Have you broken out in your usual sweat anticipating tax time? Do you find yourself dreading the hours it’s going to take to round up the papers you’ll need to complete your tax planner? Being ready for tax time is all about having a system for keeping certain paperwork separate from others.
The most simple way to keep your tax paperwork separate from other papers is to create a box or file labeled “TAXES.” If you want to get fancy, subdivide to create homes for:
- charitable donations
- childcare expenses
- medical expenses
- proof of income: W-2s, 1099s
- tax documents
The home can be a file folder, envelope, or even a dedicated box. Anything that is easy to drop things into throughout the year.
If you’re keeping every single receipt and account statement, it’s worth asking your tax preparer to give you a list of documents you actually need to keep. Typically these are only receipts and statements that prove expenses you claim as deductions on your taxes.
For paper organizing, it’s important to understand the difference between a general living expense and an expense you can claim as a tax deduction. For example, gas station receipts are a general expense, but if you use your car for business they could become a tax-deductible expense. There may be other reasons you want to keep every gas receipt – budgeting, MPG tracking, etc. but you may not need them for taxes.
If you want to take your financial organizing to the next level, consider the following:
- Use a money management tool such as Mint.com or Quicken® to categorize your expenses automatically so you just need to run a report at the end of the year (still need to keep your original deductible receipts)
- Use FreedomFiler® to manage your filing
- Have a professional organizer or bookkeeper come in and triage your 2019 taxes–and set up a sound system for 2020. You may also benefit from having help come monthly or quarterly to keep things straight
If it’s too overwhelming to get a system together for 2019, begin now with categories for 2020!
Did you know organizers don’t just organize? Professional organizing comes in all sorts of flavors. Some organizers are more generalists and cover lots of areas; others pick one specialty and stick to that. Have a look at the variety of challenges where professional organizers can help:
- Business development
- Children and teen organizing
- Chronic disorganization
- Closet design and organizing
- Corporate operations
- Digital organizing
- Estate management
- Estate sales
- Event planning
- Feng Shui
- Financial management/Bookkeeping/Bill-paying
- Garage sales
- Hands-on organizing
- Hoarding behavior
- Home inventories
- Home offices
- Home staging
- Household management
- KonMari organizing
- Notary Public
- Online sales
- Paper management
- Personal assistance
- People with disabilities
- Project management
- Psychology involved in organizing/productivity
- Records management
- Relocation and move management
- Social media
- Space planning and design
- Speaking and training
- Storage units
- Task and time management
- Team productivity
- Travel prep
- Virtual organizing
No matter the size or scope of your project, we can help you find an organizer with the specialty you need! Ask us for recommendations or go directly to the National Association of Productivity and Organizing Professionals — NAPO.net.
Filed under ADD/ADHD, artwork, Bathroom, Bay Area Services, Bedroom, Business Organizing, children, Closets, clothing, couples, Decluttering, disorganization, downsizing, Empty Nest, Garage, General Organizing, Holidays, home organizing, Kids, Kitchen, Laundry, Living Room, Memorabilia, Moving, Office, Paper, Reduce/Recyle/Reuse, School, Seniors, Storage, Technology, Time Management, Travel, Wedding
Let’s have a show of hands. Who loves to prepare for disasters and contemplate death?
…We didn’t think so.
Let’s have another show of hands. Who thinks of others and would like to make life easier on family and friends?
Here is a simple project to prepare for the unexpected. Regardless of the state of the rest of your house, these are the documents to keep organized and accessible just in case:
- Life or disability insurance policies and/or agent contact information. Don’t forget to include any coverage offered through your employer and/or auto insurance.
- List of assets and open accounts – you can gather sample statements or create a list of all accounts, loans, lines of credit, etc.. Make sure to include the safe deposit box key and information.
- Trust Document and/or name of your attorney
- Healthcare Directive and Financial POA
- Passwords and log-ins to unlock the phone or computer
- Medical cards and list of doctors/caregivers
- List of prescriptions
- Vital Records: Birth certificates, Social Security cards, marriage certificates, copies of drivers licenses
- If you own a business, who are the key contacts? What is your emergency plan?
- Funeral arrangements
Whether you are partnered or not, identify the person or persons who would be tasked with managing things in your absence and share with them the locations of these documents. It’s ideal to also keep a digital copy of these items and make sure your trusted helper has access to those as well.
Think of how much easier it will be for your loved ones, and better for you, if in the time of crisis they don’t have to dig through various drawers and files looking for information unsure what they may be missing. Creating a simple system for just in case is the kind of gift that provides peace of mind to you and to those who are left to take care of business when you can’t.
Filed under Business Organizing, Decluttering, General Organizing, home organizing, middle-age, organizing, Paper, paper organizing, Perspective, Seniors, Strategies
If you’re still getting these in paper form they are likely clogging up your filing system … or creating piles!
Pay stubs – They are informational only. When you get your pay stub each period, check it over to make sure your vacation, sick balance and other deductions are accurate. If all is okay, you don’t need to keep it. Your W-2 form at the end of the year is the only record to keep for taxes. If you need written evidence of accrued benefits, keep your last pay stub of the year. That would have your year-to-date accumulations. If you get electronic paystubs, then for sure, shred the archived ones from long ago.
Expired insurance policies – once the term is over, the policy isn’t valid. Having a claim or loss in the previous period, might justify keeping it. But most folks don’t have this issue and old policy statements can be tossed (shredded) when they expire. You’ll be surprised how many years back these bulky documents go. Hit all the categories – auto, home, life, umbrella, etc.
Monthly investment statements and activity confirmation statements. Once you receive the quarterly or annual statement, these documents are redundant.
BONUS! Banks and credit companies CYA privacy policies and term sheets. Have you ever had to refer to these in the lifetime of your credit card or account? They could trigger you to update your privacy settings with the institution (online or in writing) but if you know you will never get around to it, just let them go. All these are available online.
Give yourself the gift of a clear desk or roomy files by removing things that just make you feel unsure and guilty. If you truly can’t imagine letting these items go, get them in a box (labeled, with a “date to destroy” in a reasonable amount of time) and store them far away from your active work space.
The worst time to try and find something is when you need to have it and have little time to find it. Crises strike in many forms – natural disasters, family deaths, sudden moves, illness, divorce. Hindsight is 20-20 and that’s when we often get total clarity about what could have been done to prepare and alleviate some of the stress of the crisis.
You can be one step ahead by finding and organizing critical documents. Believe it or not, we have found all these for clients hiding among hundreds of other papers in drawers, bags, and boxes…
- Titles for cars
- Deductible receipts and statements for the current year
- Grant deeds for owned property
- Passports, birth certificates and death certificates
- Original stock certificates
- Improvement receipts so homeowner could deduct from purchase cost of house to reduce taxable profit
- Genealogy records
- Open bank and credit accounts that had been forgotten
- Will and trust documents
- Life insurance policies
- Contact info for all companies that insurance you
- Social Security card
- Pension and retirement plan records
- Marriage and divorce documents
Many of these can be replaced if lost but often not without cost and hassle.
If you aren’t ready to create an entire filing system at least make sure to create a dedicated home for these essential documents.
Bonus: keep your important documents in something portable that you can grab in an emergency. If all you have is a cardboard box to collect your important documents, use it. Progress is better than perfection!
If you want to go a step further, there are products available to help you capture your vital documents. A few to consider are: FreedomFiler®, Vital Records PORTAVAULT® or Suze Orman’s Protection Portfolio.
“The Freedom Filer kit is fantastic and was easy to move when I evacuated. Everything I needed was there. I love it!” Kathleen, LA wildfire evacuee
See our prior post about how FreedomFiler® works.
We’ve all been guilty of it – hanging onto business cards that somehow end up on dresser tops, stashed in drawers, or floating around on counters. We sort of know we probably don’t need them but there’s a nagging sense of importance about them that makes them seem valuable. So, we neaten the pile or shove them back in the drawer and forget about them for a while.
Why are you keeping them?
Managing clutter is all about making conscious choices. The first step to getting a handle on those stacks is to take a clear look at your motivations for hanging onto them:
- You may want to use that person’s services
- Something you want to do someday
- Somebody you want to network with
- Neighborhood services
- Cards of services you use regularly
- Nostalgia – cards of family members, cards of your past careers
- Cards whose designs you like
Figuring out why you’re keeping them helps you get clarity on how relevant the info actually is. That informs whether you really want to continue to keep them and how you store them. Part of what makes business cards a less precious resource than we think is there are so many ways other ways to find services and people – Facebook, Yelp, list serves, LinkedIn, Google… put in bits of information into a search tool and have that person show up.
After you do a serious purge of the stacks its time to decide how to store the keepers.
Store for easy retrieval
Ways to store them
- Electronically – scan or enter into your favorite digital address book tool
- In a mini-file box
- Rubber-banded in a drawer or on a shelf
- In a rolodex
- Binder sleeves designed for business cards
- File in a resource section of your filing system (can attach card to larger piece of paper)
Make them useful
If you are keeping cards, it can also be helpful to jot a few notes of relevant info to help you remember why you have the card. Write on back (have a sharpie close by):
- Next actions/promises you made to them
- Where you met them
- Your follow-up plan
- Interesting fact about the person (their dog’s name, for example)
- What you have in common with them
- Who you both know
- Key words (name and date of event, category of contact)
It’s perfectly fine to hang onto cards you may not actually need or use — so long as the stacks of cards don’t stress you out and don’t impact your usable space. If they impact your peace of mind or are getting in the way – take action to clear the clutter.
When you browse through your business card hoard, what is the wackiest card you find?
Do you find your household paperwork doesn’t have a home? Is your bedroom getting used for stashing unmanaged mail? Do you have papers and mail all over the house? Are you frustrated that your home never looks tidy? Many people use a large portion of their kitchen counter to manage notes and mail…and it spills over from there. But the kitchen counter space often doesn’t provide enough room for a tidy work space.
All these scenarios point to the importance of dedicating a space for a household management center.
The ideal location for a household management center is close to where this work usually gets done. Kitchen, dining room, living room are very common areas. Look where your paper is accumulating and see if you can dedicate a bit of space to make it an “official” work area. Active projects need to be out and accessible where you will really work on them. Where does the work actually get done?
If you have a more remote home office but don’t find yourself staging the mail and active projects there, you might find paper clutter creeping into the living space. It would be appropriate to create an active work station more centrally and store overflow and permanent files in the office. For example, if you find yourself most often sitting on your couch paying bills online, can you create a space there to catch incoming bills?
The Critical Bits:
- Active projects: to-do’s and bills to pay
- Active reference: family schedules and phone lists
- Basic office supplies (stamps, envelopes, paperclips, post its)
- Dedicated containers to get the recycling and shredding out of the way and off the countertop
Nice to Have Nearby:
- Printer – can be hidden or made wireless so it can be stored in a back room or closet
- Main household filing system – including past years taxes and permanent records
- Overstock office supplies
- Kids’ art portfolios
Instead of berating yourself for being messy, embrace the idea that household management needs dedicated space. And give yourself the gift of organization.
Filed under Decluttering, home organizing, homework, Kitchen, Living Room, Office, organizing, Paper, paper organizing, Perspective, Storage, Work