Filing

When was the last time you couldn't find an important paper you knew you had carefully put away someplace?  How much time do you spend trying to straighten out your household business affairs, especially at income tax time?

You may have the need for a paper filing system.  A system for personal records is a necessity.  All documents, statements, and receipts should be kept organized. You need a special place to keep your papers and a system that would allow you to find any of them in less than a minute if necessary.

Putting together a home filing system is easy, if you follow my instructions below.  The best part is that you will be able to use this system for years to come.

1. You will first need to visit an office supply store, such as Staples or Office Depot, and purchase the supplies required by your project.  You will need a Hanging File Plastic Storage Box, Hanging File Folders, File Folders, Filing Envelopes, and Labels.  It is recommended that you use a labeling system such as SMEAD Arrange or Viewables.

2. You will need to create two (2) separate files which you can place in the same box.  The first file will be for your tax records and will contain items that change periodically, such as receipts and statements.  The second file will be your permanent file and will contain items you keep for your permanent records, such as documents, contracts, and warranties.

3. Each file will contain major categories based on your individual records (e.g. Auto, Bank Accounts, and Salary).  Use hanging folders for each major category.  If the major category can be subdivided (e.g. multiple bank accounts), place file folders or filing envelopes in the hanging folder according to the number of subcategories.  Filing envelopes work better for smaller items, such as receipts.

4. Using a labeling system, label each individual hanging folder and file folder, and place them in alphabetical order.  The SMEAD labeling system enables you to color code labels for both the hanging folders and file folders.  DO NOT handwrite your labels.

5. Categories. In case you are not sure what categories to use, I recommend that you buy the Home Filing system put together by a lawyer J. Michael Martin and his wife Mary Martin, CFP.  I have used their system for years, and I love it.  You can reach them at 1-800-695-3453.

For more information on home filing systems, call Professor Ulivi at 714-771-6000 or email him at professor@ulivi.com