The Paper Purge

Overwhelmed by your own filing system?

In the last post, I gave an overview of how I process paper.  In addition to a regular review, I've found the key to staying on top of the paper in my life is a manageable and accessible filing system.  My old filing system was anything but manageable!  There were hanging folders stuffed with files - some with labels, some without.  Many times, it seemed easier to create a new folder than to figure out where the piece of paper I had in hand should be filed.  I ended up with too many files for my space, and even though I had attempted to be organized, it was still hard to find things.  When I started reading more about organization, I realized I would never look at a majority of the paper I was saving  OR I could access it online, so I didn’t even need the physical piece of paper.  

It was necessary to do a major paper purge to unclog my drawers.  At the end of the purge, I had two large boxes full of paper to shred and a realistic amount of paper left that would fit into my new system.   In this post, I’ll go through the specifics of the purge, and next time I'll talk about my new (and improved) filing system.  Note that I’m not providing tax or financial advice, so please consult your tax or financial professional to determine what’s best for you!
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Tax Documents

• I kept 7 years of tax returns including all supporting documentation.
• I kept all of my tax returns since I began filing, but shredded all supporting documentation for anything prior to 7 years ago.

Bank and Investment Statements

• If I wasn’t already receiving them electronically, I signed up.  I did keep my kids on paper statements because I thought it was easier for them to understand.
• I shredded all old bank statements and saved one month of my kids’ statements.
• I created an Investment Log that I update quarterly.  I kept the most recent quarterly statement for each investment and shredded the rest.  I kept any confirmations of retirement rollover transactions.

Other Financial Documents

• I kept account opening documents for bank accounts.
• I kept disclosures and loan documents for current loans/credit cards, but shredded old ones that I confirmed were reported as paid in full.
• I kept all mortgage documents (original mortgage, refinanced mortgage, home equity line of credit.)
• I kept Social Security Statements, but have since signed up for an electronic account (so easy - do it to protect yourself at ssa.gov!)
• I shredded everything else.

Health Related Documents

• I signed up for electronic explanation of benefits from my insurance company.
• I created a health log, physician info sheet, and medication info sheet for each family member (even the cat) and went through all medical bills, statements, records and insurance explanation of benefits and documented the information on the log.  (This was by far the most labor intensive and time consuming part of this whole process!  But it was also the most satisfying and gave me the most peace of mind to have all of that information accessible.)
• I created an HSA (Health Savings Account) log and FSA (Flexible Spending Account) log and logged any purchases from the tax year I was in at the time and saved corresponding receipts.  I separated old HSA and FSA purchases by year and saved those receipts.  (If you don't use an HSA or FSA, you would want to save any health expense documentation that you could claim on your taxes)  
• I saved any test results, medical instructions, immunization records.
• I saved current health insurance policy info, all old health insurance cards, and all certificates of credible coverage.  I shredded old health insurance policy documents after making sure there were no outstanding claims against old policies.
• After I’d logged everything, I shredded everything else - - this was the scariest part! 

Utility Bills

• If I wasn’t already signed up for electronic billing, I signed up.  
• For the one bill I still have to receive in the mail, I saved a year's worth of bills so I could always look back at this month last year if needed.  
• I shredded all other utility bills.

Educational Papers

• I had a lot of old high school and college papers.  I saved a few things,  but trashed the rest.
• I saved transcripts and copies of any licenses or certifications.
• I displayed my college diploma at work instead of keeping it in a drawer!
• I moved all my kids’ school stuff and other memorabilia to a plastic bin (one per kid per school year.)

Property Related Documents

• I created a vehicle maintenance log for each vehicle, went through all the repair shop invoices and receipts, and logged them.  I kept any receipts or invoices I might need for warranty work and trashed the rest.
• I created a home maintenance log and logged all home repairs.  I kept any receipts or invoices I might need for warranty work or future returns and trashed the rest.
• I kept info about our house like the survey, the MLS sheet from when we bought the house, the appraisal from when we refinanced, etc.
• I kept any estimates of projects we hadn’t done yet.
• I saved current insurance policy documents (auto and homeowners) and shredded old ones after making sure there were no outstanding claims against old policies.
• I saved owner's manuals of everything I still owned and trashed the rest.
• I went through all receipts and trashed any I couldn’t read anymore as well as any those for things I no longer owned or items I’d never return.

Miscellaneous

• If it was a keepsake, I put it in a plastic bin for family keepsakes.
• If it was a photo, I stored it in a plastic bin.
• If I didn’t remember why I kept it, I pitched it!

I felt amazing after “the purge”, which I’ll admit took a few weeks because I worked on it in pieces.  There were lots of piles of paper on the floor and many evenings spent sorting in front of the TV.  Shredding all that paper was scary, but it's been over 2 years since I did this, and I haven't needed ANYTHING that I shredded - phew!  Remember, everyone's purge will be different, and if you have any doubt if you should save something, keep it until you've consulted the appropriate professional. 

​After all that work, I wanted to be sure I didn’t get back into the same scenario a few months down the road, so I gave myself some finite boundaries in which I could store future paper.  I created an archive for long term storage, a binder system for things I need to keep and be able to access more regularly, and a simple set of clear plastic bins for memorabilia.  Next time, I’ll walk you through how I set those up and how I use them on a daily basis.  Have you done a paper purge of your own?  Was it worth the effort?  Share your tips with us in the comments!

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Sources:
Photo by Edu Grande on Unsplash

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Free Printables

If you would like any of these in the Excel format, email me at info@mylifeinorder.com or use the contact form and indicate which forms you'd like in the comments section.

FSA Log
File Size:	427 kb
File Type:	pdf

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Health Log
File Size:	405 kb
File Type:	pdf

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Home Maintenance Log
File Size:	267 kb
File Type:	pdf

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HSA Log
File Size:	429 kb
File Type:	pdf

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Investment Log
File Size:	272 kb
File Type:	pdf

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Medication Info Sheet
File Size:	302 kb
File Type:	pdf

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Physician Info Sheet
File Size:	302 kb
File Type:	pdf

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Vehicle Maintenance Log
File Size:	269 kb
File Type:	pdf

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