Category: Paper Management

Tax Season Has Ended – Whew! 5 Lessons We Learned.

I truly believe we can learn from every experience, if we’re paying attention.  Every day, every moment, every experience.

Along that line of thinking, I just wrapped up a call with a good friend / network partner, and the last thing we did was Review and Recap what we had discussed and what our next steps were.

So, let’s Review and Recap what we have learned from this most recent tax season, just ended, and what we can do to make next season more organized and less stressful!

 

  • “I could have started preparing  a lot earlier. “  Start early.  There is really no reason not to.

ACTION STEP: Take a few simple steps now to make next April go much smoother!

 

  • “I keep too much paper!”  Everyone does, it’s true.  Consider all the documents and information that you needed for filing your taxes.  Obviously, we need to keep those documents!  But the receipt for a trip to the grocery last February?  Or our paid Com Ed bill from last June (which we have recorded in our banking statements)?  Not so much!  And ESPECIALLY not those old receipts or paid bills from many years gone by!

ACTION STEP:  Call me!  Or, read my other blogs on paper management and change the way you save paper.

 

  • “This process would go a lot smoother if I made a file folder at the beginning of the year called ‘Tax Documents: Current Year’, and added to it through the year as pertinent documents came in.

ACTION STEP: Make the folder, title it “Tax Documents: Current Year”, and USE it!

 

  • “I should adjust my withholding, then I wouldn’t owe so much next April.”  And if you’re self-employed, like me, perhaps you said (as I did), “Perhaps it’s time to start sending in quarterly tax payments, instead of one lump sum.”   Yes, you should.

ACTION POINT: Talk to your HR department, or if you are self-employed or own your business, discuss your options with your CPA.  April 14th of next year is too late to make positive changes for this year.

 

  • “Wow, A lot of people must procrastinate about their taxes.  My usual accountant barely had time to speak to me last week and those other places were a zoo. I could do my taxes myself, but not if I wait until the last minute.”   Yes, all true.  Lots of people procrastinate. Don’t be most people.  Refer to the other learning points above, and …

ACTION POINT:  Book your appointment for next February NOW!

So, take a few actions this week to make this year more organized, and your tax season next year go more smoothly!

What Was That?  Three Types of Paper, You Say?

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The Second Tuesday of March is National Organize Your Home Office Day.

Over the past 13 years, I’ve learned a lot from my clients and experiences in home offices.  Why are Home Offices a Challenge?

  • Home offices are still evolving, as more workers move out of brick-and-mortar offices.
  • With a blend of both home and office, there is just more paper to deal with, plus the boundaries between professional and personal papers blur.
  • Industries often provide Document Retention Policies, with clear instructions about what papers to keep, and how to confidentially get rid of documents when they are no longer needed (consider medical records in a hospital).  However, personal papers do NOT come with document retention policies, and we have to create them.

Most of the papers we have in our homes and offices fall into three categories:

  • Active;
  • Passive; and
  • Archival.

Your home office undoubtedly contains all three types, and each type requires different handling and storage.   Here ‘s what you need to know about each type:

ACTIVE PAPER

Active Papers are defined as papers that require some action to be taken.  Examples of Active Papers are: a bill to pay, a greeting card to send, a form to complete and send back to school.  The actions required might be a bit more complex, too, for example: a sports schedule to be entered into your calendar; a business card from a new contact that needs to be entered into your contacts and also an email sent; a reminder to call someone or make an appointment.

The most important thing to know about Active Papers is to ACT ON THEM, and then move them on.  So, pay the bill, send the card, complete the form, enter the info, make the call, send the email.  And them move the papers along, either into Passive storage, Archival storage, or the shredder or recycling bin.

PASSIVE PAPER

Passive Papers are Active Papers whose actions are complete.  Now, they require no further action except for retention for a predetermined amount of time (for reference or just in case), and then safe and confidential disposal.  For example, you may decide to keep one full year of receipts, paid bills, statements and the like until you file your taxes for last year.  Some people may feel more comfortable keeping 2 full years, and that’s OK, too.

The important thing to remember about Passive Papers is the “keep for an amount of time and then dispose of them” part of their definition.  Often my clients and I unearth grocery receipts from 4 years ago, maintenance records for cars they no longer own, or the electric bill from 7 years ago.  None of these papers have any bearing on our life today, and are just cluttering up our office and files.

Set up your Passive Paper files to store each month’s info together (no more micromanaging your filing), decide how long – 1 year or 2 years – to keep your Passive Papers, then put an annual date on the calendar with your shredder for old Passive Paper destruction.

ARCHIVAL PAPER

Archival Papers are the papers you will need in 5, 10, 20 or more years.  Archival Papers may include, but are not limited to: mortgage papers, car titles, certificates (birth, marriage, sacramental), passports and original social security cards, etc.

There are two tricks to handling Archival Papers.  The first is to be able to identify what is TRULY archival.  A couple questions to ask yourself:  Who else needs to know this info? Will it have bearing on my life or decisions in a year or 10 or 20?  Will someone ask me for this information some day?  How important was the transaction attached to this information?

Very few papers actually make it to Archival status, so you don’t need to dedicate too much space to them.  But the other important tip you need is to keep your Archival Papers SAFE. Invest in a portable fireproof safe, or a safety deposit box at the bank.

Invest a little time to day and this week to restore order in your home office.  Consider the various piles of paper in your space, determine what type of papers  you have, and plan your work and storage accordingly.

Productivity Series: What to Do With All the Receipts?

Last week, I started this Productivity Series with solutions for the desk dumping ground! A related question was “What to Do With Receipts? specifically receipts for filing business taxes?” I understand the connection  – I’ve seen dozens of desk cluttered with receipts!
Think about this.  Generally, we need to keep receipts for three reasons:
1. for the information contained on the receipt;
2. as a reminder of a next action to take; and
3. as a physical record of an action, in case you need to prove how money was spent.
Next, think about basic accounting. Money spent moves out of “Cash” and into a different category.  For example, buying a printer at Office Max / Depot moves money from my checking account into my office supplies / assets.
Reason #1: Manage the information contained on the receipt.  How much, to whom, for what?  And make it meaningful.
For example, my business recently spent $$ on:
  • a new printer and toner, a lamp and pens
  • advertising in the form of a charitable donation  / sponsorship
  • gas
  • day-care expenses
  • lunch at Panera
  • annual dues for my professional organization
  • UPS for shipping, on behalf of a client
Each expense I mentioned above would be listed under different Expense categories in my Quicken software.  Office supplies, advertising, Dues and Subscriptions, Meals and Entertainment, Automotive, etc.  These categories are pre-set in Quickbooks and Quicken, and you can also create new ones specific to your business. (I’m not recommending one type of software over another, just reporting on what I know).
Since my friend’s question was about Managing Receipts for Tax Time, I strongly recommend discussing category questions with your Accountant as you set up your system, to make tax time easier. 
Manage your bookkeeping regularly (and if you need help with this, I can suggest a few great people!).  My business books are simple.  I track my expenses and sales daily on a spreadsheet, entering it all into Quicken once a month with my bank statement reconciliation.  My next step is to streamline that process, and enter the daily info directly into Quicken.   Some businesses will need to do this daily, some can stretch to weekly or monthly.   Regardless of how often, We HAVE TO DO IT!
Once the categories are created, and your information for the year is entered, preparing for tax time is a matter of running your reports, and handing the reports and receipts over to your accountant
Reason # 2: Take The Action Required:
For example, in my list above, the actions are to input the information into Quicken, and then with the UPS expense, I need to collect payment from my client, for services rendered and also for the UPS expense.  When I manage my bookkeeping, I need to make sure the two items are entered separately – one for sales, and one for reimbursement.
Manage your bookkeeping, send the invoice, submit the expense report, etc.    JUST ACT!!!
After you record the information, and take the actions required, storing the physical records is easy.
 
Reason #3: Keep your receipts in a monthly folder.   This makes it easier to reconcile your monthly bank statement, and in the rare instance that you actually need to produce the receipt as proof of an expense, monthly files will make your items easy enough to find, without wasting too much time on filing.  Don’t bother with specific vendor files, chronological files should be detailed enough, since you’ve already recorded the information.
Wrap up your receipts with your tax returns, and store them for 4-7 years.  Random receipts for printer toner from 3 years ago should not be floating around your office!!
Imagine how clean your desk will be, with all the Receipts managed and easily filed away!`

Productivity Challenge: My Desk is a Dumping Ground!

Last week, I asked professionals to share their Organizing Challenges.  The first response was:

“My desk!   Working from home, I’m so busy keeping the rest of the house organized, everything gets dumped on my desk! (thanks MG!)”

Has this happened to you?  You’re ready to get down to business, but your motivation and energy drain away as you face a desk cluttered with

  • Mail
  • School papers
  • Shoes / socks / clothing / dry cleaning
  • Legos (maybe that’s just me)
  • Receipts
  • Other people’s keys, wallet, phone
  • Office supplies or craft supplies
  • the list could go on and on …
Whether you work from home or in a more traditional office setting, trying to work at a cluttered desk can be a struggle.  Sometimes other people drop the stuff, and sometimes we ourselves do the cluttering.  Sound familiar?! Here’s what to do!
  1. When you sit down to work, spend the first 10 minutes of activity putting the dumped stuff AWAY, and the last 10 minutes putting your own stuff AWAY.  Most of us work better in uncluttered space, so that is a great place to start!   If you can do this every day, the piles will be progressively smaller, and you won’t need 10 minutes anymore!  Dedicate that small block of time at the start and the finish – seriously, set a timer if that helps!
  2. Make sure important things have a home.  For example, everyone needs a special place to put their cell phone, keys and wallet.  Establish a home for these important items NOT on your desk top.  Near it, perhaps, but not on it!
  3. Carve out “My Space” and “Public Space”, if you can.  For example, I recently rearranged my work space, and added shelves. I’ve moved the items that other people need to the shelves next to my work space instead of on the shelf over my work space.  In theory, this will cut down on interruptions and also encourage others to put things away!
  4. Establish containers for regular offenders, to direct stuff to other places:  An In-box for papers coming in; trash / recycling / shredding bins close at hand for papers going out; an errand bag for mail to mail or library books to return, items to drop off to other people, items to be returned to the store, etc.
  5. Act on your action items: In a client’s home office last week, most of the desk top was occupied by items that required action or an errand.  For goodness sake, ACT on your action items!  Invest an hour or two to take the actions or run the errands that will clear away those piles, then revel in the uncluttered space.
  6. Do you drop the stuff, or do other people?  If other people are the problem, set the example: Respect your own boundaries!  Clean off your desk and your own clutter, so the offending items are very noticeable when someone else drops them on your work space!

Keep you work space as sacred space!  Give it the respect it deserves, and expect others to do the same!

What Are You Afraid Of?

A coaching client emailed me this question:

Good Morning, Coach Colleen!
Just touching base…
Not very successful in meeting last weeks’ goals.

Today I am asking myself –
What am I afraid of… if I was to let go of something?
I know what papers I want to toss or move – but I am holding on to something.
Hopefully we can move past this block.

My response (edited for confidentiality and content):

“Hmmmm….. what ARE you afraid of?”

We set goals because we want to achieve a certain outcome. We’re also aware there may be side effects from achieving those goals.  The fear of those side effects weighs us down.

  • This client has boxes of old papers to review and purge. She wants to wrap up the paper project before starting another. She has done great work in many ways, but reviewing and purging the papers in these these last few boxes feels scary, like she might let go of something important.
  • I heard the story of a client secretly afraid of an empty in-box. It seemed that if the in-box was empty, she wouldn’t have any more excuses for not doing the other harder, more emotionally painful tasks she’s been putting off.
  • A friend is worried that she’ll lose too much weight and then she’ll have to buy new clothes and it will be expensive. So she doesn’t even start.
  • I alternate between wanting to be super-busy and then freaking out because I’m so busy and can’t do all the things I want to do.

We all have fears, it’s how we face them – what we do with them – that matters.  If you ask yourself what you’re afraid of, your mind might not produce an answer.  If you’re feeling blocked, you can instead ask yourself, “What’s the worst that can happen?”

As in, “I’m conflicted about a possible outcome. It could be good, and it could be scary. So what is the worst that can happen if I achieve this goal?”

Using the weight loss example, what’s the worst that can happen?

  • We feel some discomfort with being hungry or sore from exercising, until our body adjusts (we can survive that, no biggie).
  • We lose weight and then have to buy new clothes (not really so bad).
  • We lose so much weight we look like one of those crazy skeleton people on the news (not really very likely, now is it?).
  • We work out so much we look like those freaky body builders (also not too likely).
  • There is the unlikely event that losing weight could cause other health issues, but the list of health benefits outweigh the fears.

In the case of this client, what’s the worst that can happen if she let go of the wrong papers?

  • Someone may ask for the information (sometimes the answer is “No, I don’t have that paper anymore” and sometimes we have to go out and find the answer again. Neither is too scary).
  • She may forget about it (if the paper represents something important, she will be reminded in other ways).
  • Again, the benefits of completing this paper project, and freeing up space in her house and schedule exceed the fears.
    017

This afternoon I found this quote while working at a different client’s house, took a picture and texted it to my client. I loved her response:

“Wow, doing 365 things a year could make a person become ruthless [her goal is to objectively and ruthlessly purge her papers]! And then nothing will scare them!”

So face those fears, and make those lists. I bet what you fear isn’t so scary after all!

Powerful Questions to Build Decision Making Muscles

Recently, a coaching client asked for Powerful Questions to ask herself, to increase her motivation to get rid of paper clutter.  Below are questions I ask my clients (and myself!) as we work, to clarify the paper decision-making process.  In my experience, we all keep too much paper – I am rarely called to help someone because they got rid of too much!  Therefore, these questions will nudge you to purge your papers.

In addition, we often tackle our paper management in little pieces of time, and not big blocks. So we need to get in the organizing and purging zone regularly, and that takes practice!  These questions help you build your decision-making muscles, so you can hit that organizing / purging zone more quickly.  Here’s another tip – the questions can be tweaked and used to review every type of clutter!!

  • Now is not the time to ask Why?  As in “Why on earth did I keep this?”  Not why, then, but “What am I going to do right now?”
  • What can I do today to help future Me out? (Purge, unsubscribe, etc.)  What can I digitize, or subscribe to online?
  • If you keep paper for “Just In Case”, ask these:
    • Will anyone ever ask me for this piece of paper / information?  (If no, toss it.)
    • Does this information exist elsewhere?  (If yes, likely can toss it.)
    • Do I need to be the keeper of this information?  (No.  It’s called the internet.)
    • Is this information still correct, or pertinent?
    • If I purge this paper, what’s the worst that can happen?  Can I accept that “worst”?
    • Are all these papers worth the mess?
  • If you feel that “I can’t purge my papers because they will somehow change my life”, ask these:
    • Does this paper represent a reasonable expectation of myself or someone else?
    • Does my happiness really hinge on me having this piece of paper?  (No.)
    • Does this paper hold the secret to life? How likely is it that I hold the secrets of the universe in a dusty box of papers from 10 years ago?
    • Wouldn’t a better change come from clearing the clutter?
  • If you know you “Don’t want it, but don’t know what to do with it”, ask these:
    • Do I need to recycle it or shred it?
    • Does someone else need it more?  (Pass it on!)
  • If you keep paper for Nostalgia / Sentimentality / Guilt, ask these:
    • Who am I keeping this for?  (I ask this question of parents who keep every school paper their child ever brought home.  Because they are keeping those papers for themselves.  In 20 years, the kids will NOT want old boxes of school papers.)
    • Charitable donations / solicitations:
      • Do I make decisions regarding charitable giving based on mail or phone calls I receive?  (Personally?  No. So I can let those go.)
      • Did I ask for this information, or did someone else decide I need it?  Do I agree?  (Use this to review the unsolicited greeting cards / address labels / stickers that non-profit organizations send us so that we feel obliged to send them money.)
    • If I’m keeping these old papers in respect for a loved one who passed away, would they really want me struggling under all this clutter?
  • If these papers reminds me you that you need to do something, ask these:
    • What action does this paper represent?  (Go ahead and act, or at least add the task to your to-do list, then let the paper go.)
    • What nugget of information on this paper do I really need to keep?  (For example, a business card represents contact info for a person.  Log the info into your address book, either paper or digital, and then toss the card.)

So, next time you are struggling with piles of paper, keep some of these in mind. Make little index cards or post-its of the questions that resonate with you most, and stick them up where you can see them!  Let them be your mantra as you review your papers and let some go!

National Clean Off Your Desk Day and The 80/20 Rule

Now The Real Work Begins!  Now it’s time to get down to business, and what better way than with National Clean off Your pile of mailDesk Day, the second Monday of January!  Think about it – Cleaning Off Your Desk makes room for motivation, clarity and focus.  What are your Goals for this year:  Clear the clutter; get a handle on your money and finances; read more; stress less; do / get a better job?  It all starts with cleaning your desk!

Let me (re)-introduce you to the Pareto Principle, a.k.a. the 80/20 Rule.  The Pareto Principle says 80% of what you need is in 20% of what you have. Say it a couple times out loud until it sinks in.  The 80/20 rule applied to Paper management says we need about 20% of our papers, and we can probably get rid of the rest.  As an example, a client returning from a trip mentioned collecting 2 inches of mail from her mail box, and keeping… 4 items.  That’s it.

Let’s clear that cluttered 80%, so we can work on the 20% we need to act on and keep.

Here’s What To Do:

Grab a recycling bin and shredder, a letter opener, and pen and paper.

Grab the first pile of papers on your desk, and get started. With the most recent pile of mail, open it all.  Yes, really, Standing at your work space (standing is better), open it all.

  • Recycle immediately the ads.
  • Start piles for Common Categories, like these:
    • Bills to pay
    • Action Items (notes to send, reminders of phone calls to make, forms to complete and submit, etc)
    • Items to Read Later: magazines, articles
    • Errands to Run (coupons, receipts for returns, etc)
    • Papers To File
    • Tax Related Papers 2 years ago
    • Receipts
  • Recycle all the catalogs, but first tear off the back page off and set them aside.
  • Open every envelope, and toss / recycle / shred anything you don’t need for action or filing.  Recycle outside envelopes and inside inserts for your bills, etc.,
  • Set the bills-to-pay in their own pile, and the action items (same pile for me)
  • Grab a magazine holder and start a reading pile for your magazines and articles you plan to read later

Make some magic, and STOP MORE MAIL FROM COMING!

  • Low Tech: Call the 800 #s on the back page of the catalogs, and request to be removed from their mailing list.
  • Go To http://www.catalogchoice.org/, create an account and “Unsubscribe” from catalogs
  • Using your catalogchoice.org account, Get the Mail Stop app for your smart phone and get rid of unwanted mail in your mail box, too
  • Contact and create an account with the Direct Marketing Association,  http://www.dmachoice.org/, to get off of mailing lists and stop unsolicited mail
  • Another option is the Paper Karma app for your smart phone, to unsubscribe from mailing lists.
  • Unsubscribe from Magazines you no longer need or want, and digitize your subscriptions, so they come via email or on your IPad or Tablet.
  • Make a regular appointment to get to your reading pile (mine is early on Saturday morning for an hour or 2)

I’ve blogged extensively on setting up the actual Paper Management structure, the files and things, so please check out those, too, as you proceed to the next step:  http://colleencpo.wordpress.com/?s=paper+management

Here are related blogs, too, from past National Clean Off Your Desk Days:

You Can DO This!  Now get to work!

How to Cross “Organize My Medical Information” Off Your List!

October is National Organize Your Medical Information Month.  “Organize Medical Papers” is an often neglected task.  And if our health becomes an unexpected roller-coaster ride, we find ourselves struggling with our info AND a medical setback.

October is the right time to organize your medical info since employers offer their insurance enrollment period in November for the upcoming year.  Take this opportunity to look back and review, and look ahead and plan, and get those papers in order!

Remember, I’m a certified professional organizer, not a health care professional!   Always consult a medical professional for health-related questions.

Your Medical Information may include, but is not limited to:

  • ID numbers for your health insurance(s), prescription or dental plan, etc.
  • Lists of and information on current medications and supplements
  • Durable power of attorney for health care
  • Immunization or Medical records
  • Progress reports for various therapies
  • Information on acute (once in a while) or chronic (on-going) medical issues
  • Discharge instructions from current and past events
  • Correspondence with insurance companies re current and past treatment

First, purge old or obsolete information!  It’s clutter and can even be dangerous.  For example, keep only your updated prescription list, so no one confuses the old list for the new one.

You can purge papers if you won’t need them again, the information is no longer pertinent, or if the information exists elsewhere and you trust the keeper of the information.  For example, my three sons were delivered uneventfully by the same doctor at the same hospital.  That was more than 10 years ago, so I can confidently purge records from those events.  Remember, SHRED anything containing personal information!

Now that you have a better idea of what papers you have and what to keep, set up a system for your papers.

Make It Portable.

  • Purchase a 3 Ring Binder from your local office supply store for keeping medical information portable.
  • Take your medical binder to doctor appointments, so you have all the information you need at hand.
  • High Tech. The August edition of Woman’s Day offered suggestions to improve your health, and a handful of them were high tech:  Asking about on-line Patient Portals with your healthcare provider, or trying these mobile medical apps like PocketPharmacist or iTriage.

Make It Easy and Keep it Updated!

  • In the front of the binder, keep a list with your physician and other practitioner’s contact information.
  • Purchase a clear set of binder pockets, to help you divide up the important info within your binder. Assign pockets for categories such as:
    • Prescriptions and prescription information
    • Copies of the Durable Power of Attorney for Health Care and other pertinent directives
    • Discussion topics for your doctor, like recent lab / test / radiology reports, articles about new health care innovations, nutrition, supplements, etc., to discuss at your next appointment.
    • Pending insurance issues
    • This year’s paid medical bills and insurance EOB (Explanation of benefits)
    • Perhaps a folder per specialist, or per issue

Make it Personal:

  • Each family member may need their own binder! Thankfully, my family has unremarkable medical histories.  But every year, we fill out physical forms for my sons for school athletics and camp.  I keep a copy of each yearly physical form, to help complete the next one.  And as information changes, for example my son had oral surgery last December, I note that on my copy of the physical form.  The actual medical record exists with his doctors, but I now have an informal yet compete history for my own use.

Tell your family where the medical information binder is kept.

  • For example, our family recently faced some medical challenges, and my siblings and I all knew where my parent’s medical information binder was kept. Thankfully, everything went smoothly, but we were glad to have the information!

Spend a little time with your Medical Information now, and feel better all year long!

Swap 60 Minutes With Your Mail for 167 Worry-Free Hours! 

Does this sound familiar? mailbox-clip-art_436249

Piles of new / old / opened / mystery mail are scattered on flat surfaces all over your home.  Somewhere there’s a utility bill that might be due, and that reimbursement check from work is missing.  You are always vaguely worried about business falling through the cracks.

You’re not alone.  I worked with a client just last week with a similar challenge, and here’s how we cleaned up her surfaces, took care of this week’s mail and took care of business, in no time at all. Try it for yourself!

First, we collected the mail from the hall table, kitchen counter, dresser, mail box and desk top.  We wiped off a counter top, and made some space to get to work.

As we worked, I shared these truths with my client:

  1. The Pareto Principle (a.k.a. The 80/20 Rule)
    1. 80% of what we use in 20% of what we have.
    2. In business, the 80/20 rule says that 80% of our business comes from 20% of our clients.
    3. In a closet, the 80/20 rule says that if we own 10 pairs of pants, we wear the same 2 or 3 all the time.  In the kitchen, if we have 10 appliances, we use the same 2 or 3 every day.
    4. And if we get 10 pieces of mail today, we actually need to keep and act on 2 or 3.
  2. You will receive mail you don’t need and didn’t ask for.  Just because someone sent you something doesn’t mean you need it.
  3. Your daily mail is unlikely to contain anything truly urgent.
  4. Once you’re organized, maintenance takes no time at all.
  5. Sometimes a conscious effort once a week to work on mail all the way to completion is better than halfhearted dealings every day.

With these truths in mind, we tackled this week’s mail (and you can, too!):

  1. We pulled out ads and old newspapers, and recycled them.
  2. We pulled out magazines, confirmed my client actually wanted to read them, and created a reading pile.
  3. Next we opened up every envelope.  Why?
    1. Just like the book and cover analogy, you can’t judge your mail by the envelope.  For example, health insurance reimbursement checks look just like Explanation of Benefit envelopes.  In addition, credit card solicitations don’t always look personalized on the outside envelope, but can contain personal information inside and therefore require shredding.
    2. We can recycle parts of every mail item. For example, my client’s ComEd envelope contained a bill page, a return envelope, a “customer privacy info” sheet and an advertisement.  We kept only the bill page, as she pays her bill on-line and didn’t need the return envelope,
  4. Next, we put the “bills to pay” and the follow-up items in a small pile, for my client to complete when our session was over.  Since we had purged 80% of the papers, there were only 3 or 4 action items, which will take maybe 15 minutes to complete.
  5. We took out the recycling, shred a few papers containing personal info and filed the rest (just a few).
  6. Total elapsed time – 15 minutes. Done and Done.

For many of us, tackling the mail once a week is enough.  And by “tackling”, I mean taking our daily mail all the way from the mailbox to complete and filed.  This approach requires up to an our once a week, uninterrupted, but surely an hour of hard work and focus is worth the freedom from paper management tasks for the other 167 hours!  Give it a try!

Spring Cleaning For Your Financial House!

It is Spring!  This time of year, we all want to make changes and put things in order for this new season.  In addition, the tax deadline is next week, so let me recommend putting your Financial House in Order, too.    Here are 6 steps to get you started:

 

Shred your discarded personal papers.  Why Shred?  For safety sake.  You want to make it as difficult as possible for someone to commit a crime like identity theft against you.

If you don’t have a shredder, get one.  If (and when) you have a shredder, create the daily or weekly habit of shredding any un-needed paper with personal information on it.  If you tackle this job in little pieces regularly, you won’t amass big piles of papers to shred.  (Note – this is a great job for a helpful child!)

If you already have big piles of papers needing shred, keep an eye out in your community for free Shred Events.  If you just want to catch up and get it all shred at once, you have a couple of options.  The three big office supply stores, Office Max, Office Depot and Staples, all offer shredding services on a per pound basis.  In addition, you could contact ProShred or Shark Shredding , and make an make an appointment to shred all your papers at once.

 

Go on-line and request your Credit Report.  Why get your credit report?  Your credit report is a snap-shot of your financial identity.  Reviewing your credit report may uncover unresolved issues that are harming your credit score, or long-neglected credit cards or accounts that are still active.  Take time to review your report, and follow-up with any issues you notice.  And make a note in your calendar to do it again next year, too.

There are three reporting agencies, Equifax (www.equifax.com), Experian (www.experian.com) and Transunion (www.transunion.com).  I don’t know about other states, but I know that as an Illinois resident, I am entitled to a free credit report from each agency every year.

 

Buy a fireproof Safe.  If you don’t have a safe, invest in one.  Make sure it is fireproof and portable, and that you, your spouse, and one other person that doesn’t live in your house knows where the key is kept.  Store your irreplaceable vital records in there, like birth / sacramental / marriage and death certificates, insurance policies, passwords, Wills, car titles, etc.

 

If temptation to spend is great, physically “Freeze” your credit cards.   I heard this tip years ago, about a woman struggling with credit card debt actually freezing her credit cards in a large block of ice.  The idea was to make it complicated to use credit, so she would have a chance to consider and re-consider any purchase made with credit.  I don’t know if you want to really freeze your credit cards, but you could remove all but one from your wallet and put the rest away somewhere safe, like in the safe mentioned above or, well, a well-disguised block of ice.

 

Make sure your Beneficiary allocations are up-to-date.  Check your retirement accounts, insurance policies, etc., and make sure that the stated beneficiaries are who you want them to be.  Too often we forget this step, and our loved ones could lose out.

 

Add a “2014 Income Tax information” file to the front of your top file drawer, and make a habit of tossing charitable donation receipts and other pertinent tax info in there.  It will make tax time go more smoothly next year.

 

Add these steps to your Spring Cleaning plan this week, and get your Financial House in order, too.