Do You Have a Filing System for Documents?

[karen1972]

I voted no as mentioned in my OP, at best I have organized disorganization.

What I may do is adapt some of the concepts of the FreedomFiler, but since no matter what things will be not all in one place, will save the cost of getting a kit. Here's a youtube on the system in case you are interested:

I like FreedomFiler's concept of having odd/even years that get cleaned out.

I bought this system 15ish years ago, I really liked it, made me realize I was keeping WAY too much paper. Transferred same logic over into digital and still sort it that way as I don't tend to get too much paper these days. Its very satisfying to delete an entire folder. So now my Freedom Filers is mostly tax records, ROTH tracking, and policy docs/etc that I replace whenever I get a new policy.

 

[sengsational]

Just a few...

Mountainsoft's process and reasons are very similar to mine.

Thanks for sharing your justification and processes for scanning. I think my experiences with scanning were before the days when the automation helped curate and when scanning took longer. Maybe some day.

 

[Montecfo]

The paper vs electronic discussion is interesting. I would just argue there is little need to either scan or file most documents. So I have paper, electronic and in some cases both, a hybrid.

My document retention is in 3 key areas (and I think these are the same for most people, regardless of how they approach record keeping).

1. Tax- for me these are paper and more recently electronic also. And I have these back to my first filings, with all support on paper. Do I need that? No. But they take little space and pulling and finding a way to shred them is an unneeded step.

2. Investments- for basis and tracking history. Keep until investment sold. In my case I have YE statements going back forever, spreadsheets reflecting history of each account, and it's original source, going back forever. So I know what happened to every account I ever opened. For recent years I keep electronic only for most. For taxable accounts I also keep paper and file with my tax backup. Also medical expenses for HSA withdrawal support (for whenever we begin that).

I have a paper binder for each of the houses we bought as investments-to flip. These were never electronic and I see no need to scan them. Will keep for 7 years for tax support

3. Legal- marriage licence, birth certificates, vehicle titles, wills, insurance policies, loan agreements, trust docs, family and medical history, etc. I keep these in a fireproof file. Generally these are not electronic docs.

I do not scan records that are paper. There is just little payoff. Most will be thrown away within days or weeks.

Most of my bills are paper. I keep 1-2 years of regular bills. Thin these down at tax time. It is part of a letter sized file drawer. I think whatever method you use for this matters little as long as you know what you paid for and retain docs which fall into the other categories.

I also keep a list on my computer of what I have archived, and where it is located. When I trash the files, I note that also, so.i will not wonder whatever happened to some record. A copy of that is in each file box. So if someone opens a box ( there are five archive boxes and one file drawer) they have a list of what is inside.

So anything I need I can find.

A relative recently said he had to order a copy of his tax return from IRS because he could not "put his hands on" his most recent return. Absent a natural disaster, how does this happen?

 

[Katsmeow]

I do not scan records that are paper. There is just little payoff. Most will be thrown away within days or weeks.

There's the difference. I use scanned in stuff almost every day.

As I mentioned in an earlier post, I quite often look back at a receipt to find when I bought something or where I bought it what I paid, etc.

I was working on budgeting the other day and I was trying to see what we were spending money on at the grocery store. I could, of course, just go by memory. But, instead, I searched for the prior 3 months grocery receipts and just did a quick spreadsheet categorizing what we spent on various categories such as fruit, soft drinks, cereal, frozen meals, etc. Was this a necessary task? Perhaps not. But, because I had the receipts it was easy to do.

Or, I might go back and look at old medical test results. I have lab results from the past and it has been helpful to go back at times and look at how something has changed over time.

Basically because I now have this data and use it regularly for things large and small it seems antiquated to me that I didn't use to have it. Now that I have it, I use it on an almost daily basis in one way or another.

A relative recently said he had to order a copy of his tax return from IRS because he could not "put his hands on" his most recent return. Absent a natural disaster, how does this happen?

Well. I just went online and got a tax transcript for my last year's return. I routinely make a PDF of my return when I do it (I use tax software) and I typically save it to two places: a folder for my tax software documents that I keep on my data drive. I keep this on a separate drive from my C drive where I keep programs. I then make a copy which I keep with my archived documents. I keep tax returns locally though and don't upload them to Evernote.

Anyway - several aspects of human error occurred.

When I installed my tax software last year I failed to change where docs would save to. As a result my tax return files and PDF were saved to my C drive.

I forgot to make a copy for my archived documents.

I decided to replace my C drive with a larger SSD drive. Before doing that, I went in and made copies of anything on that drive I needed. However, I did not realize that my only copy of my tax return and my tax software files were on the C drive. I thought they were on my data drive.

I didn't realize this until I needed to make a copy of my tax return and I couldn't find it. I then realized the above had to be what happened. FWIW, I was able to quickly download a copy of a tax transcript which gave me all the info I needed. I do still have the old C drive and theoretically I could probably make it into an external drive and could get the tax return but it is the only thing on that drive I would want so it isn't really worth it.

 

[mountainsoft]

I would just argue there is little need to either scan or file most documents.

These days most documents can be obtained electronically, eliminating the need for paper in the first place. I can easily download the PDF file and save it on my hard drive.

There's also no need to scan most common receipts for things like groceries, clothing, or other items I know I'll never need to refer to again.

I do scan receipts for items I may need to know about in the future, like a new TV, refrigerator, water heater, or major auto part. There have been MANY occasions when I have needed to refer back to those types of receipts and was thankful I scanned them.

 

[Potstickers]

I still have paper, but the filing system is not that complicated.
For each year, I have a three files: Potstickers General, Potstickers Tax, Potstickers Medical. I also have a file for each car, one for the house, and one for each insurance policy.
When paper comes in, if it is tax-related it goes in the tax file. Medical, the medical file,...
I don't make any attempt to impose order within the files. If I need to find something, it takes under 2 minutes.
It works for me.

I staple purchase receipts for significant items inside the front cover of the user manual for the product.

 

[scrabbler1]

Just to clarify, I keep one calendar year plus the current year in progress for bills and receipts such as credit cards and utilities. With 2020 just under way, I will toss out 2018 and move 2019 to replace it as 2020's storage area begins building.


Medical receipts I keep for tax purposes (if I ever happen to itemize again) or they go into my medical folder. On bills, If I made any notes, I will keep the bill. Otherwise, it will get tossed when its time is up.


Income tax folders: I keep full folders for 7 years but older than that I keep only copies of the returns and key supporting documents such as 1099 forms and my homemade worksheets. Since I began using the free fillable forms a few years ago, I don't have to keep as much paper. But simply getting rid of the instruction booklets greatly reduces the bulk of the older folders.


I have canceled checks and checkbook registers going back to the 1980s. They don't take up much space, maybe one shoebox. I keep my annual statements from investment companies in a loose leaf binder.


Every few years, I go through some folders which have become obese with useless or repetitive fluff such as banking and investments and trim them down.


I have an old scanner but it is cumbersome to set up and use so I won't be getting into that business any time soon.

 

[Montecfo]

There's the difference. I use scanned in stuff almost every day.

As I mentioned in an earlier post, I quite often look back at a receipt to find when I bought something or where I bought it what I paid, etc.

I agree that is valuable. I use quicken for that. These days if it is a major purchase i will also add the scanned receipt to Quicken, but the need to do so is rare for me.

On the budgeting issue, I capture expenses in Quicken in whatever detail i expect to need. So i can slice/dice that in whatever way I want to. But it is less detailed that keeping each receipt, for sure.

Or, I might go back and look at old medical test results. I have lab results from the past and it has been helpful to go back at times and look at how something has changed over time.

Yes. I have my medical spending electronically as part of quicken. But labs, scans, test results I do scan and archive as permanent records.

On your tax return, I agree that was a confluence of unusual events that conspired against you. I also keep a backup of my hard drive that would make losing the electronic copy less likely, and I also keep a paper copy. But in the instance I was referring to, I think the person on question is not particularly well organized, unlike yourself.

As long as you had the original tax software, you could go in an "reprint" your tax return to file. Perhaps this was also a casualty.

In any event, than you for the detail and explanation.

 

[mountainsoft]

I have canceled checks and checkbook registers going back to the 1980s. They don't take up much space, maybe one shoebox.

I used to keep all of our checkbook registers and bank receipts in our old check boxes (the box they sent new checks in). I had eight boxes in my drawer, one for each year. I would empty the oldest box to start each new year, updating the year label on the front. I used this system for over 30 years but finally realized I NEVER looked back at receipts that were more than a couple months old, and even that was extremely rare.

So a couple years ago I threw out all the check boxes, and simply keep an envelope in my desk drawer to hold the last month or two of receipts. I scan anything important that I may need to look back at in the future, the rest just get tossed.

I can't remember the last time I wrote a check for anything, but if I do I can always download a copy from my banks web site. So there's no reason for me to have a copy.

I also switched to using MoneyDance for managing my finances, so I don't use paper check registers anymore either. It took a few months to adapt to the new system, adjusting to a different style of balancing my checkbook and whatnot. Now I can't imagine going back to paper check registers.

These days with auto check deposit, auto bill pay, downloadable electronic statements, and online tax preparation, there is virtually no paper involved in our financial life. I scan the occasional store receipt and maybe a tax form each year and that's about it.

 

[scrabbler1]

I used to keep all of our checkbook registers and bank receipts in our old check boxes (the box they sent new checks in). I had eight boxes in my drawer, one for each year. I would empty the oldest box to start each new year, updating the year label on the front. I used this system for over 30 years but finally realized I NEVER looked back at receipts that were more than a couple months old, and even that was extremely rare.

So a couple years ago I threw out all the check boxes, and simply keep an envelope in my desk drawer to hold the last month or two of receipts. I scan anything important that I may need to look back at in the future, the rest just get tossed.

I can't remember the last time I wrote a check for anything, but if I do I can always download a copy from my banks web site. So there's no reason for me to have a copy.

I also switched to using MoneyDance for managing my finances, so I don't use paper check registers anymore either. It took a few months to adapt to the new system, adjusting to a different style of balancing my checkbook and whatnot. Now I can't imagine going back to paper check registers.

These days with auto check deposit, auto bill pay, downloadable electronic statements, and online tax preparation, there is virtually no paper involved in our financial life. I scan the occasional store receipt and maybe a tax form each year and that's about it.

I have some gaps in my canceled checks in the last 5 years because I would forget to print them out from the bank's website. By the time I realized it, it was too late to print them out because they were more than ~18 months back.

A checkbook register is a very efficient way to store my banking records; they take up far less space than monthly banking statements. I have a spreadsheet which mimics a checkbook register but I didn't begin computerizing them until 1995 when I bought my first PC. So the older stuff is available only on paper. Even 20 checkbook registers going back ~36 years don't really take up much space, less than 12 inches in a shoebox. I have written very few checks in the last few years, so they take up little space, too.

 

[easysurfer]

I bought this system 15ish years ago, I really liked it, made me realize I was keeping WAY too much paper. Transferred same logic over into digital and still sort it that way as I don't tend to get too much paper these days. Its very satisfying to delete an entire folder. So now my Freedom Filers is mostly tax records, ROTH tracking, and policy docs/etc that I replace whenever I get a new policy.

I like some of the concepts of the Freedom Filer system. Mainly, even/odd year folders get deleted regularly.

 

[2177V]

Step 1: Build shelf space in your garage. Use inexpensive plywood and inexpensive brackets installed on every stud. Use every cubic inch and do not waste valuable space.

Step 2: Place your paperwork in banker boxes with the boxes labeled on the contents.

Step 3: Store the boxes on the shelves per attached photo.

When you need to find something, One glance on the boxes will enable you to find it quickly. No more archived paperwork in the house. A garage should have three walls for shelving and the photo only illustrate one wall. My other two walls are similar. Does not have to be all documents. It can be miscellaneous stuff as well.

 

[timo2]

by 'filing system' I have an electronic filing system. All pertinent docs get scanned. The current ones anyway. The ancient ones are in paper in cabinets that I need to clean out.

 

[NoMoreJob]

We have a desk (with file drawer), a credenza (with file drawer) and a small safe. The desk has frequently accessed (typically monthly) files, the credenza less frequently accessed (every few months or less), and the safe contains important documents that require more protection from prying eyes, fire or water. I also have a few totes with documents like old tax returns, home equipment information/warranties, etc. Works well for us.

 

[nvgs123]

My filing system is the crosscut shredder that sits right below my ScanSnap.

I run things through the scanner and save them as a PDF, then shred the paper.

There are very few things that can't fit into this system, so a small file box that fits into the safe handles them nicely with lots of room to spare.

I, too, have the same set-up...scan, shred, then file into Dropbox. I can retrieve any document needed from any device connected to internet. its quite handy.

 

[DrRoy]

Have had a home made, hanging file system for decades.

 

[MrsHaloFIRE]

I have a box...and that's it. The box has 2019 on it...and I am ready for a new box with 2020 on it. All hardcopy things that are "needed" go in there and I will sort it out as part of my tax planning each November. Some "permanent stuff moves forward into the current year, but the rest stays in the box when it happened.

After 2019 taxes are done, then 2018 goes in the attic, and 2019 goes in the closet, while I fill up 2020...been doing that for many years. Electronic receipts are printed so they can go in the box.

Wondering what happens 20 years later? You've got 20 boxes in the attic, clearly. DO you have a "shred on" date? DO you deal with it when you move? Is it an adventure that will be a problem for your heirs but not for you?

 

[mickeyd]

What do you do? Do you have a system

Yes I have MY system but I doubt that it could be your system. Just take some time and think about how you want your mess to become organized. Your filing system, like your retirement/investment Plan, will be different than mine, but just as good.

 

[mystang52]

Admittedly, I "fell off the wagon" several times when I stopped using this system, but it did wonders for me in my working days (especially when things were more paper-intensive). Author Stephanie Winston wrote a book called the Organized Executive. She said only 4 things you can do with a piece of paper, TRAF:
Toss
Refer
Act
File

I tend to "File" more than I should, which leads to too much paper. But when I cull out those filed papers, with time I can comfortably toss a lot of it.

 

[24601NoMore]

I, too, have the same set-up...scan, shred, then file into Dropbox. I can retrieve any document needed from any device connected to internet. its quite handy.

I've thought about using Dropbox to store scanned docs also on several occasions, but am not yet entirely comfortable with the security aspects of putting confidential docs with PII and other financial data up on "the cloud"..

Are you encrypting docs before uploading? I believe DropBox was hacked at one point (2016?) and while that appears to be more related to getting ~62 million user ids and passwords, not entirely sure what the security of posted docs was or may be nowadays..ditto for the other Cloud services - not just DropBox but just about any one of them..security of posted docs is something I think about a lot and probably why I still keep everything only local (NAS, jump drive or local hard drive)..

 

[indiajust]

pdf's organized by account, by year, by person. taxes separate, by year, by person, all forms and documented deductions. Every single bank statement since 1980 or so. Retirement basis and rollovers by account. Plus all the transactions in Quicken.

Every resume, application, mortgage, supplementary paperwork... no credit card statements, balance in quicken is sufficient. Even vast majority of cash transactions, barter, gift cards, rebates, refunds...

And of course all the investing transactions and returns...

 

[RobbieB]

Step 1: Build shelf space in your garage. Use inexpensive plywood and inexpensive brackets installed on every stud. Use every cubic inch and do not waste valuable space.

Step 2: Place your paperwork in banker boxes with the boxes labeled on the contents.

Step 3: Store the boxes on the shelves per attached photo.

When you need to find something, One glance on the boxes will enable you to find it quickly. No more archived paperwork in the house. A garage should have three walls for shelving and the photo only illustrate one wall. My other two walls are similar. Does not have to be all documents. It can be miscellaneous stuff as well.

That is amazing! All that paper in all those boxes on all those shelves.

I'm glad I don't have so much paper. I don't even have that many books.

 

[OldGrady]

I hate clutter (i. e. Boxes of paper or folders of electronic papers). The shredder is my friend. I keep only YE financial documents.

 

[Darrenb5]

I've been digitizing almost all of our docs for the last couple of years and uploading them to Google Drive. The advantage for me is that the drive is searchable and I can find stuff easier. I just take a pic of the doc using Adobe Scan on my phone, upload it to Google Drive as a PDF, then destroy the paper copy.

 

[sengsational]

Wondering what happens 20 years later? You've got 20 boxes in the attic, clearly. DO you have a "shred on" date? DO you deal with it when you move? Is it an adventure that will be a problem for your heirs but not for you?

The same can be said for paper as for electronic. When and how do you get rid of it? One may say "yeah, but paper takes space and electronic doesn't." It depends on your definition of "space". If you have a file of any kind, it's my thinking that you must curate it, even if that just means going in and deleting anything older than 7 years, or whatever. Oops, there were some "never delete this" documents in the 2011 box (or electronic folder). Maybe you "never delete" anything electronic. Then you have the problem of your search results returning documents that really should have been deleted. Or you could increase your mental burden of doing your searching with a date range. Just yammering on about it, as you can tell. I'm a paper guy, and anti scanner guy because keeping ongoing access to your cloud account in the very long term might take effort, just as moving documents from local storage media formats as technology changes might take effort. The point I was going to make, though, is, paper guy or not, the huge shelf in the garage would bother me. That's why I limit myself to the three "crud-enzas" in my office, all hanging files. When one section gets "tight", meaning I can't slide it back a couple of inches to pull out a folder, stuff goes in the shredder.