Savings Section
Getting Organized:
Your Second Line of Defense
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Superman has his cape. Batman has his utility belt. If there was an Organization Man he would have his file cabinet. |
To put it simply, organization is a war between you and your mailbox. The mailbox is steadily trying to clutter your house with paperwork, and you are trying to open, read and organize the incoming envelopes each day. Last month, we showed you an idea for a bill minder, which is your first line of defense. The second line is a file cabinet.
If you don't want to spend the $50 or so to get the typical two-drawer metal file cabinet, you can start with one of those plastic boxes that hold just a few files. If you have a roommate, you definitely should get something with a lock. See this month's article. Or you can spend hundreds of dollars on some antique oak beauty. Whatever it takes, just as long as you use it.
Buy a package of file folders and label the files. If you have a car, you'll need one for "automotive." This file is the place for your title, the purchase receipt and all the maintenance receipts. If you resell the car one day, you'll want a record of the maintenance. Also, if your mechanic says you need a tune up, you can go back to the receipts to see when that was last done. If you are financing the car, make a separate file called "car loan" for that paperwork.
If you own a home, you'll want a mortgage file. Here you'll put your amoritization schedule, record of deed, and all other documents you signed the day you closed. You can also, put your year end statements from the mortgage company here.
You'll need a file for taxes. Keep a file for each year including 2005 (to be filed next year.) The past years files will hold the returns you filed and any receipts, W-2s or anything else you would need in unlikely chance you need to defend the return. As for the current year, keep the file to put charitable gift receipts or anything that might tax deductible throughout the year. Chances are you won't remember donations made in March and charities don't necessarily send end-of-the-year receipts.
If you own a home, keep a file for your end-of-the-year property tax statements.
Keep a file for appliances. If you buy a new refrigerator or air conditioner, throw the receipt in here. Also, you can keep owners manuals in here.
Keep medical files. Keep a separate file for each doctor and household member. If you change doctors or yours ends her practice, you'll want to furnish a new doctor with a medical history. Also, if your medical expenses exceed a certain threshold, they can be tax deductible.
So, you get the picture. Getting organized without a file cabinet is like starting a fire with two wet sticks. Keep in mind you don't have to put all your files in place in the same day. Just get the file cabinet, get the files and wait for the paperwork to come to you.
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