AI training on your financial conversations. An extra layer of protection is essential when you are sending private tax documents or sensitive financial information.
Password Organization and Security
Passwords secure sensitive data, so a trusted password manager is essential for online safety. We’ve advised clients to use them for years, but Proton Pass adds features that matter for finances. Proton Pass creates disposable email addresses that serve as aliases, so that if one email address is compromised, your inbox stays protected. Protect your accounts and try Proton Pass for yourself.
It’s easy to think identity theft won’t happen to you—until it does. Use these simple habits to protect your family’s digital life—no technology expertise required – Cybersecurity for Families: Protecting Your Digital Life
Creating Digital Files
In the case of a house fire, flood, or stolen documents, having digital backups of your physical files will give you peace of mind. We recommend storing encrypted copies of estate planning documents, tax returns, insurance policies, and important financial records in your digital files. When you use encrypted storage, if someone hacks your account, they can’t open the files. However, with regular cloud storage, the company and potential hackers can see everything you’ve uploaded.
Triple Protection: Email, Passwords, and Files
We use three protection measures as one system: encrypted email links, secure file storage, and your password manager, which safeguards both. Enjoy financial organization and security—all in one place.
Financial Organization Protects You
When you have an organized physical system for bills, insurance policies, and tax documents, you can recognize fraud more quickly because you know what to expect and can verify accounts more easily. Similarly, digital organization and security help prevent fraud before it happens. For example, digital backups act as a safety net in case physical copies are lost or destroyed, and strong passwords keep your online accounts safe from unauthorized access.
Here’s how financial organization and security work in practice:
Let’s say you receive an email that appears to be from your bank. You can quickly verify the account number and last transaction, since your files are organized and accessible. With Proton Mail, you know the email hasn’t been intercepted. Thanks to Proton Pass, your banking password is strong and unique, so if this email is a scam, a hacker still can’t access your account. Overall, you are protected and don’t need to worry about your financial information getting compromised.
🖥️ Digital disorganization doesn’t just waste time—it creates unnecessary tension, drains mental energy, and leaves families feeling perpetually behind – Why Financial Organization Matters and How to Get Started
Four Simple Steps to a Financial Fresh Start
Set achievable weekly goals for each step. For example, aim to complete one step per week. With time, you’ll develop a system that supports your financial organization and security.
1. Get Organized
First, gather all of your financial documents from the past year. Then, make a list of all of your financial accounts, including banks, credit cards, insurance, and investments, so that they are easily accessible. Lastly, comb through your email for important messages from your financial institutions or email alerts you haven’t responded to. After this step, your financial life will be organized, and the foundation for creating new systems to maintain it will be laid.
2. Secure Your Digital Life
- Use an encrypted email service to protect sensitive information.
- Choose and install a password manager to protect all your online account passwords.
- Set up a secure storage vault for important files.
At True Assisting, we recommend Proton because it helps protect your email from phishing and hacking, securely stores your passwords, and keeps your digital files encrypted—all with one account. Proton offers FREE plans, so you can start protecting your financial information today without spending anything. As your needs grow, paid plans provide additional storage and advanced security features.
💰 In a world where financial landscapes are constantly changing, the need for practical money management remains the same – Mastering Financial Organization: Creating a Timeless Financial Calendar
3. Create Filing Systems
As we showed you at the beginning of this blog, organize your important documents in a physical filing system. Next, upload digital copies to an encrypted storage vault. Update your financial passwords to strong, unique ones, which your password manager can help you generate. Then, turn on alerts to get notified of unusual activity.
4. Maintain Your Organization
Choose a monthly review date that is easy for you to remember. Use this time to review accounts and, if needed, reorganize physical and digital files. These “money dates” are a good chance to file new documents and upload digital copies. Then, review your bank statements and check unopened mail and emails so you don’t miss anything.
Ultimately, creating financial organization and security takes time. If you prefer to focus on what you love, Daily Money Management services can handle all of your financial details while you stay informed and in control.
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