The Binder System

Archive storage is color coded!

​This is the last in the series about getting control of your paper.  Step one is to have a system to capture and regularly process your paper; step two is to purge your files; and step three is to create an easy-to-maintain filing system.   

After my paper purge came the fun part - buying new office supplies!  I purchased five binders, a box of hanging folders, a box of file folders, a few packages of dividers, and a box of page protectors.  I got most of these supplies at Staples after a glorious hour of browsing all of my options!  I decided on 5 categories and color coded them.  Financial is green; Property is yellow; Health is red; Personal is blue; and Fun is purple.  The binders, hanging folders, and file folders all came in these five colors.  I also purchased a few color coordinated zippered pencil pouches with three ring binder holes for smaller papers.
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During the purge, I had identified paper I needed to keep but would only need to access rarely.  I divided those papers into file folders based on the category.  For instance each year’s tax documents went into a separate green file folder labelled with the year.  Several of those file folders fit into a green hanging folder labelled ‘Taxes’ and got hung in a plastic file box with a lid.  Other documents in my archive system are mortgage information, owner's manuals (both in yellow folders for property), full life insurance policies (in red folders for health), family history information and old coursework from college or high school (both in blue for personal.)  I rarely need to get into the archive storage that I keep in the basement, but if I do, it’s very easy to find things because of the color system and the fact that there isn’t too much in each file.

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My real life finance binder!

The heart of the system, though,  is the binders!  I got the idea from the Organize 365 podcast and tweaked it to fit my needs.  I took each binder and inserted the dividers to create sections, and then within each divided section, I used page protectors to neatly store my paper.  I used my label maker to create labels for each divider and also created some labels to put on the outer corner of page protectors that needed some explanation.  

I'll tell you in detail how I organized my binders, but the best part about the system is that it's completely customizable - you could have as many or as few binders and dividers and page protectors per binder as you need or want.  I am not providing financial, tax, or legal advice, so please contact the appropriate professional to determine what is best for you.

Finance Binder - Green

• Divider: Banking 
  • Page protector for each bank account’s documents
  • Page protector for kids ‘ statements
• Divider: Loans
  • Each loan has a page protector with all related documents
  • I have all credit card info in one page protector instead of individual ones for each card.
• Divider: Investments (Investment log is in the pocket of the divider)
  • Page protector for each investment where anything I need to keep about each one is kept.  I sometimes print out an electronic statement if I need it for reference and then keep it in the page protector until the next time I need to print a new one.
• Divider: Planning
  • I think this one may be unnecessary for me since I keep track of my budget electronically.  My original thought was that I’d print out a budget and maybe a spending log, but honestly, I haven’t used this section.  I’m now inspired to just get rid of it to save some space!  
  • If you’re a visual person, this may be a great way to stay on track with spending if you could glance at your goals and progress weekly.
• Divider: Bills
  • I have one bill that I still get in snail mail, so I save a year’s worth of those in the pocket of the divider and shred the oldest one every month.   I do this so I can look back at the same time period last year to compare my usage and cost.
  • If you had multiple bills that you get in paper format, you could have a page protector for each one.  If you have the option to receive electronic statements or bills, I would highly suggest signing up!
• Pencil Pouch: Checks that have been deposited via mobile banking
  • I keep checks for 60 days after I’ve deposited them to make sure they’ve shown up correctly on a statement.   After they’ve been deposited, I write the date of the mobile deposit on the back of the check and slip them into the zippered pouch, newest on top.  Every week, I look at the back of the pile to see if any are over two months old, and if so, I shred them.

 
Health Binder - Red

• Dividers: Each family member (Health logs are in pockets of the dividers)
  • As each family member has a health ‘event’ (a visit to the dr., a blood test, dental work, an eye exam, a prescription change), it gets logged on their individual health log.  If the expense was paid with HSA or FSA dollars, the corresponding receipt gets logged in the HSA/FSA log and saved in that section of the binder.  
    • The health logs have been very helpful to look back to find out how long ago it was since someone last had an ear infection? Or what antibiotic did they take last time the were sick? Or what date was your child’s last well visit? Or how much is my co-pay?
  • Page protectors are used for upcoming appointment information, test results, immunization records, medical instructions, and I even have a CD with x-ray images on them in one page protector.  As health log sheets get filled up, they go in page protectors as well.
    • It’s so handy to just take out a page protector with all info for an upcoming appointment and stick that in your bag.  Or if you change doctors, you could take all of your health logs to have a instant health history to share with your doctor.
• Divider: One for HSA and one for FSA (HSA logs and FSA logs are in the pocket of the divider)
  • Page protectors are for receipts of items purchased with HSA or FSA dollars.  I write either "HSA" or "FSA" on the top of each receipt before I stick it in my inbox, and then during my review, I put a number in the appropriate log sheet and write the same number on the receipt and then log the rest of the information.  I put all the receipts that fit on one log sheet together in one page protector and when I finish a log sheet, I slide that in the front of that page protector and print out a new one for the pocket of the divider.  
  • At the end of the tax year, I take the page protectors out of the binders, put all the HSA ones into a hanging folder labelled with HSA and the year and do the same for the FSA receipts.  There’s NO work at the end of the year other than moving them to the archives after taxes are completed.
  • This also makes it easy to find a specific receipt if I need it for any reason.,  I can look at the logs to find the number of the receipt and then search for the receipt with that number written on it.
  • This is the bulkiest section in any of my binders, but also my favorite because it is such an improvement from the wad of receipts I used to have all mingled together!
    • ​If you don't use an HSA or FSA account, you could do something similar for health receipts for tax purposes.  Remember to consult your tax professional for details.
• Divider: Life Insurance
  • Page protectors hold each policy’s basic info.  Full policy documents are kept in archive storage.
• Divider: Health Insurance
  • Each policy has its own page protector including basic information, extra ID cards, and benefit election confirmations (having these election confirmations has come in very handy when selecting new policies each year!)
  • There is also a page protector for certificates of credible coverage which you get after ending coverage with a health insurance company and lists dates you were covered.  Future insurers may ask for copies.
  • The last page protector is for any hard copy forms you may need to complete for reimbursement, though now most are available online.

Property Binder - Yellow

• Divider: Auto Insurance
  • Page protectors hold policy documents and extra insurance cards
• Divider: Each vehicle gets its own (Corresponding Vehicle Maintenance Logs are in the pocket of the divider)
  • Page protectors hold completed Vehicle Maintenance Logs
  • Purchase documents are all put together in one page protector
    • When a vehicle is sold, page protectors relating to that vehicle can either be given to the purchaser, moved to archive storage, or shredded, whichever is appropriate
• Divider: House (Home Maintenance Log in pocket of divider)
  • Page protector for completed home maintenance logs
  • Page protector for estimates for future projects
  • Page protector for homeowners insurance policy documents
  • Page protector for property taxes
  • Page protector for escrow statement (if you pay your taxes through the financial institution that holds your mortgage.)
  • Page protector for home purchase information (ex. Original MLS sheet from when you purchased your home that shows square footage, features, list price, etc. or land survey or inspection information)

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Personal Binder - Blue

• Dividers for each family member
  • Page protectors for ID documents (current photo, birth certificate, baptism certificate, marriage license, etc.  Sensitive info should be stored securely)
  • Page protectors for each type of other info such as licenses, certificates, work samples, school handbook, etc.

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Fun Binder - Purple

• Divider Vacation - to store vacation ideas and info for scheduled vacations
  • Page protector for vacation ideas.  For example, if you pick up brochures or receive a mailing about someplace you may want to visit someday, you could store it here.
  • Page protector for each aspect of a vacation such as flight/train/bus, hotel, rental car, attractions
    • It’s great because you can just take the page protectors out of the binder, put them in a plastic folder and stick them in your backpack during the trip.  You’ll have everything you need at your fingertips and the page protectors are a great way to store receipts, postcards, programs and other paper mementos during your vacation so they don't get lost or damaged.  Most things are accessible via your phone these days, but I still have the fear of my battery dying or not getting a signal at the crucial moment I need to know the confirmation number for my rental car!
• Divider Holidays - to store info about current or upcoming holidays
  • Page protector for each item such as Christmas lists, menu plans, Christmas card lists, etc.
• Divider Activities - to store information about family activities that aren’t vacations.  
  • Page protector for each activity.  Examples are zoo membership info, flyer about potential activities like Tae Kwon Do or dance lessons, tickets to upcoming event.

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All of that fits nicely in ONE small drawer in my desk.  It's easy to access, easy to maintain, and best of all easy to find what I'm looking for or explain to my husband how to find something.   For example, when he called me after a 'vehicular incident' he had at home one day, I was able to say, "Go to the bottom desk drawer, grab the yellow binder, flip to the auto insurance section, and there's a page protector with our policy to see what the deductible is and an insurance card with our agent's name and number."  There's already enough stressful things in life, finding the paper you need doesn't have to be one of them!

What do you think?  Do you have a different system or other tips that you'd like to share?  Please comment on the post.  I'd love to get more input on the best way stay in control of our paper!

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Products

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​Sources
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Woodruff, Lisa. Organize 365.  https://organize365.com/.