How to Store Papers
Do you have all of your important documents at the tips of your fingers? Is it easy and painless to find important documents such as birth certificates, car titles and your life insurance documents? For many, they struggle storing their papers because they don’t have a designated place and structured system. Let me show you how to store your papers and you will never go hunting again for a document.
I do not recommend file folders, filing cabinets or filing drawers. What I find happens when these are used to store papers is that you keep more papers than you actually need because you have the space for it.
I do recommend using binders.. Binders are easy to store, you can label the spines with exactly what is stored in each binder and it’s very easy to quickly flip through them to retrieve exactly what you want. You are going to need at least 2 binders. One for your “Operating” documents and one for your “Permanent” documents. I also recommend that these binders be 2-3 inches in width and preferably you would have 2 different colors (one color for your “Operating” binder and one for your “Permanent” binder.) These pockets and page protectors are also useful as you are setting up your binders.
Operating Folder holds documents pertinent to your life for the past or coming year only (and documents are discarded as they are no longer useful or are saved digitally in a safe location.)
Checkbook
Stamps (unless kept with other stationery)
Coupons* - do not include this category unless you actually use coupons
Invitations - put on calendar first. Consider putting all pertinent info in notes section of the calendar reminder and throwing away invitation
Receipts for major purchases (under $1K or whatever threshold you want to set)
Car Maintenance (periodically make digital copies and safely destroy)
Home Maintenance (periodically make digital copies and safely destroy)
Taxes (keep records for 3 years - keep one folder for current year until taxes filed, then make digital copies, save in a known location and safely destroy originals)
Insurance - consider keeping a digital copy only, unless you like to have a hard copy for reference
Current Year Employer Benefit Info (HSA, Health Insurance, Dental Insurance, etc)
Disability
Home/Rental
Life
Car
Permanent Folder holds documents that are pertinent to more than 2 years of your life. These are items in which you need the original document or like to have a hard copy of.
Personal Documents
Birth certificate
Social Security Cards
Passport Cards
Certifications/Licenses
Marriage Certificate
Professional Licenses/Certifications
Diplomas
Estate Planning Documents (Power of Attorney, Will, Medical Directives)
Major Assets
Home-related documents (lease, deed, etc.)
Receipts of Significant purchases (exceeds $1K threshold)
Car Title and Registration
Work Contracts
Facts of Life Document - basic information for whomever will be handling your affairs in case of a medical emergency or unexpected death
Attorney info
Primary Care Physician info
Bank and list of accounts held (also include HSA and FSA)
Brokerage and list of investment accounts held
Insurance - include copies of all cards and policy numbers if not held in Operating Folder
Medical, Dental
Auto
Home/Renters
Disability
Life
List of previous addresses and when you lived there. This is harder to remember and more often needed than one may think
Setting up your “Operating” and your “Permanent” binders will take care of most, if not all your paper storage needs. Make it your own. Add sections that are pertinent to your life. You may also want to create a seperate binder to corral important documents relating to your professional life, major projects or a hobby.
From setting up my own binders and from the feedback I’ve received from others, expect that this will take about 1-3 hours of work to put this together once you have gathered all of your materials.
