| How to organize your financial paperwork |
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Not many people enjoy sorting bills and filing paperwork
in a windowless home office or in the basement, she says. Pick a
spot where you might be willing to spend some time filing. Your
home-information center should be near your computer, especially
if you pay bills electronically or balance your checkbook using
a financial program.
Morgenstern has seen some clients successfully adopt
a filing system by using a spare cabinet in a kitchen or pantry.
"Clear out the old wedding gifts and the fondue pot that you
never use and use it for your files instead," she says.
Consider
going electronic
Have you thought about trading a paper storage system for one you
can access on your computer's hard drive or on a CD? Generally it's
easier to search for a document on a hard disk drive than by combing
through file folders by hand, and it takes up less space.
Dana H. Korey, "chairman of order" at Away
with Clutter, a professional organizing company based in Del Mar,
Calif., is such a fan of computer storage that she not only recommends
getting your bills and statements electronically, but using a computer
scanner to scan in documents that only come in paper form.
Also, remember that much of what you get in paper
form -- mail-order catalogs, owner's manuals, credit card statements
-- can be found online. So, while you'll want to keep your passport
or your birth certificate, you may want to toss all those mail-order
catalogs.
Long-term
or short-term storage?
Professional organizers classify storage into two categories: immediate-access
and deep storage. Obviously, items you need constant access to belong
in the former, while other information can be stored away and out
of sight. For example, you need immediate access to monthly bills,
but you don't need to get your birth certificate every day.
For immediate access storage, most experts recommend
folders in a filing cabinet or, if space limitations apply, a spare
drawer. However, some people can get along with a binder system
or an accordion file.
Morgenstern usually doesn't recommend binders to her
clients. "It's too labor-intensive for most people since you
have to punch holes as well as file," she says. Choose a system
that you'll most likely use.
For long-term storage for important legal and business
papers, such as wills, insurance policies, stock certificates and
the like, consider paying for a safe-deposit box or buy a fire-proof
box where these important records can be safely stored. If you choose
the fire-proof box option, also consider keeping the papers in waterproof
bags to protect against flooding.
Simple
solutions work best
"The key to being organized is to set routines for yourself,"
says Jones.
That means no matter what type of filing system you
settle on, develop routines for when and how you will file items.
Try to spend a few minutes each day filing, and schedule a time
to pay bills and review financial statements. Jones, for instance,
pays bills two times a month and sets aside Saturday mornings for
filing and other paperwork chores.
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