How to Manage Paperwork
Here is how I keep my paperwork in check, so I can spend that much more time with Boss Baby.
STEP 1 - Sort at the Door
I strategically put a paper recycling bin near the front door, so that right as I walk in with the mail and other papers, I can recycle the items I don’t need. This includes all junk mail, envelopes, and other papers. Anything that I don’t need is immediately recycled.
STEP 2 - Sorting Tray
Once I have determined what papers I actually need, they go directly into a paper tray for sorting at a later date.
STEP 3 - Active Desktop Files
When I have time (or when the the sorting tray fills up), I organize all the papers into a desk top hanging file folder. These are my active files These are folders that contain information I want to easily access regularly. For example, every January I make an active file for my taxes.
Also note, that if I already have an active file for something, then papers might go directly into this active file. For example, once I have a tax folder created, when I get tax papers, I bypass the sorting tray and put them directly into that active folder.
STEP 4 - Inactive File Box
When the active file is too full and/or I have time, I move my active files to a file box. I call these my inactive files. These are papers I need to keep, but I will not be referencing them regularly enough to keep them in my desk top file. For example, after my 2021 taxes are done I will move them from my active file to my inactive file.
STEP 5 - Sort & Recycle (Again)
About once a year, or when it gets full, I go through my inactive files and recycle the papers I don’t need anymore. For example, at the advice of my accountant, I keep only 7 years worth of taxes, so every year I throw out the 8th year of taxes papers.
ACTIVE v. INACTIVE DOCUMENTS
For me the definition of active document is about how often I am using the document. For example, when I travelled a lot, I kept my passport in my active desktop file, but after life changed (new baby, Covid, etc) I realized I wasn’t using my passport that much. Since it is so thick, I noticed it a lot and moved it to my inactive file box.
Another example are my tax documents. For the most part, once my taxes are done I move the folder from the active desktop file, to the inactive file box. However, when I applied for a mortgage on my home, I moved my tax documents to from the inactive file box to the active desk top file. I referenced them almost weekly during that time.
Additionally, I do not keep any papers I can find online. For example, the owners manual to my vacuum is online, so I don’t keep it. If I am worried for some reason the manufacturer will take the manual down, I simply download the file.
IMPORTANT NOTE ON FILE BOX SIZE
The size of the boxes is very intentional. I suggest you get boxes these sizes, or smaller! If you get boxes that are bigger, then you will probably keep more papers. In this day and age when so much is able to be scanned or looked up online, then you do not need to keep much more than these boxes can easily handle. If you have more paper than this, you are probably keeping too many paper.
This system is flexible and can be done on your time. Click here for a mini course that will help you get started designing your own system.
