How to Organize Your Files at Home

If you need help keeping your papers organized. Here are some ideas to get you good and started on being more organized.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• trash can
• shredder
• filing cabinet
• filing system
• folders
• hanging files

1. Keep what you need and get rid of the rest. Here are guidelines for retention of your important documents.
   Tax returns and proof of filing: Forever - in case you are audited.
   Documents Supporting Tax Returns (W-2, 1099, receipts to prove deductions, etc.): Six years. The IRS has up to three years from when you file to look for errors on your return and up to six years to audit you if it suspects you underreported income by 25 percent. (There’s no limit if fraud is involved.)
   Receipts: Until the warranty expires, or for as long as you need them for tax purposes.
   Securities Statements (stocks, bonds, mutual funds, etc.): For 6 years after you sell them; to prove a profit or loss for tax purposes
   Medical Bills: 1 yr, unless deducting for taxes, then 6 years.
   Pay Stubs. until you receive your W-2.
   401k and IRA Statements: Until your year end statement arrives. Keep your year end statements for at least 6 years for tax reasons.
   Bank Statements: 1 year to confirm 1099.
   Credit Card Statements: 1 month for most, so you can reconcile your purchases. Be sure to shred when discarding anything with account numbers or your social security number on it.
2. Get rid of the papers you do not need. Then get busy getting rid of any paper you do not need! Toss out information you no longer need, but doesn’t require shredding. Recycle papers when you can. Try not to hang on to magazines and catalogs. These can really pile up.
3. Shred unnecessary documents, which contain any important information, as you go.
4. Buy a filing cabinet if you don’t already have one. Or take this time to clean out your existing filing cabinet.
5. Locate your filing cabinet in an easily accessible place. Use hanging folders and manila folders with labels. Purchase any filing supplies you don’t already have.
6. Looking good! Make stacks of papers and use a simple system for you to use. Keep it simple so you’ll like it.
7. Use color coding with your folders. It’s not highly recommended, keeping your system simple will help you keep it maintained. If you use color coding limit the number of colors you use.
8. To get the bulk of it done sort papers in piles according to categories. Example categories may be bank statements, warranties, insurance, and manuals.
9. Determine how many main categories you have and label a hanging folder tab for each. Hang your hanging folders in alphabetical order.
10. Your sub-categories should be manila file folders inside the appropriate hanging folder. For example, a main category would be Insurance. Subcategories might be labeled Automobile insurance, Homeowners insurance, and Life Insurance.
11. File the papers in the folders and place in the appropriate categories.
12. Once you have your filing system set up, do your filing at least once a week. Don't allow the papers to continuously pile up. If you put everything in it's place once a week you won't have a large pile of papers to go through from time to time.
13. Get some help if you can. Either a family member or hire a helper. If all else fails and you have the funds, or your task at hand is very large consider hiring organizing consultant.
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Tips & Warnings

• Don't delay the sooner you start the sooner you will be done.
• Plan your filing system before you start.
• Keep it simple and easy to maintain.
• Get some help with the larger projects.
• Shred any documents with personal information on them, like your SS# or bank account numbers etc...
• Shred any credit card applications you receive in the mail.