Home filing system
Searching for important papers at the most urgent moment can be a daunting problem and the resultant frustration cannot be described. But keeping a home filing system need not be intimidating as it saves a lot of time and enormous effort. The papers can be kept in order and you can get them at anytime, without any difficulty. Home filing system need not be an expensive affair as you can start with a file cabinet. Only a few papers like a will and documents of property, insurance and investments, certificates etc need to be arranged in a safe cabinet which is fire and flood proof and has secure locking. A lot of tension and confusion can be prevented if papers and documents are kept in an orderly manner, so that they are available easily to anyone at times of emergency.
How to get organized
First of all you can start with a cardboard file cabinet. It is simple but is sufficient to organize the routine papers like bills and receipts etc. A good number of file folders and pens are enough to start with creating a basic home filing system. Depending upon the volume of paperwork that is required in your home, it will be easy to allocate a particular time once a week to organize the papers into the filing system. All the papers that are lying around in the kitchen counter, sitting room table, a closet in the study and in and around the bed should be collected.
These papers need to be sorted out like various bills, correspondence, tax forms, insurance policies, loans, wills and the like. Put all the past bills in a folder and name it as bills folder. A second folder for bills should be for current bills. Likewise, you can have two separate folders for receipts, correspondence etc. It will be easy to find the latest bills that are unpaid and the unanswered correspondence if arranged in this way. The paid bills should be marked with the date and mode of payment and the payment details.
The letters also must have the copy of the sent reply letter neatly filed behind them. These files need to be accessed frequently and hence should be in the front row in the filing cabinet so that it is easy to find them. All the other file folders should also be arranged in the order of their importance in the filing cabinet. Tax papers can be kept in such a way to get it when it is required and the correspondence should be kept for 6 months together and then a new file can be started. Insurance papers should be segregated into home, vehicle and life and medical insurance policies. They all can be grouped into a single file folder and named insurance with separate sections for each category. These policies can be kept in the storage area as there is no need to access these, except there is a need for a claim. Policies are to be kept safely until their maturity time.
There are other papers like will, birth certificates, marriage license, divorce decrees, and documents pertaining to bank accounts and property must be made into enough number of copies and notarized. They must be kept in the filing system that is kept in a fire proof box in the home and also in a safety vault. You will need the copies anytime and the copies should be kept in different places so that they can be reached immediately at times of need.
It must be ensured that papers indicating the location of keys and location of safe and combination of numbers if any, papers pertaining to military discharge, death certificate of the deceased, burial instructions, the funeral home preference and the burial plot deed and preference of donation to charitable purposes, information for an obituary such as resume etc. It can save a lot of confusion and headache by safekeeping these documents in more than one place.
The tax papers must be kept in tact at least for 7 to 10 years. So it is better to put each year's tax paperwork in a folder and label it accordingly. They must be kept in their chronological order so that it will be easy to access them at a later date. The current year's paperwork must be put in a folder that bears the label prominently with the year mentioned on the title and should be kept in the front of the filing cabinet. This is because you may be adding papers like receipts for current payments and other tax deductible certificates and vouchers that should go into this folder.
The remaining papers like warranties, school records and medical records should be filed in separate files and arranged date wise. They must be discarded after they are no longer required like the warranty papers. School and other papers need to be kept safe for life time and need to be put in a special folder with safety.
Life Folio
Life Folio is a file management system that is easy to manage and maintain. It has a check list that helps in managing the personal data inventory and other important paperwork. This is system where the files and tables can be created using the supplies available in the local stores. Depending upon the need, you can create as many sections as needed and separate them into folders. Each section will handle a subject and it will be arranged category-wise.
Emergency items and contacts section must contain all the papers relating to illness or death, of emergency contact person, addresses and phone numbers, insurance agent, doctors, family members, investment adviser, lawyer and CPA etc. The section for Mutual Funds must contain all the statements in connection with the mutual fund investments. The Section for Investments and Asset Management must have all the traditional and other brokerage accounts, savings accounts and asset management records and any other papers related to investments. The section for Banks, Mortgages and Loans must have all relevant statements, mortgage paperwork and documents of equity loans, auto loans and other loan related paperwork. Separate sections for Health Insurance and Retirement and Pension Plans would be appropriate with their contents of relevant documents. More sections will be needed if there are other documents to be filed such as Corporate Benefits, Annuities, Trusts and Financial Plans etc. Home filing system if maintained meticulously, can be a boon as it helps easy access to papers at times of immediate need and during emergencies.
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