Lately with my business growing, kids starting school, and trying to catch up since being sick, my paper work is out of control. The truth is that I hate paper clutter; it drives me nuts. I also believe that organizing your paperwork can help your finances.
During tax season, not having an organized paper work system will affect you financially. Organizing your paperwork is key to help get your finances under control and avoid overspending.
We are guilty of storing our paperwork in drawers, inside entertainment dressers, etc; and they will stay there neglected for a very long time.
What sort of paper work do we tend to save?
- Bank statements
- Credit card bills
- Household bills
- Tax information
If you are like me, I tend to be a purger. I dislike clutter and just simply throw everything away. This goes with my paperwork, and this lands me in trouble at times.
You can also be the opposite of me and be a pack rat and save every single paper you own.
Either way, a purger or pack rat; you will end up the same way, not being able to find that paperwork with the information you need.
So how do we start organizing our paperwork and help our finances? Below I will share helpful tips to help us get started and organized this hidden monsters we call paperwork.
How to Organize Your Paperwork To Help Your Finances
You might need these items below to help you through the sorting.
- Post-it notes
Label the folders according to the categories you are going to need. Remember that everyone is different, and categories will vary from people to people. Below is an example of categories:
- Bank statements
To begin sorting your paperwork, please use the kitchen table in order to have room to organize your paperwork.
Remember that depending on how much paper you have, organizing this paper is going to take time. Please make sure you look at your schedule because this may take between a few hours, to days.
Also remember that it all depends on how much time and effort you put into organizing and if you have helpers to help you as well.
Make sure you create piles:
Read all paperwork carefully
Make sure you take the time to look and read at all your papers before deciding to throw them away or keep them.
Do not just pile your papers
Make sure you don’t pile your paperwork, file it!
Keep latest paperwork
Do not keep the same single paperwork that is from the same company. Meaning, keep the updated credit card bill or insurance information and toss the older version.
Find the best location
The best place to file your paper is in one central location. I believe that out of sight, out mind mentality creates more paper clutter. Avoid storing papers in containers and placing them in a closet or basement or in an empty room of the house.
I have my paperwork in a filing cabinet near my desk. The reason I do this is because I pay my bill in this area, and having the filing cabinet there helps me sort through my paperwork.
Technology has change the way we have managed our personal finances, and thanks to that, we are able to go paperless on certain things. This helps us eliminate the paper clutter and we are able to find them when we need them.
Develop a filing system that works for you
This is important because it will affect your paper clutter in the future. Make sure you create a filing system that works for you. Keep it simple to help you develop a routine.
Do you want to go month to month, or by category? Whatever works for you, as long as it helps you to create a routine.
Organizing your paperwork can help you save money. No more messes and wasting time looking for important papers. Remember to go paperless, keep your paperwork in one central location, and create a routine that will allow you to continue to cycle to your paperwork.
How else do you organize your paperwork, and how does this method help you to save money?
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