** SETTING UP A FILING SYSTEM **
Start by collecting all of your papers. Sort papers into 2 piles: Keep and Trash. Next, sort the keepers into categories. When choosing category/files names, think about retrieval. When you are looking for a car repair receipt will you look under Car? Vehicle? Buick? Receipts? Don’t worry, categories will reveal themselves as you go through your papers.
Some categories to consider:
• Bills
• Employment
• Health
• Home
• Insurance
• Investments
• Legal
• Medical
• Military
• Payments
• Receipts
• Retirement
• School
• Statements
• Taxes
• Wills
I also include a file for each family member.
I highly recommend using labeled hanging folders, but you can also use a file box or binder. Some categories may have subcategories. Use manila folders for subcategories.
Label files in pencil at first, and use for a month or so, in case you want to make changes. Then you can permanently label each file. I also recommend arranging the file tabs in one row. This makes it easy to add or delete files.
** YEAR-END FILING PROCESS **
1) Gather Supplies: stapler, post-it notes, paper clips, rubber bands, sharpie or pen, manila folders and a file box or other storage container. Use plastic if storing in a garage, attic or basement, where water/weather damage may occur.
2) Take out each file individually. As you go through the file, decide what you can toss, what you can remove for the year-end file box, and what you can keep in the file.
3) Keep sections together with a staple, paper clip, rubber band, or place in a manila folder.
4) Label each section.
5) After going through every file, you should now have your year-end files ready for storage.
6) Bind all sections together and label by year.
7) Place in File Box. Several years may fit in one file box.
8) Don’t forget to label your File Box with appropriate dates. “Year End Files 2010-2013”, for example.
** CONGRATULATIONS! **
You should now have space in your file cabinet for the new year!
** FILE MANAGEMENT TIPS **
1) Keep a “Working File” for all papers you need to file later. Sure, it’s great to file each paper as you receive it. But, at least for me, this is not realistic. I place papers I need to file in a separate folder on my desk. You could also use a basket or paper tray designated specifically for this purpose. File these in the right place weekly.
2) Keep a “To Do” file. This would be for things like bills to pay, forms to fill out, etc. File once the task is completed.
3) Be smart – shred all personal documents before you toss them!
4) Keep your year-end files WITH that year’s Tax Return.
5) Keep Vital Documents in a fireproof / waterproof box or cabinet, or a safe deposit box.
6) Maintenance is the key – find time daily, weekly or monthly to keep things filed properly. The more often you do this the less time it will take.
7) Work where the action is. Set up your file system in the kitchen, if that is where papers tend to accumulate. This is MUCH easier than retraining yourself to take them to the office upstairs. The fewer steps involved – the better.
8) Go PAPERLESS! Opt for paperless statements, pay your bills online, and use a computer financial program, such as Quick Books. I also recommend using an Online Computer Backup system like Mozy or Carbonite.
** PAPER SAVER TIMELINE **
KEEP FOR 1 MONTH:
ATM receipts
Bank Statements
Monthly Bills: until paid
KEEP AS NEEDED:
Credit Card Statements: until paid
Home Improvement Receipts: until home is sold
Investment Statements: replace quarterly with new statement
Leases: until moved out and received deposit back
Paychecks / Pay Stubs: until you receive W-2 form
Monthly Statements: 1 year if needed for taxes
Sales Receipts: life of warranty or for return purposes
Vehicle Records and Titles: as long as you own it
KEEP 7 YEARS:
Childcare Costs
Deductible Business Expenses
Investment Records
Medical Costs: paid out of pocket
Mortgage Interest
Property Taxes
Tax Documents
W-2 forms
Year-End Statements
KEEP FOREVER:
Academic Records
Adoption Papers
Baptismal Certificates
Birth Certificates
Death Certificates
Driver’s Licenses
Employment Records
Insurance Policies
Home Improvement Records
Marriage Certificates
Medical Records
Military Records
Passports
Receipts for Major Purchases
Retirement / Pension Records
Social Security Cards
Wills
Yearly Tax Returns
For File Management pictures visit http://www.silverliningorganizers.com/organize-end-of-year-files/
