· Save money by avoiding late fees or catching billing errors
· Save time when preparing to file taxes
· Clarity and less stress when it’s time to make decisions
· For couples, transparency and ease of access to information
Why now?
February is a great month to get organized. It aligns with the time of year most of us are gathering documents for our personal tax returns. While a monthly frequency is great to stay on top of filing, knowing that once per year you’ll take a closer look at your system and what needs to be modified or discarded can give you peace of mind during those months that you, as a human, may naturally get off track from routine organization. Create a recurring calendar event to revisit this.
How do I do it?
It’s not about which system to use, but about having a system at all. We provide a “Stay Organized” checklist to guide your hybrid paper and electronic filing system. Borrow and adapt it to fit your lifestyle. Remember the mantra, done is better than perfect. Celebrate your progress because getting stuck in perfection will work against your productivity. Request a copy of the checklist here.
· Use the categories on the left side of the “Stay Organized” checklist to set up paper and/or electronic files. You may need sub-folders depending on the quantity of items in each category.
· Keep receipts related to tax credits, deductions, capital gains (home improvements, charitable donations, childcare, education, medical expenses, etc).
· Keep your tax returns for 7 years.
A simple, organized set of files will help you to stick to your system. Get creative with nice pens or printing labels from your computer. Go paperless when possible, and make sure someone knows how to access your electronic files. Use a lockbox or fire-proof safe to store your files.
View your system from an outsider’s perspective. If someone had to step in and take over your finances, would they be able to access every bill, bank account, and insurance policy? Get rid of anything that isn’t essential and up to date.
After your annual organization, carve out 10 minutes a month to stay on top of your system. By filing new items and getting rid of older documents as you go, your annual task will become shorter. A best practice is to shred documents before putting them in the trash.
Reach out to me if you want accountability. I can help you determine what to keep and what to toss. My office is available for your scanning, labeling and shredding needs. Most importantly, when you’re finished, enjoy the feeling of your accomplishment.
