By Lynda Spence, Family & Consumer Sciences Extension Agent at UF/IFAS Extension-Marion County
Reviewed by Martie Gillen, PhD, Department of Family, Youth, and Community Sciences, University of Florida
March 23 is National Organize Your Home Office Day
GETTING ORGANIZED
How many times have you cried out in frustration “Where did I put that paper?” or “I can’t find the receipt!” If you’re like me, more than once. If you’re thinking 2014 is your year to get your act together, consider this: Organizing your home office feels good and it’s key to financial success.
Being organized helps you keep a finger on your financial pulse. It will reduce stress, save time, and paint a clear financial picture for you. Here are some basic tips and links to help you “get your act together.” Take it from a “messy desk person”: this stuff really works!
DESIGNATE A SPACE
Designate an area in your home for taking care of household business. If possible, don’t put this area in the bedroom—you want to associate that space with rest, not work! The area you pick should accommodate everything from bill paying to reviewing pet shot records.
Take care to make this area a desirable place to be. Good lighting and ample surface space are essential. The work space is important, but so is the way you organize your records. As you contemplate what your system will look like, keep in mind the importance of labeling, access and security.
DEVELOP YOUR SYSTEM
Develop a system that makes sense to you. There are files you will need to get to often, and then there are files you may rarely need, but aren’t ready to throw away. For this reason, organize by convenience. For instance, you might try keeping your bills at your designated work space and your permanent files tucked away in a closet or filing cabinet. Because the key is to pay bills on time, decide how you will organize them. By category? Payee? Due date? There’s no one right or wrong way–just the best way for you.
In general, you can think of your records in terms of current documents and permanent files. Current documents include insurance policies, health records, warranties, and pet records. You could organize these alphabetically, by subject matter, by person, by event, etc. Simply decide what makes the most sense for you. Permanent files are those that generally either will remain unchanged (like birth certificates) or will change minimally (like household inventories).
For a checklist of common important documents, check out Family Records, from UF-IFAS.
MAINTAIN YOUR FILES
Now that you are motivated to organize, remember that maintaining your system is just as important as setting it up. To keep papers from piling up and getting out of hand, consider opening your mail close to the recycle bin or shredder. This is one sure-fire way to keep papers to a minimum.
Certain records should be reviewed and updated from time to time. At a minimum, go through your files annually and discard outdated or unneeded items. Tax time is a convenient time to do this because you already are going through your records in order to complete your tax return. Doing this helps to tame the paper monster and keep the filing cabinets from overflowing.
You may be tempted to transfer some of your records to digital format. Remember, digital files keep paper to a minimum, but may not be adequate in and of themselves. In many cases, it’s necessary to have a paper version.
For a more complete listing of what to keep, for how long, and more, refer to IRS Publication #552, Record Keeping for Individuals.
Organizing your records and setting up a system for bill paying is the first step toward becoming financially successful. It actually saves you money in the long run. It will help you to locate warranties or receipts when something goes on the blink, to pay your bills on time, and to avoid the higher interest rates that go hand-in-hand with late payments. Organizing your records makes sense and cents, right?
(Photo credit: Better work flow: get organized by Jodimichelle. CC BY 2.0.)
0
