How to Organize and File Documents

What you need:
Fire proof filing cabinet
File folders (hanging ones are best)
Binder(s)
Tab dividers

*The number of file folders, binders and tab dividers will depend on how many separate name categories you have created.  It’s best if you buy these supplies after you have created your categories so that you know exactly how many folders you will need.

1. Designate a floor space or a large table where you will make piles of all your documents. Organizing your documents is a process and therefore you will want to designate an area where you can make piles of your documents so that if you don’t finish you don’t have the hassle of putting all the piles together and then separating them again.  Depending on the amount of documents you have this could take you an entire weekend, or better yet, spend at least 30 minutes per day going through your documents.

2. Organize your documents into piles separated into name categories.  For example, water bills in one pile and bank statements in another (separate piles for each bank).

3.  Once you have put all your documents into separate piles take a piece of paper and make a list of the different companies or document names that you have created.  For example: Bank of America, Water Bill, Car Loan, State Farm Insurance, AAA, Student Loans, etc.  Alphabetize this list.  If all your documents are stored in a filing cabinet in alphabetical order, it will make it easier for you to find your documents.  Make sure to keep a clean alphabetical order list of all your pile names.  You can place this list in your filing cabinet as terms of reference.

4. Now you are going to write each of your pile names on the tab of the file folder or on a separate tab paper that you insert into the hanging file folders.

5.  Put all your file folders in the filing cabinet in alphabetical order.  Now you can start filing away your documents.  As you file away each pile into its proper folder put the documents in chronological order with the newest on top.  Check with state and federal laws when it comes to finding out how long you should keep certain important documents.  Some documents, such as payroll stubs, may have to be kept a lifetime while others five years.  Don’t forget that a fire proof cabinet will safeguard your important documents in case of a fire or burglary (if you lock your cabinet).

6.  If you feel that you need to have a back-up of your documents or if you just want to have the year’s documents at hand (for tax purposes for example), then it is recommended that you make binders with a copy of your documents.  Depending on the amount of documents you have, you could separate your documents into categories such as bank documents, bills and investments.  Don’t forget to label your tab dividers so that everything in your binder can be easily accessible.  Putting a copy of list of the tab categories you have in the beginning of your binder will help you better reach your documents.