Organizing Papers- Create a System that Works for You
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Tax season is almost upon us. If you haven’t already organized your papers and created a system to keep track of those papers, now is the time. If you have a home-based business your needs will be a little (or a lot) more complicated than if you don’t. I like to go through my filing cabinet every year, usually in January, and purge everything I no longer need and move last year’s bills and statements that I need to keep for tax reasons to my archive file boxes. Most are kept for seven years, but some papers such as legal documents, you may have to keep forever. If in doubt, ask your accountant or lawyer.
Keep important documents that you may need to keep forever or that are more difficult to replace, like passports, birth certificates, wills(copies), power of attorney forms, immunization records,etc. in a fireproof safe box. Another alternative is a safety deposit box at a bank for things you don’t need to access often.
Step One for organizing papers... Declutter...
Before you can organize and create a system for your papers that works for you, you need to go through everything, piece by piece. Purge the obvious papers you do not need…junk mail, store flyers and advertisements, expired coupons, warranties and manuals for items that you no longer own or that cannot be easily accessed online. Almost everything can be found and /or saved in digital form now.
When discarding, shred anything with your personal information and recycle the rest.
Step Two...Decide on your filing system for papers to keep...
If you don’t have a ton of papers to keep, a file envelope system such as these two, might be enough for you. Years ago I had a large four drawer filing cabinet when I had a business. Now my “business” is mainly rental properties and blogging. I also keep some papers for hobbies and other interests. Amazingly enough I can fit it all into one of my file drawers.
Step Three to organize papers...Sort into categories and label folders...
Your categories can be as simple or as detailed as you want them to be, depending on your needs. You could have a folder for bills to pay, and separate folders for each type of bill (hydro, gas, insurance, etc.) that you have to pay. I actually use a folder in my Budget Binder for my bills to pay and then file them in my file drawer for up to a year.
If you like to keep any papers that I like to call general information (travel brochures, magazine articles,etc.) you will need to make a folder for these too. Go through these regularly and get rid of them when you no longer need them.
Step Three...Organize by category, by colour, and alphabetically or numerically...
My main categories are Financial, Work/Personal, and General Information which I use a specific colour folder for each. The files are organized first by category (such as property) and then alphabetically – gas, hydro, insurance, mortgage, etc. When I had a store years ago, I had a numerical system that had a master list for each of the categories. Do what works best for you and your situation. I’ve come to the conclusion that simple is best.
Throwback video...
A few years ago I used the Kon Mari method to declutter all my papers and then reorganized them. You can see the video of that here. I have since minimized my current files into one file drawer in my built-in cabinet.
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