Day 24: Creating Simple Filing Systems

On Day 23, we talked about conquering paper piles. Today, we’re going to talk about what to do with those papers you deemed important enough to keep. Simplicity is key when you set up a filing system – if it’s complicated, you won’t do it. Staying organized, particularly with paper, can save you time and money and keep your stress levels down, so taking a bit of time to sort through your paperwork and get it under control is time well spent. Filing systems are an individual preference – it doesn’t matter how you file as long as everything has a place and you know where to find it when you need it. Here are a few tips and ideas for filing your important papers.

• Reduce, reduce, reduce. The most important part of paper organization is getting rid of what you don’t need. Be ruthless, and only keep what’s really important – information you must have for financial, tax, medical or other reasons, information you can’t find easily in another location (such as on the Internet), and information that would be difficult or impossible to replace.
• File by kind, according to your needs. I don’t keep receipts in a file folder – I keep them in a rectangular basket. I don’t keep paid bills in a filing cabinet – I keep them in a tickler-style file box which gets transferred to an accordion file at the end of each calendar year for easy tax preparation. Tax receipts and donation information goes in a folder in the same system as the paid bills, also for easy location during tax prep time. Each child has their own box of artwork and memory pieces, not located in my filing cabinet. Our filing cabinet is reserved for items needed for long-term storage, such as home owner’s insurance, medical files, etc. This system has been working for us for years and we no longer need to think about it. Think about how you use your information and set your system up according to your needs. 
• Store information online when possible. Most banks have online banking, with easy access to not only bill paying options but online statement storage, which means you don’t have to keep paper bank statements on hand. You can view statements online, or if you prefer, save them as pdf files and file them electronically.
• Stop printing copies. Save files on your computer or online, and reduce the amount of paper you file. Very few emails need to be printed – if you need to save them, organize them into folders and keep them tucked into online storage. Bonus is that by storing them digitally, you can use the search features to find what you need much faster than sorting through file folders.
• When you sit down to do your filing and organize your papers, make sure you have plenty of supplies on hand: your preferred type of file folder, labels or a label maker, stapler, pens, a recycling bin, a shredder or shredding box, etc. Allow plenty of time, and don't feel you have to conquer it all in one sitting. 
• Going forward, don't let the filing pile up. Keep a small To File folder or box with a limit that requires you to file regularly. 

Next up: Bill Paying and Budgeting

This post is part of the Fresh Start Series, 31 days of tips and tricks to simplify in the new year.