Managing Paperwork Filing

Paperwork isn’t the most riveting topic, but it can take over our space if we let it. It is much easier to have a process for addressing it before your countertop piles get to you! One of the best ways to do manage incoming paperwork is to immediately separate what comes in to your home or office into areas for “Action”, “File”, or straight into the recycling bin or shred pile!

What paperwork do I keep, and for how long?

For filing paperwork, the first question to ask is “do I really need to keep this?”. This is not something I can answer for you. It is best to ask professionals (lawyer, CPA, etc.), as needed. Some of the other viewpoints that I like to reference are:

• https://www.thespruce.com/how-long-to-keep-documents-2648494

• https://www.daveramsey.com/blog/organizing-your-important-documents

• https://bettermoneyhabits.bankofamerica.com/en/privacy-security/how-long-to-keep-documents-before-shredding

• https://www.consumerreports.org/taxes/how-long-to-keep-tax-documents/

• https://www.suzeorman.com/resources/record-keeping

Do I need to keep all of this paper?

Once you have decided what you want to keep, the next question should be- can I get this electronically? Electronic documents, whether in cloud storage or storage through a portal (like an insurance or vendor portal) take up far less space than paper folders and are much less time consuming. When you can go (and are comfortable) going electronic for paperwork, go electronic.

How should I name my files?

Whether physical or electronic folders, the next step is deciding on a file naming system that will work for you (and others) to follow. The reason that it should be relatively easy for others to follow is that in the event that you are incapacitated, others should know where and how to find any important documents that they may need to access. You can also tell important loved ones in your life where to find documents (electronically or in paper form).

File names should make sense with how your mind works and where you would think to look for something, and be as simple as possible. Keep like with like and keep folders for different years for bigger files. My personal file categories and sub folders are:

• House related

  • Home improvement receipts and contractor documents (one folder per year)

  • Mortgage paperwork

  • House-related bills and taxes

• Taxes

  • One folder per year with returns and associated documents

• Medical

  • Folder for each person, folder per year

• Cars

  • Folder for each car

• Legal

  • Folder for wills and related documents

• Financial

  • Folder for each bank or financial institution (Go paperless where you can!)

• Insurance

  • Folder for each insurance type

This is an example, but you get the gist. Having a simple folder structure can make filing things easier for you.

How do I maintain my filing system?

File weekly, if possible. Making decisions and clearing your files regularly will make maintenance easier and quicker to accomplish. Also, refer to the links above and your professionals about retention of documents and review your folders annually for what you need to keep.

Happy filing!