Guest Author - Guido Deboeck

This is all about how well you organized your financial data. Maybe you have thought about all of this and are well organized, but read on nevertheless there maybe some things you still can improve.

Do you know where your financial data is? Is it on paper or on a computer? If on paper do you know what folder and where that folder is located? If you have to think more than 10 seconds about this, it is in the wrong place!

If you have your financial data carefully stored on paper, can you reach it easily? If you have your records in an office and that office is on the second (or third) floor you may not be able to get at it in case of an emergency (e.g. like a fire). Move your paper records closer to an exit and make sure you remember where. Can your records possibly be damaged by water? A damp basement, flooding, think about all what could possibly go wrong at the location where you keep your financial records.

If your financial records are on a computer, in some spreadsheets, can your computer easily be reached? Obviously records stored on a laptop are easier to carry away than those on a desktop.
If on a computer, are your data files regularly backed-up?

I suggest you start by checking how well protected your system(s) is (are). If you have Norton Anti-virus or some other utility, did you set up a Task for your computer to daily download the virus definitions? Does your system perform daily an entire virus check? Also add a weekly full system scan. These essential tasks are easy to setup and can provide a great deal of protection. Beyond those essential measures also consider running weekly the defragment utility on both internal and possibly external hard disks.

OK, your system is now properly protected against the external environment (at least I hope so). Let’s consider your financial spreadsheets. Start with setting up a Backup of all your data files to your hard disk using the Windows Backup Utility. Schedule this daily, preferably late in the evening or at night after you may have made changes to the data.

If you have large hard disk --or even if you have just a tiny one -- try to organize your files so that you can partition your drive in two or three partitions. Then setup a backup of your financial data to a different partition than the one you work from.

If you have an external drive -- even beter -- backup also to your external drive. Ideally you should have multiple backups of your critical financial data on more than hard disk or on more than one partition of the your internal drive. Maybe you also want to have your most critical data on a floppy, CD or DVD (use rewritable CD or DVD). Make sure to store those media in a different location than your computer.

Besides backing up spreadsheets with financial data, think also about the security of your bank and brokerage account information. Put all bank and brokerage account information in one file or document, again properly backed up and maybe even encrypted. Put all your password information in a little agenda book --I still prefer paper than any computer files for this—and keep that agenda with say your checkbook or credit cards. Make sure also to make a Xerox of all credit cards and store those in a safe place.

These and other ideas should keep your financial data safe. I welcome other suggestions for keeping financial data even safer. One last piece of advice: don’t postpone or procrastinate taking these steps, do them today.

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