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Files can be tricky, but they don’t have to be. Replace your old philosophy with a new, improved way of thinking about files.
Old philosophy: Create a file folder for every type of incoming bill, invoice, receipt, etc. Save everything and file away. Wait until the file cabinet gets over-stuffed and impossible to use, then purge excess. Dread repeating, so procrastinate and let files get totally out of hand again. Repeat.
New philosophy: Deliberately create file folders that are self-maintaining. Make difficult choices up front about what to keep and what to shred and/or recycle. You are on your way to a simple, stress-free, self-maintaining way of handling your home filing cabinet.
{I keep important and difficult-to-replace papers in a safety deposit box.}
Scan What You Can
It’s time. For a while, small desktop scanners could be a little wonky, but the kinks have been worked out and it is time to scan what you can.
I organize the scanned files into digital file folders labelled by categories, kind of like they were sitting in a file cabinet. (Digital file folders can be as simple as a file on your computer, or you use OneNote/ Evernote.) Leaving all scanned files in one endless list blob IS NOT OKAY – just don’t do it, okay?
Selecting a Scanner
Matt and I looked for a LONG time to find a scanner that met all of our criteria. What we were looking for …
- Scans Quickly
- Wifi
- Automatic sync to cloud
- Scans TWO sides
- Creates PDFs
- Automatic cropping, blank page deletion and de-skew
There were a few top contenders, but we eventually decided on this one (choose the Wifi option) because it met all of our criteria. (Sorry, the scanner we like is not the one in this picture below – that may be confusing!)
What I Scan & Store Digitally …
I want to scan everything that I can to save room. It’s my “kind of” paperless system. It’s just easier to maintain the house when piles of paper aren’t cluttering things up!
- Receipts: Just for big purchases or things I want to tax-deduct. I am not going to scan every grocery receipt.
- Papers that go with big purchases.
Example: I may need to look up a model number. For instance, we needed a replacement part for our backyard playground. Even though I could tell the person on the phone what model (I thought) on their website exactly matched our play-set, they needed the exact model number from the manual. Evidently some of their play-sets are built in the US and some in China, and the parts are different even though they look the same!! The manual is available on their website, but it was handy to have the model number when I needed it. - Insurance statements: I don’t keep every statement, I just make sure I have one from the current plan.
- Home repairs: I keep receipts and records of any sizable repair or improvement we make to the home. {I have a home binder that holds info like paint colors and house plans.}
- Monthly Statements (utility, phone, credit card): I want to make sure I have at least one so that I have a record of company contact info and account info. I don’t scan or keep every single statement for most types of accounts, unless it is for business/tax deduction purposes.
Paper File Folder Organizing –
Yes, let’s organize the home office files.
In the age of of everything digital, sometimes you still need a hard copy. These things are debatable, because there is an argument that most things could just be scanned. These are the things I’m still filing.
- File per child of permanent-record school documents: These folders do not contain memorabilia (nostalgic stuff goes in our memory boxes), just the type of stuff you’d consider important for your own personal permanent records.
- Resume & Career: I keep copies of our resumes, letters of recommendations, certifications we’ve earned, offers of employment, etc.
- Auto files: I keep a file per vehicle with pertinent info, tire warranties, record of maintenance, and major repairs.
- Real Estate (file folder per property, past and present): Important closing or rental information.
- Loan Documents (one file per loan): Records of loans and loan payoffs.
- Old Directories: This is the best place I’ve come up with to keep old directories for a while after I move or my kids change schools (I’ve moved a lot in my life). If a directory becomes obsolete, then I recycle it.
- Ecclesiastical Documents: certificates of blessings, baptisms, and other religious documents.
- Files for whatever makes your life unique: Just remember to think about how to avoid accumulating unnecessary papers!
Quick Tip: The best way to arrange your tabs is actually straight back in one line instead of staggered. You’ll find it is actually easier to quickly skim one straight line of sight instead of dragging your eyes across staggered tag labels.
Digital AND Paper
Medical Documents
I both scan AND keep some actual papers for medical stuff.
SCAN: Medical Files (bills and EOBs, organized by year):
If you are running out of disk space, you can delete files from years that are obsolete. I think I have 1000 pages just from my big family’s recent run-in with strep!
Sometimes it can take a while for medical things to settle, so it is good to keep Estimates of Benefits that affect any unsettled years. The longest it has taken to reconcile a medical payment was when my twins were born. They were almost 1 before the doctor’s office and insurance finally agreed!
PAPER FILE: Medical Keepers:
I file specific medical records that need to be kept indefinitely, information like eyeglass prescriptions and diagnosis, important test results. Under medical, I include dental, vision, chiropractic – anything to do with our health. This isn’t a very big stack of papers, but I can’t go all digital with this (YET – I’m slowly converting more and more to just scanning).
Tax Documents
I have 8 tax file folders that rotate. In January of each year, I shred the contents of the file folder containing tax records from 7 years ago and change the tab to the current year date.**
In the last few years, tax documents aren’t just physical. I now have digital folders for each tax year too, for the digital side of things.
(1 File Folder) Current Year:
Throughout the year, I add tax-pertinent documents to the current year’s folder. For instance, all my records of charitable donations go straight in there. When it is time to prepare taxes, I have absolutely no compiling to do, it is already in one place!
(7 File Folders Total) Last year through 8 years ago:
This is an easy thing. These files usually just sit there for years. The only change is at the New Year, shred 8 years ago and mark the folder with the New Year.
**You should verify how long to keep tax records with your own legal and tax professional, though I’ve never seen any stipulation of keeping tax records for more than 7 years.
Sounds Fun, right?
Okay, maybe not, but we all have to adult once in a while.
One thing I love about our filing cabinet is the little lock that makes it suddenly baby proof. Why do little kids love opening and closing file drawers so much?
From my home to yours,
Mary
I love this! Finally some very good “rules” to help me get rid of all this paper!!! Thank you!
Perfect timing as I have been organizing my filing cabinet this week. I found this post super helpful. What is the ‘rule’ on how long to keep bank and retirement account statements?
Mary you couldn’t have chosen a better time to post this. I just bought a new filing cabinet today and have been contemplating how to go about this task. You have simplified it for me. This will be one more step on my way to an organized home. Thank you!
I”m working with someone on their home office this week so this was timely! Thanks for the suggestions.
Carrie
This is so helpful…thanks for sharing!!
Thanks for the great tips, paperwork is the thing I struggle with most to keep organized!
Above where you say, “(This year, in 2013, I will shred my 2011 files and change the 2011 label to be 2013.) ” do you mean “change the 2011 label to 2012?”
No, you will want to change the year you are trashing into the current year to keep the files rotating. Since I keep 2 years of this info, I will have already created the 2012 label (and it is in use), and I will need to create the current years tab. Just picture the files rotating … hope that helps clear things up! 🙂
Mary
So you’re saying I shouldn’t have bills dating back to 2006? Keep just one of each? Wow, that’s going to free up a lot of space! Lol.
How is your free space?!
Love this!! I am so excited to start this project! I am ready to go home right now and empty out all of my unorganized files (half are organized) and redo it this way! Awesome!! Thank you 🙂
Yay! Glad you feel inspired!
im so glad I found this. I don’t have very many file folders (yet), as I only have recently started doing taxes, and only yesterday acquired a vehicle. but I have a folder for my important documents already, and have been trying to keep my other related ones in folders (important stuff, medical test results, taxes, car crash). (pretty sure I don’t have enough file folders to need a cabinet, maybe somewhere else to keep them). i just counted out and so far only have 10 (but that is not including my first year of taxes, and one for 2013 taxes).
Elizabeth
That is great to start off right from the very start. Good job!!
You need a “like button”
Working on this to organize my files
Great! Good luck!
Would binders work as well, instead of file folders? Also, what about keeping files for tax purposes? I was told that you are supposed to keep files and receipts for up the past 7 years, especially if you are self employed?
I wouldn’t want to use a binder for this but to each his own. 🙂 As for the tax thing, just see the section about how I handle taxes. Be sure you get definitive advice from your tax advisor.
This is so helpful! I am moving into a property soon that has literally no space for file folders so I’m trying to come up with an Soave saving option to install a minimum amount of folders and pare down on paper. Thank you!
I’m so happy to hear! Thanks for letting me know, I really appreciate that.
This advice comes at a perfect time. We are creating a home office in our garage and all paperwork from the previous home office needs to be moved. These guidelines will help me keep what is needed and get rid of what’s not needed. Thank you:)
I’m so glad this will help! Good luck!
This is a game changer. I need to get some new file folders. Do you need to keep the insurance big manuals when you have a new policy? They take up so much room.
I do end up keeping those. I hate that they take up so much room!
What is the name of the cabinet you use for the filing.
That is my husband’s desk drawer. I don’t have a separate cabinet. 🙂
{See all my Home Office Organization posts HERE.}
When I click on the link for the above, it tells me page not found. Just wanted to let you know. 🙂
Thank you so much! I fixed that now. I renamed my category and didn’t even think about links. Thank you, thank you!
Going to use your advice and while I am at it, I am going to scan some of our documents, put them on a usb and back them up on a disc too…no sense in having all this useless paper around.
Less paper is so much easier. Good luck!
Finally, a detailed manner in which to organize! I grew up with piles, and haven’t been very successful with my filing system as a result. THANK YOU!
Your welcome! I’m so glad this could help!!
Thanks for this. Maybe I’m missing it, but what do you do about your children’s medical records? My son has some issues now and going back to collect data has been time-consuming & frustrating. We switched pediatricians and the new office didn’t input the old office’s info so when we needed to go to specialist, they only had the past 2 years. Plus, I want my own records. Sometimes I don’t realize a cold is relevant until it is and that is not something the doc would have a record of. It’s especially helpful when they ask, “How many times has he had pneumonia? Verified by x-ray?” and then I mix up my children since they’ve both had pneumonia multiple times. They don’t seem to care to look at the medical records themselves. Thank you!
I have a file, I call “medical keepers” where I put the papers with diagnosis or other important info. Of course, you can always adapt the plan for what makes sense for you and rotate through more than 2 years of medical info. Use the principles but feel free to adapt!
Thanks! Unfortunately, I am looking for something more specific! Like, what does that look like? I don’t understand what “rotate more than 2 years” means. Docs seem to think it’s relevant if my child had pneumonia 5 years ago, you know what I mean? I’m thinking of doing a thin binder for each child so can easily grab & bring w/me, and update, maybe sections with heath summary, doctor’s visits, lab work, hospitalizations, medications, immunizations, but IDK, seems like it could get confusing or be too much maintenance work??!
That sounds like a lot of work! Did you read in this post how I rotate my tax files? I do the same thing with 2 years of medical files. My suggestion would be extending the medical files section to rotating more years. I hope this helps! 🙂
I like your system! I feel it’s taken me 20 years to figure this stuff out. I appreciate how you point out the differences in medical paperwork – “medical keepers” such as diagnosis, test results, surgical reports, basically medical history data. And “medical files” EOB’s, provider bills, receipts, etc. Our oldest son is 13 and has chronic health conditions with over 20 surgeries to date. There is not a lot of specific information on what to keep and toss. I have created a medical history summary that I’ve added to through the years saved as a document on the computer. It is very helpful to bring to appointments, hospital admissions, etc. I also have all of the “medical keepers” organized in a binder. What I was drowning in was the “medical files” – paid bills & EOB’s. Have just recently purged/shredded about 8 years of paper. So many boxes!!! What let me feel ok about finally letting it go, was talking to our insurance company on the phone and asking them how far back they could look up payments in their system. They can look up EVERY payment they’ve made on our policy. I don’t need to keep 13 year old paid bill records. (I have kept the past 5 years). I probably only need 3, but baby steps 😉 Per our insurance company, providers have until Dec. 31st of the following year from the service provided date to bill insurance and then there is a 6 month appeal period. ie. service today 1/22/16 could be billed to insurance as late as 12/31/17 and then appealed until 6/30/18. So that makes a case for keeping the paper trail for at least 3 years. Not sure how all other insurance works for others. There is really NOT a lot of information on the web on “how” to organize medical paperwork. Thank you very much for this article!
Yay!! So glad you got the key to my system!!! There really are differences between medical papers – not all should be grouped the same! Glad to help 🙂
Where can I find the article on digging out of the mess in order to start using your system?
Honestly, the best way to dig out is to go through the Declutter Challenge! Another one is coming up on May 2nd! https://creatingmaryshome.com/2016/04/declutter-round-2-starts-may-2nd-get-ready/
I need to do this badly! We also have a stack of important documents that we’ve been meaning to put in a safety deposit box (like our marriage certificate and property deeds). I like that you’re scanning lots of things. I have been doing that for documents I need to share with others, but I never thought to use it for storage. I use an app called Scannable. It works really well, and just uses your phone camera. I save them all in DropBox folders. 🙂
Love your low-tech approach. I love Dropbox too. 🙂
The only thing about the scanning is that you could re-print the page later, as it would be hard to print the phone pic.
Actually, the Scannable app automatically crops and converts the image to a PDF — perfect for printing. 🙂
That is awesome!
Do you use any software to keeps docs or do you just put pdfs in a regular folder on a drive? Any suggestions for naming conventions??
We just put it in a regular folder on a drive. I always name dated things with the year, month, date, and then details … for example “20170404 Target Receipt”. Good luck!
Mary, thank you for the thorough explanation of filing and tossing/keeping. I may have read this post in the past, but I didn’t start trying to get out from under the piles (in earnest) until 6 months ago and, because I work full time and have a “side hustle,” I’m still working on it. Your post has helped refresh my memory on your methods.
One thing I would argue, though: Lining the tabs in a straight line may save time by not forcing your eyes to scan back and forth, but if you can’t see a tab without physically moving the tab in front of it out of the way, how are you really saving time? I still like the staggered method. (Convince me, Mary!)
I have to give you points for a logical explanation, though. Another organizational expert said to line them up because it looks better. Well, I’ll choose function over form every time!
And to you moms who have children with severe medical needs: My heart goes out to you. I’m praying for health, healing and a lighter burden for you. <3
I see your point, but I’m wondering if they are that close together that you can’t see it, then you might have pretty empty files (and maybe your categories are too redundant and something makes sense to combine) or the files are so pushed together by over-filling the cabinet? If you need to cram them in or prefer very few things per folder, maybe stagger them within a short range. Like, 2-3 tabs across instead of staggering them across all available spots.
There is no perfect way to organize something for everyone. Take the good advice that works for you, but if you need to tweak something, then certainly do! I know you know that, but in case anyone else reads this comment, I don’t want anyone to read any blog thinking they’re not doing something “right” because it isn’t exactly what is recommended. 🙂
That’s a good point. I’m still filling my file folders, so they’re thinnish at the moment. (The paper filing is the last and most dreaded task of getting my office space whipped into shape.) I don’t like keeping a lot of paper, but I do have plenty of stuff for those physical files. Maybe the tab thing will work itself out when they get a little fuller.
Thanks for taking the time to reply. 🙂
Wow. It seems I have a LOT of work ahead of me in getting our paper records in order. We don’t have a tax folder for each year — we have an entire file BOX that contains ALL important records, bills, etc. for that year, including tax paperwork. And they stretch all the way back to 1997! We haven’t thrown any of them away since then and now a good portion of an entire closet in our home is stacked high with boxes of records that go back 20 years! In addition, we also have three filing cabinets in our home that are stuffed to the brim with paper records and piles of papers that have not been filed (or otherwise dealt with) that are sitting “loose” on various surfaces. I will also admit, I am “old school”, and I don’t like the idea of storing scanned records of a personal nature in a “cloud”. What happens if that data is ever hacked or compromised? Worse, what if I lose access to those records when I need them most (due to power outages, natural disasters, or similar events)? I don’t even like the idea of storing my personal records in bank safety deposit boxes. I prefer that all of my personal records be stored in my own home. That being the case, I suppose I could scan less important records and store them on electronic media (thumb drives or CDs) and keep them in one of several flood/fireproof safes we have here at home. But what a monumental task that would be for me, even if I shred all but the past seven years of records? It would take me a year just to get the last seven years plus our current paperwork scanned and in order. We also have a sideline home business, but thankfully we only have two years of records accumulated so far related to the business. I could easily get overwhelmed just thinking about the magnitude of this task. But I know it must be done. I do appreciate your helpful suggestions, however, I will have to come up with a system that works best for me. I do like the idea of scanning some records — those that are not legal, medical, major purchases or otherwise critical in nature. I definitely have my work cut out for me in this department. It’s very hard for me to let go of “hard copies” of most paper records. I’m almost 60 and have dealt with paper records all my life, both at home and in my twenty-year career in the corporate world. I recently retired early from my career in part because the company I worked for was about to go paperless with what they called “big data”. As the person on my team who was responsible for all critical team records, that was a deal breaker for me. I guess I just don’t trust all the new technology any further than I can throw it. There must be a happy medium solution out there. I hope I can find a balance between paper and scanned records and a method that works for me.
You have a big job ahead of you, no matter how you do it! You’ll find the right medium for you. You have a good understanding of the options, so it is a matter of picking something you can realistically seeing yourself doing all the way through.
I use a filing cabinet and i also scan less important docs into my laptop, and then put some of that information into drop box such as lists of medications for each family member….that way if there is a medical emergency and I can’t remember all the medications I can go to drop box from my phone and pull the information.
I use dropbox a lot because I can get it from everywhere so easily. Sounds like you’ve found a way that works, so I say stick with it. 🙂
We recently moved my 87 y/o MIL in with us and had to clean out her house of YEARS of stuff – she never threw anything away. One closet was full of nothing but old tax records! So cleaning out her house inspired me to get moving on declutting mine so my children don’t have to go through the same thing. Started with the BOXES of old bills, taxes, school records (my kids are married with teenagers!), articles I’ve ripped from decorating magazines (now there’s PINTEREST), etc. Shredded SO MUCH STUFF and recycled the rest. Then started a new filing system. Taxes in one portable file box. The rest in another one. Felt soooooooo good! Cleaned off the books shelves and took 5 boxes of books to work, then donated what wasn’t claimed by co-workers. Need dishes?? I have 5 sets!! Plan to list some on my community sale page and donate if they don’t sell within 30 days or so. Now I’ve signed up for the challenge. So excited to get rid of things and make life more simple. At 62 I don’t need all of the STUFF I’ve saved just in case I may want to use it or my kids want it. My kids don’t want it either!
I think that is great that you are making these changes and thinking of your kids. We just experienced great loss in our family, and so I know that the more things are organized, the better it is for those left behind. Really, though, it isn’t just for your kids, your quality of life will greatly improve without all the extra clutter!
@ Michelle. I know what you mean about the medical records dilemma. After working in the medical field I learned the importance of medical records. I have made my own medical chart at home. It has all lab reports, xray doctors notes etc. I have filed everything medical in my chart/notebook. I also get copies of discs from cat scans, mri’s, mammograms etc. All my discs are put in a sleeve that goes in my notebook. I also keep a copy of my insurance card in my chart/notebook. When I go to the doctor my notebook goes with me. If they need a prior report I have it and they can take a copy of it. All family member has a chart/notebook. They do take up space but gives me piece of mind and gets rid of the hassle of the medical facility asking me if I happen to have a prior report. I also have a chart for dental records.
When the file is old and there is no use of it to organize this kind of file is a big task. But after reading your blog I find the ways to organize the file properly. thanks for sharing with us.
You’re welcome. 🙂