I’m taking you along as I catch up on sorting my papers, go through my filing system, and massively declutter!
Many of us have formed bad habits around how we handle paper. Keeping every receipt. Dropping the mail on the nearest flat surface. Piling the papers that need to be filed in a “to file” pile. Piling the papers we need to act on in another pile.
In today’s video, I’m sharing three secrets to eliminate paper piles. I call it the 311 on paper, but there’s actually three ones, so if you can help me come up with a better name, I’d appreciate it!
Three Secrets to A System
- One touch. The first time you touch a paper is the last time you’ll touch it! Take it straight to it’s home the first time you touch it – the recycling, your action items spot, or your file cabinet.
- One home. There are only two types of papers you should keep: those that need to be filed, and those that you need to act on. Each type should have one, and only one home. This eliminates piles elsewhere!
- One minute. If it takes one minute or less, DO IT NOW. Pay that bill, recycle that junk mail, file the file! It takes so much less time to just do it right away, then trying to remember and catch up on it later.
So how long should you keep important papers?
Marriage certificates, birth certificates, death certificates, social security cards – those need to be kept forever. You could keep them in file folder, but I suggest you put them in a safe or lockbox instead, something that’s fireproof.
Tax documentation should be kept for three years unless you have some extenuating circumstances, but you can totally scan all your receipts, etc. and keep them digitally. Keep your actual official tax return forever.
Statements should be kept only for the month that they’re relevant – and honestly, you should not be getting statements in the mail. Switch to online banking and opt for digital statements.
The same goes for bills – pay them online, and you won’t forget to do it anymore, saving you on late fees! You can also put reminders in your phone so you’re aware of when your payments are coming out. And you can check your online statements to make sure nothing funky is going on with your payments. If you can’t pay a bill online, the longest you should keep a paper bill is one month.
You don’t need to keep your health insurance explanation of benefits, since all that info is on your health insurance carrier’s online portal for you.
Loan paperwork should be kept until the loan is paid off. Mortgage and home sale paperwork should be kept as long as you own the property.
As a general rule – if you can get it online, don’t keep it in paper.
Any papers you need to take action on should go in your action items home. Any papers you need to file should go straight into your files!
If you dread filing papers, it could be that your system is too complicated. Maybe you’re breaking things into too many micro-categories when larger buckets would do.
Once you clean out your files and implement a system to stop piles before they start, you’ll find it takes much less time to manage your papers.
Helpful Links:
- IRS guidelines for how long to keep supporting tax documentation
- IRS accepts digital copies of receipts
- My favorite organizing products from Amazon
Let me know what topic you’d like me to cover next!
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