Around the Home in 80 Days: Destination: Filing 101

Last week I gave you a shopping list of items to pick up if you did not already own them. The list included a filing drawer or bin, hanging files (at least 20), tabs and a paper shredder. In addition, I challenged you to do a quick toss of paper clutter that you absolutely knew you did not need to keep.Â

This week we are going to work on what you need to keep in your file drawer and for how long. Following are the files that I keep. You may need to add or take away from my list to best suit your needs. The following information is not to replace the advice from a financial expert, so please use this just as a guide. Please check out this link: http://www.irs.gov/publications/p552/ar02.html for information on what to keep and for how long. Please consult your tax professional for specific questions and guidelines.

• Taxes- Items needed for this year’s taxes that do not fit into the other file categories
• Paystubs
• Medical bills
• Utility bills
• Credit Card Statements
• Bank Statements
• Quarterly Investment Statements

All of the above files are to be kept for one full calendar year unless they are used for tax purposes such as for use with Home Office business expense. In the event that they will be used for a business expense, at the end of the year combine them all into a large envelope and clearly mark on the envelope 20xx taxes.

In addition include:

• Cancelled insurance policies
• Records of selling real estate or stock
• Home Improvement receipts

At the end of the year I store them with my other tax info for that year.Â

Also include in your filing drawer:

• Paid Loans
• Sales receipts and warranty information- keep until the warranty expires

Now’s the time to get personal with your filing system. Add to it those items which are important to you. The following list is my list to help you think of what you may need:

• School- important papers from my daughter’s school such as student handbook
• Vacation- brochures of places we plan on going
• Home/Garden
• Automotive
• Pet papers and vet bills
• Home Parties- parties for which I hosted (Longaberger, Home Interior, etc.)
• Scrapbook- I put in here anything that I will want to use in my scrapbook but is not a photo (birthday invite, program booklet, etc.)

As a reminder, this is an 80 day challenge. We are now working on days 8-14. Following is a guideline for completing the tasks for this week, but please adjust these suggestions to best suit your needs.Â

Day 8:Â
Figure out what categories you will need

Day 9:Â
Make tabs for each folder and place into your filing cabinet

Day 10:Â
Go through your old filing cabinet or drawer and purge old papers that you don’t need.  Don’t forget to shred documents with personal information. Â

 Days 11-13:
Sort through your paper clutter and file Â

Day 14:Â
Rest and prepare for the next week’s challenge

Next week we will work on the most important papers that will be kept in your separate smaller folio, safety deposit, or fire box.Â

Enjoy the journey!
Betsy

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