Recent news about the devastating L.A. fires has highlighted the importance of being prepared for emergencies. While personal belongings like clothing and furniture can be replaced, critical financial and identification documents are much harder to recover if lost.
To help you safeguard your financial information, here’s a guide on what to prepare and how to store it securely:
1. Essential Identification Documents
Keep copies of these items in your emergency kit:
- Driver’s license or state ID.
- Birth certificate.
These documents are vital for proving your identity in case you need to file insurance claims or access resources after an emergency.
2. Financial Account Information
Prepare a document listing:
- All institutions where you hold accounts (banks, brokerages, credit unions).
- Account numbers for each institution.
- Policy numbers for all insurance coverage.
This ensures you can quickly access or manage your finances during a crisis.
3. Tax Documents
While tax documents are often bulky, they’re essential for many financial and legal situations.
- Your accountant or tax preparer may already have copies of your tax returns and related documents available through a client portal. If so, download these for your records.
- Store digital copies on an encrypted external drive or a secure, encrypted cloud-based storage option such as iCloud (for Apple users), Google Drive, OneDrive, Dropbox, Sync, or Box.
4. Backup Storage Options
In addition to hard copies, maintain electronic backups of all important documents. Use the following:
- Encrypted external drives for offline storage.
- Secure cloud services for accessibility from anywhere.
Be Proactive, Not Reactive
Natural disasters and emergencies are unpredictable, but you can reduce stress and uncertainty by preparing ahead of time. Having copies of your financial documents readily available can make a significant difference in navigating the aftermath of a crisis. Take the time to gather and securely store your information today—you’ll be grateful you did.
