The easy way to an individualized home filing system that will keep your paperwork organized and safe.
If your papers intimidate you because you never know if you should save them or not, then you need to create a filing system. If the thought of creating a filing system for your personal papers is intimidating, then you can follow these easy steps to create a filing system that is as individual as you are, and will keep your papers in order.
Start with a file cabinet. This does not need to be an expensive, locking, fire, and flood proof cabinet. Very few papers actually need to be kept with that type of security. Something as simple as a cardboard file cabinet will answer your needs quite well.
You will also need a supply of file folders, a pen for labeling the folders, and some time. You can actually do this in steps so that you won't need a large chunk of time to start, and once it is set up will only take about half an hour a week to keep organized depending upon the amount of paperwork generated in your life.
Start by collecting all of your documents together in one place. The ones you have on the computer, on the kitchen counter, the ones hidden away under the bed, or in a closet. Now make your life easier, by separating out current bills, and correspondence, old tax forms, insurance policies, loans, wills etc.
Label one folder for the current year then give it a second label of current bills. You will also have a folder labeled with the year, and current correspondence. Your labels can say anything that means the same thing to you. Now place all your unpaid bills in the current bill's folder and your unanswered correspondence in the current correspondence folder. Do the same with the paid bills and answered letters. When you file the answered letters and bills, make sure that they have a copy of the answer attached, or printed on the back. Bills should have a check number, or payment date and transaction number on them. These four folders are going to be the most used. So they will need to go near the front of the cabinet.
All other folders should go behind them, or in another drawer. When the year is up, all the paid bills can be left in the folder for paid bills and shuffled to another drawer, to the back. The same with answered correspondence. Paid bills should be kept for one full year after they have been paid, unless they will be used in conjunction with tax paper work, in which case they would be filed with the tax paperwork at the end of the year. Correspondence should be kept for six months after a satisfactory conclusion to the reason for writing.
Your insurance policies should be separated out into personal, home, and vehicle policies. Personal insurance policies can include medical and life insurance if you want, or you can separate them. You might even slip all the insurance folders into one main folder labeled insurance, with specific labels for each folder. These folders can go into storage; you will not need to access this information unless you have a claim. These need to be kept until the policies are no longer in use.
Your will, marriage license, divorce decrees, birth certificates, and information about bank accounts and property should be copied and a notarized copy place in your filing system, a fire proof box kept in the home, and in a safe deposit box. This is one of the few times when you will need duplicates of paperwork. The time, space and cost of having these documents in several places will save many headaches if they should be needed.
Now look at the tax papers, you need to keep copies of tax paperwork for at least 7 years, but 10 would be safer. So put all your tax paperwork for each year in a folder and put it in the back, except for the current year. The current year's folder should go behind the first four folders since you will be dropping in receipts, and other tax deductible items through out the year.
Break down the remaining papers into categories, and place in folders. Warranties, school records, etc. Place in your file cabinet. These can be kept until no longer valid, although school records should be kept for life.
If you file incoming papers on a weekly basis you will keep your file system up to date, and organized. Make a note on your calendar to go through the files and eliminate any unneeded papers once a year, usually around tax time is a good idea. Now you no longer need to be alarmed by your filing system, it is organized, and a little bit of time each week will keep it that way.
