PAPER CHASE

Paper clutter has always been tough for me. Let me just say I don't like paperwork. My bills are paid by draft just for this reason. Your bank can give you a large print statement if you call them. I have been working for the past week to throw away, sort and file my important papers. The lists below is some good information on household filing systems. I have not filed anything for several years. My husband keeps up with the really important paper, bills etc. Have you ever heard the phase "the cost of procrastination". It rang true for me over the past month. Here is what the BIG pile of papers cost me.

What I lost and found

* $20 check from 2007 from my sister which I tore up. We got $20 worth of laughs.

* $50 ATT rebate card. This was the one I lost and called to replace. Now worth $0.

* ATT phone rebate box I never sent in. Lost the $50 now worth $0. Let me just say rebates are a scam. They want you to forget to mail them in or mail incorrectly.

* Pictures we ordered in 1989 from our wedding for a couple who were in the wedding. I had a detached retina surgery 10 days after we got married.

* Two jewelry boxes full of out of style jewelry.

That's all I can remember at this point.

Identify and Inventory Important Papers

Now that you set up your home office, the next step is to identify and inventory all important papers. The following is a list of some of the papers to collect:

• Adoption papers

• Advisors and contacts list

• Baptism and other religious activities records

• Birth certificates

• Business ownership papers

• Citizenship and naturalization papers

• Credit card information

• Credit report

• Death certificates

• Divorce papers

• Education records

• Employment history/payroll stubs

• Financial accounts/investment

records/pension plans

• Funeral and burial plans and records

• Household property inventory

• Income and expense records

• Insurance policies

• Marriage certificates

• Medical records and family medical history

• Memberships and subscriptions

• Military records

Net worth statements

• Passports

• Powers of attorney

• Property appraisals, deeds, and titles

• Safe deposit box inventory

• Social security cards and numbers

• Tax records

• Utility records

• Veterinary records

• Warranties, guarantees, and owner manuals

• Wills and trusts

Keep Indefinitely

(Permanent or original records that do not change over time)

Examples include:

• Birth certificates

• Marriage records

• Death certificates

• Adoption papers

• Military discharge

• Citizenship and naturalization papers

Keep for Multiple Years

(Records for proof of payment or transactions)

Examples include:

• Tax returns with documentary proof (keep for a recom­mended three to six years; IRS Publication 552 has more details)

• Title to car until it is sold or transferred

• Receipts and owner’s manuals for major appliances until they are replaced

• Passports (keep until renewed)

• Mortgage contract and receipts for home improvements until mortgage is paid in full and house is sold or all claims of major damage are settled

• Deeds until the property is sold or transferred

• Investment documents (keep records until investment ac­count is closed; keep annual retirement account records)

Keep for One Year Minimum

Examples include:

• Bank and/or credit union statements

• Utility statements (good for calculating average monthly utility costs if you decide to sell your home)

• Credit card statements (even if they are accessible online)

• Other household budget records

Homeowner or auto insurance policies until they expire and new policies are put into effect

Keep Temporarily

(Items that await an action to disqualify their further usefulness, usually less than a year)

Examples include:

• Billings paid in full

• Credit card receipts until they are matched with the bill (keep for 60 to 90 days in case you need to return the item)

• ATM receipts and other bank transaction slips until they are matched with your statement

Setting Goals

Organizing your important papers is something you are not going to do overnight. You need to set realistic goals. Break this task up into smaller, more manageable goals. Here is an example:

Short-Term Goals

(Complete in less than three months)

• Set up your home office. Find your space and assemble your supplies.

• Order a copy of your credit report.

• Rent a safe deposit box at the bank.

• Begin to inventory and organize papers – determine which records you need to replace.

Intermediate Goals

(Complete in three to six months)

• Complete household inventory. Borrow a digital camera if you do not have one of your own.

• Complete your inventory and organization of files.

• Set up an appointment with your attorney to write or review your will.

• Finish replacing important records you have lost.

Long-Term Goals

(Complete in a year or more)

• Develop a system to track your expenses. Consider using personal recordkeeping software.

• Establish a regular annual time to review your records.