Let’s start by consolidating the stacks of old papers. Find a surface where you can sort your papers and that can be a mess until the process is complete. Depending on the amount of time you have to devote to this project it could take several days. Don’t place anything on the table that you know you don’t need. Magazines you haven’t read in two months probably aren’t going to be read. Clip articles you want to save and file it in the appropriate place. Sort everything you think you are going to keep into four piles that will ultimately become your filing categories; keepsakes, personal, business and archives. You don’t necessarily need filing cabinets or separate drawers. If space is at a premium use different color hanging files and tabs to distinguish one group from another.

The hardest part of this process is often the difficulty in letting go of old cards and other personal reminders of the past. You don’t have to but it doesn’t belong with important papers. Get a plastic storage box and put anything of sentimental value in a protected environment. Here are some general guidelines for getting started.

Create as many individual sections or files as you need. Generally these will include:

Autos: one file for each car or other vehicle. Keep copies of the title, registration, warranties, services receipts and other pertinent information. Insurance information can be kept but the policy should not. If you don’t still own the car, you don’t need the papers.

Bank Accounts: Statements/deposit slips. Once you have reconciled your account toss the deposit slips unless they are a record of income. Then keep them for seven years. Keep checks in a box with the dates and check numbers clearly marked.

Charity: Keep donation records here for year-end taxes

Expenses: Current bills to be paid and receipts.

Financial: Credit card information, loan papers

Insurance: a separate file for each policy in force. Pictures, tapes and receipts should be kept in a safe place in case of fire or theft.

Investments: Current statements only. Dispose of the individual monthly statements when your have the year-end statement. Record the dates of any purchases and sales of investments for tax purposes. Those should be kept in your archives.

Medical: Individual files for claim forms, settled claims, doctor’s statements and bills. Maintain a medical information file foe each family member with pertinent information including medical history, blood type, medications taken and doctors names and phone numbers.

Real Estate/Residence: Mortgage statements, receipts for improvements, any property related papers. Keep a separate file for each property owned including vacation or rental properties.

Warranties/Manuals: Keep for as long as you own the item.

Wills/Trust/Estate Papers: Keep copies here and originals in a safe deposit or other fire proof box.

These are only meant to be guidelines for you. A filing system is only good if it is one you are comfortable with. If it makes sense for you to file alphabetically then do so. A system doesn’t have to be complicated to be effective. If you don’t use it there’s no point in establishing one.

The Personal Papers: should contain the most current year’s papers.

The Business Papers: only put papers that directly pertain to your business here. That would include contracts, vendor bills, correspondence, etc. Divide this are into a current and archives section.

Archives: Keep any non-current year information here including olds cancelled checks, statements, employment information, investments (stocks/retirement/social security), old tax returns, Wills & Trusts. In addition any information on family members can be kept here. As a rule anything that doesn’t belong in your personal or business files can be placed here. Financial papers that have tax consequence should be kept for seven years. That includes cancelled checks, bank statements, charge slips when used as deductions, etc.

Maintain as much information as you can electronically. If you have access to a scanner and have a need to keep tax returns for longer than seven years, scan them. The same can be said for articles or other information you want to be able to retrieve. There are many good text search programs that make managing your electronic information much easier than searching through paper files. dt Search is particularly user friendly.