"I can't seem to get control of the paper that piles up all over my house. It accumulates on the counters, the desk, the end tables, the dining room table, the coffee table and every other flat surface of my house. At this point, I don't know where to begin to try to sort through it all to separate the important stuff from the junk. Do you have any suggestions?" Pam from Hope
Paper. We had a client with a room-full-o'-paper. Trash bags, bins, boxes, etc. filled with about 8 years worth of every paper item that came into the house. Overwhelming for this person? To say the least. This person had not been able to file his/her taxes for years as all the related documents were mixed in amongst the other items. Here is how we conquered the piles.Three categories with which to begin:
1. Important- Take action now! (Tax related, bring to safe-deposit box)
2. Keep/file- Papers that client needs and/or wants (pictures, momentos, contracts, warrenties)
3. Shred- Anything that is not needed and/or wanted
Rule: As we go through each pile, bin, box or bag initially, no one item can be given more than one second of consideration. If unsure, put it in the keep pile.
Once sorted as above:
Take category 1, Important, and separate into further categories- taxes by year and safe deposit box.
Next, separate each tax year file further, such as by property, business, personal, etc. and then bring to accountant.
Bring items to safe deposit box.
Then, take Category 2, Keep/file, and create File Folders (computer if scanning/ manila if filing) for items that NEED to be kept. Use the below as a guide.
1. Safe deposit or Fire-proof box: Birth/death certificates, SS cards, Marriage license, CURRENT insurance policy, Appraisals, wills, Deeds, Titles, Trusts.
2. Tax returns- by year for years recommended by IRS (see IRS website- differs according to your situation)
3. Receipts/Warranties- for major purchases and those items still under warranty
4. Real estate/residence records- home improvement, loan agreements, etc.
5. Financial- Annual- Year-end summaries for credit cards, mutual funds, bank statements & other investments by account- for past 6 years.
6. Financial- Monthly- Same as #5 for year by month (past 12 months)
7. Income- Pay stubs, direct deposit stubs for bank accounts, by month for 12 months
8. Accounts- Credit card rec't, withdrawal, deposit slips, ect. for one month- shred after reconciling w/statement.
9. Per Person- Work agreements, medical records, school records, commendations, awards, certificates, etc.
Create a system for things that you WANT to keep:
While sorting ask- Do I have enough of these and will I have time to read/review it? Is the information current? Could I get this again if I found I actually really needed it?
A good analogy here is magazines. How long does it take you to read one magazine? How many magazines do you have? Mutiply the time to read by the number of magazines and then ask yourself- do I have the time to read all these magazines?
Now, categorize what is left and find the best/most appropriate home/use for them.
Pictures- picture boxes, albums, frames, shadow boxes
Recipes- books or boxes
Cards, kids' drawings, etc.- scrap book, album, memory box.
Business cards, envelopes, etc.- address book
Why this system works.
As most of you have probably found out, when you are faced with more paper than you can handle in one day and you try to sort them into 15 different categories right away, the piles get kicked over, mixed up, confused, etc. This method makes for a quick three category system, in which you can sort into bins/boxes to keep it simple. I suggest taping an index card or putting a label on each of the three bins. This is also something you can do while watching tv or talking on the phone. By breaking the process down into shorter steps with larger categories, it becomes less confusing to begin.
Nicole