Paperwork is inescapable but it can be manageable. The key is to always stay on top of it by getting rid of what you don’t need and setting up a functional home filing system you can easily maintain.

First things first…go digital! I am all for digitizing anything and everything I possibly can. Stop getting anything via snail mail and switch to a paperless option. You’d be amazed at how much better you’ll feel when you collect mail and don’t see any bills! This will cut down quite a bit of paper that enters your home.

Next, gather all the paperwork in your home and choose a big area to work in uninterrupted. Now you’re going to sort all of them into 5 main categories: action, reference, household, recycle and shred. As you go through each paper ask yourself, what purpose does this serve? Is it something you’ll need to act on right away? Something you’ll need to refer to in the future? Can it be recycled or does it need to be shredded?

Action

These are the papers that require you to act on in the immediate future and can then be discarded. They can include bills, invitations, permission slips, homework, etc. These types of paper should be placed in an area that’s readily accessible such as a decorative bin or an inbox tray on your office desktop. You may want to further divide these papers into subcategories such as pay, call, add to calendar and to read.

Reference

If it’s not something that needs immediate action but rather something you will refer to later, this is where it should go. Keep in mind, many of these types of papers can also be kept electronically rather than the paper form. If you don’t have a scanner, there are many apps that work just as well, sometimes better!

Recycle

Papers that don’t fall into either category above but contain no personal information can be recycled. They can include junk mail, newspapers, magazines, old homework, etc.

Shred

Any paper that doesn’t fall into a keep category but contains personal information should be shredded for your identity protection. Examples are credit card offers and bank statements.

Now that you’ve divided your papers into main categories, it’s time to get rid of what you don’t need. Recycle those unnecessary papers and shred anything personal leaving only what’s needed to be filed. No shredder? Get yourself an identity protection stamp to block out any vital information then recycle it.

The most common option for households is to use a filing cabinet or desk drawer for your files. However, there are other options to choose from if these don’t work for you. Whether it be magazine holders or a file box, find something that will work best for your needs. For your individual files, you’ll need hanging files with tabs and manilla folders. Colored hanging files are visually appealing while straight line filing, where the folder tabs are all in the same position, (right, center or left) works best for visual scanning and for when adding or removing a folder.

So let’s start with some common home filing categories and subcategories you can use. You’ll notice I’ve listed the main categories alphabetically. Another option would be to file them in the order most frequently used to least.

• Automobile

  • Insurance
  • Service/Repairs
  • Title (though I recommend a lock box for this)
  • Loan

• Finances

  • Credit cards
  • Bank records
  • Investments
  • Taxes
  • Receipts
  • Loans

• Medical

  • Individualized for each family member
  • Medical (records, statements, etc)
  • Dental (records, statements, etc)
  • HSA

• Household

  • Real estate
  • Mortgage
  • Taxes
  • Home improvements
  • Home repairs
  • Insurance
  • Warranties/User Manuals (see below)

• Reference

  • Lifestyle
  • Travel
  • Decorating
  • Pets
  • Hobbies/Clubs

• Vital Records (see below)

  • Birth certificates
  • Passports
  • Marriage licence
  • Social security cards
  • Death certificates
  • Divorce records
  • Military records
  • Legal (i.e. power of attorney/wills)
  • Employment
  • Education
  • House Deed

Keep in mind, warranties and user manuals can add up creating a bulky file that takes up a lot of space. Better to keep these papers in digital form by downloading them from the product website or scanning what you have. A vital records folder is good to have on hand, but I recommend keeping only copies here. Originals should be kept in a lock box, home safe or a bank safe deposit box.

Once all your papers have been filed, it’s critical to create a system you’ll be able to maintain for all the hard work you’ve done. Set up a time each day, week or month to go through any papers you’ve accumulated. I personally like to quickly go through my mail each day and make an immediate decision as to where it goes. I keep a small bin for any paper to be recycled and put what’s left in a pile. I then follow the plan above for action papers by quickly sorting through it and pulling anything that needs immediate attention. The rest gets put in a decorative paper tray to be sorted when I have more time.

Now it’s up to you. Life is so much sweeter when you have less clutter dragging you down. Lastly, for an easy to read printable guide to reference as you’re going through your paper decluttering process, sign up to join my email list and I’ll send you my Complete Home Filing System Cheat Sheet.