Martin Lewis shared a universal rule to stay organized financially on his BBC podcast, and he asked his listeners to send in their ideas for how to save money. One ex-HMRC inspector suggested keeping hold of receipts and financial records for warranty claims, faulty goods, and insurance claims. Martin Lewis said one way to take a record of something is by taking a photo of it on your phone, and the general guideline is to retain financial records for the previous four to six years.
He advised always taking a photo of any financial document you sign up for, storing it on your computer or in a file, because you never know when you might need it. Martin Lewis said we don't know what future mis-selling cases will be or what products you've signed up for now that might have campaigns for money back in the future. He mentioned the current case of car finance mis-selling as an example, where historical car finance deals involved customers not being properly informed of the terms and interest rates.
We don't know what the future mis-selling cases will be. We don't know what products you've signed up for now - there will be some campaign where you can get your money back in future.
If you don't have the documentation, it's a lot harder to get your money back. The Financial Conduct Authority suggests the average case of car finance mis-selling could be worth £700 in compensation. Another listener who is a web developer suggested using a password manager to store passwords and account information for bank accounts and household utilities.
Martin Lewis said a password manager could be a useful tool for a loved one to manage your finances if you're unable to, but only grant access to someone you absolutely trust.
If you don't have the documentation, it's a lot harder to get your money back.
I would always, whenever you sign up for any financial document, I'd take a photo of it, I'd store it on your computer, I'd have it in a file. You never need to use it again. The data cost is irrelevant, because it's just a document. But you never know when you might need it in future.