HomeFinancial FreedomHow to Create Your "Runaway Folders" to Keep All Your Important Documents?

How to Create Your “Runaway Folders” to Keep All Your Important Documents?

“The only way to permanently change the temperature in the room is to reset the thermostat. In the same way, the only way to change your level of financial success ‘permanently’ is to reset your financial thermostat. Your financial thermostat is the internal programming that determines your financial comfort zone. By resetting it, you’re changing your beliefs and attitudes towards money, which can lead to a higher level of financial success. But it is your choice whether you choose to change.” – T. Harv Eker

Life is full of unexpected surprises and emergencies, which can disrupt our plans and cause significant inconvenience. Being prepared for such situations is crucial, and one way to ensure you’re always ready is by creating what we call ‘Runaway Folders’ for all your important documents. These are comprehensive folders that contain all your vital information and are designed to be easily accessible in case of emergencies. Here’s a guide to help you organize and protect your vital information using this system

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The Importance of Being Prepared

A friend recently missed an important business meeting because he couldn’t find his Aadhar Card at the airport. This incident made me realize how essential it is to always have quick access to our critical documents. Imagine being in a job interview and realizing you forgot your post-graduation certificate or being away from home when you must submit an insurance premium. Such scenarios highlight the need for a robust document management system.

Creating Your Runaway Folders

I recommend creating five primary folders for your documents to avoid these stressful situations. Assign each folder a distinct colour to easily identify them:

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BLUE: Protection Related Folder

  • Life Insurance
  • Health Insurance
  • Car Insurance Policy documents
  • Health Cards
  • Premium Receipts

GREEN: Property Related Folder

  • All your property-related original documents

YELLOW: Banking Related Folder

  • Bank lockers
  • Savings accounts
  • Other bank-related documents

RED: Bills/Receipts/Warranty Cards Folder

  • White goods
  • Gadgets like mobile phones which may need replacement

PURPLE: Education and Important Documents Folder

  • Graduation and Post-Graduation degrees
  • All other certificates in originals

Digital Copies and Cloud Storage

In addition to physical copies, create scanned versions of all these documents and store them in a secure cloud storage service. This ensures that you can access them from anywhere in the world, providing an extra layer of security and convenience. No more worrying about losing or damaging your important documents!

Emergency Black Box Kit

Prepare an ‘Emergency Black Box Kit’ for your family. This should include all essential documents and instructions on what to do in case of an emergency where you cannot communicate. This folder, which is a part of our ‘Runaway Folders’ system, will help your family quickly organize your financial life if needed. It’s like having a portable office that contains everything you need in case of an emergency.

Runaway File

Finally, compile all these folders into a ‘Runaway File.’ This file should contain photocopies of all your important documents and be easily accessible. In case you need to leave your home quickly, you can grab this file and have everything you need to start afresh in a new place. To create a ‘Runaway File,’ simply gather all the folders you’ve created and place them in a secure, easily accessible location, such as a fireproof safe or a locked drawer. This ensures that all your important documents are in one place and can be quickly retrieved in case of an emergency.

Also read: Why “How to Get Rich” by Felix Dennis is a Must-Read for Aspiring Entrepreneurs

Conclusion

Life is unpredictable, and preparation for any eventuality is essential. Creating and organizing your Runaway Folders will help you avoid unnecessary stress and ensure you always have your important documents. These smart steps will enable you to live a smooth, hassle-free life, ready to face any challenges that come your way.

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Legal Disclaimer

The information provided in this article is for general informational purposes only and should not be construed as legal, financial, or professional advice. While we strive to ensure the accuracy and reliability of the information presented, we make no warranties or representations of any kind regarding the completeness, accuracy, or reliability of the content.

Estate planning and writing a Will involve complex legal processes that vary depending on individual circumstances and jurisdiction. It is highly recommended that you consult with a qualified attorney, financial advisor, or other relevant professional to obtain advice tailored to your specific situation. The use of this article and any reliance on the information contained herein is solely at your own risk. We disclaim any liability for any loss or damage arising directly or indirectly from the use of this article or the reliance on the information provided. Always seek the advice of a licensed professional with any questions or concerns you may have regarding estate planning and Will preparation.

The author of this fictional story, Taresh Bhatia, is a Certified Financial Planner and advocate for female empowerment. For more information and personalized financial guidance, please contact taresh@tareshbhatia.com

He has authored an Amazon best seller-“The Richness Principles”. He is the Coach and founder of The Richness Academy, an online coaching courses forum. This fictional story serves educational purposes only and does not constitute financial advice. Consultation with a qualified financial professional is recommended before making any investment decisions. An educational purpose fictional story only and not any advice whatsoever.

©️2024: All Rights Reserved. Taresh Bhatia.

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