In part two of this series, we covered how a decision making filter will save you time and energy by narrowing down your focus to what information is essential to take action on. You decided up front what items are deemed urgent versus important or require input from others. Let’s look at the last part of your system.

Step 4: Define Your Categories

As the primary person who's responsible for paying bills and managing paper, you should be the one to define the naming and categorization for your files. There’s no one “right way” to name and categorize. I suggest making it as simple and straightforward as possible: name your digital files and your paper files in the exact same manner. That keeps things consistent both online and offline.

My main categories are as follows:

• family (one folder for each person, labeled with their first name)

• finances (one folder for each provider or general category, like bank or car)

• health care (one folder for each calendar year)

• essential documents (one folder for each type, like birth certificates)

Once you’ve paid a bill or decided to save a particular paper, you can either recycle it, scan it, shred it, or store it.

Storing paper can be done digitally or in a filing box. Remember, any papers that you choose to save or store will eventually have to be disposed of…either in a few months or in decades. Saving paperwork isn’t a shortcut; it’s a decision to label something as worth addressing again at a later date. (Bulk, secure shredding is a great disposal option for out-of-date paperwork.)

As you file, label with a category that easily comes to mind: car or vehicle, medical insurance or dental insurance, 2021 tax year or 2022 tax year. If you’re using a date or number, put it first on the label. For most of us, having larger groups of categories will be sufficient. Lots of smaller categories can lead to overwhelm or difficulty remembering in which file a paper belongs.

Step 5: Pull It Together

Any new system takes practice. Once you have a holding place for the papers coming in, make sure you know how frequently and when you’ll sit to process the papers. I actively manage paper each Sunday for about 30 minutes. I don’t enjoy long stretches of decision making, therefore, I take action weekly. For me, the motivation is more about what I don’t want (piles + long decision making sessions) than what I do.

I also prefer digital filing to saving mounds of paper. For essential items related to my family, finances, or health care, I keep both a digital and paper copy. After 1 year, I review saved paper and shred if no longer relevant (bills that have the paid, for example).

Eliminating piles of paperwork clutter starts today. You can set aside time to address older piles of paperwork once you’ve established a system, a routine, and a decision making filter. You’ve got this. You’re more organized than you think.

I’m hosting monthly workshops! Feel free to register and embrace an organized life today.