The 'in case of emergency' money file: What to keep, where to keep it

Even if you are comfortable with physical files, a digital mirror is essential. Scan all key documents and store them in clearly named folders

Most families discover the importance of financial organisation only after something goes wrong. A hospitalisation, sudden death or legal notice often triggers a frantic search for bank details, insurance papers, passwords and nomination records. The problem is rarely the absence of documents. It is that no one knows where they are, which version is current, or whether something important is missing.

Organising financial documents is not about creating a perfect archive. It is about making sure that, if you are unavailable, someone you trust can quickly understand your financial life without guesswork.

The most important document is not a policy or a statement. It is a simple master index. This should list every financial relationship you have, even if documents are stored elsewhere.

The list should include bank accounts, fixed deposits, credit cards, loans, insurance policies, investments such as mutual funds, shares and bonds, retirement accounts, lockers, digital wallets, and any overseas assets if applicable. Alongside each item, note the institution name, account or policy number, and whether there is a nominee.

This index becomes the map. Everything else supports it.

A common mistake is organising papers bank-wise or investment-wise. That looks tidy but becomes confusing for family members. Instead, group documents by what they are used for.

Keep identity and core records together. This includes PAN, Aadhaar, passport, marriage certificate, birth certificates, and address proof. These are often required first, even before accessing money.

Next, keep all insurance documents together. Term insurance, health insurance, vehicle insurance and home insurance should be in one folder, with policy numbers, insurer contact details and claim helpline numbers clearly visible. Do not bury insurance under investment paperwork.

Loans and liabilities should form another section. Home loan, personal loan, education loan and credit card statements belong here. Include current outstanding amounts and repayment schedules, because families often underestimate liabilities during crises.

Investments and savings can form the final major section. Mutual fund statements, demat account details, EPF, PPF, NPS, fixed deposits and savings accounts can sit together, with notes on how withdrawals or claims are made.

Even if you are comfortable with physical files, a digital mirror is essential. Scan all key documents and store them in clearly named folders. Avoid vague names like “Bank” or “Insurance”. Use plain language such as “Health insurance – family floater” or “Home loan – lender name”.

Cloud storage works well if access details are shared responsibly. An encrypted folder or password-protected drive is better than scattering files across email inboxes and devices.

The goal is not secrecy. It is controlled accessibility.

Passwords should never be written directly on documents. At the same time, keeping them only in your head defeats the purpose of organisation.

The safest approach is to use a password manager and leave clear instructions on how to access it. Alternatively, maintain a sealed note with login instructions stored in a secure place, updated periodically.

What matters is that your family knows where to find access, not necessarily the passwords themselves.

Nomination details and your will should never be hidden. Keep copies with your main financial folder and clearly mark them as the latest version. If your will is registered or stored with a lawyer, note the contact details prominently.

Many families lose time because they know a will exists but cannot locate it or confirm whether it was updated after major life events.

No system works if it lives only in your head. At least one trusted family member should know that a financial folder exists, where it is kept, and what it broadly contains.

You do not need to explain every investment choice. You only need to remove uncertainty about where to start.

Financial lives change. Accounts close, new investments are added, nominees change. A once-a-year review is enough to keep things current. Treat it like updating emergency contacts on your phone.

Good financial organisation is an act of care. It does not just protect money. It protects your family from confusion, delays and avoidable stress at a time when they can least afford it.