Expert: Jamie Novak - 7/28/2010

Question
OK I used to be super organized and kept all receipts organized in a file folder and when I received a bill in the mail, I would get my receipts and check off each item on the bill to ensure I was charged correctly.  I would then staple the receipts to the bills and file the bills away.  I stopped doing that about 4 years ago after I had 2 kids.  The receipts and bills are now piled up in a huge shopping bag.  I have credit card receipts, ATM receipts, credit card bills, utility bills, 401K statements and just a ton of papers in this bag.  I just do not know how to get back on track.  Do you recommened I go through everything?  Do I toss it all?  I have no idea where to start.  HELP! Thank you.

Answer
Hey Steph,

Thanks for the question. Boy can I relate to this!
Here's what I'm thinking.
#1 forget what you used to do :)
This is a new you in a new phase of your life and if you try to be what you were before you'll miss the good times now feeling too bad about what you coulda shoulda woulda done

#2 I'd toss it all in a box and label it "pre Aug. 2010"

#3 I'd start a new system beginning in August

I'll share my system with you. Since I used to do exactly what you described I'm guessing we might think alike which means this idea could work, ready...

A 13 slot expandable or accordion style file folder (do you know the one I mean?)

Label one slot per month and put the year on the front flap.

As statements, bills tubs, pay stubs, health benefit paperwork and so on come in slip them into the correct month.

I scan the statement and if something seems out of line I check the receipts.

So about those receipts, I have a pretty box meant to hold photos, I leave it by the front door. On my way in I stop and dump receipts, that means the newest one is always on top. If I need one I can find it.

I have a sticky note on the calendar and I move it forward the 1st of every month as a reminder to pull them all out and dump them in the correct file folder slot.

If you use an electronic calendar maybe you can make a recurring reminder.

The IRS suggests keeping 7 years of backup on hand. I slip the tax return in the 13th slot and file the folder in a big Rubbermaid tub. When I put the new year in I pull the oldest one out.

Because you are starting new you'll have to get 7 in there before you have an old one to pull.

Then I'd keep that box of pre 8/10 stuff with a big expiration date on it of 8/17.

And that's it!

What do you think?

You can see more at JamieNovak.com including the class by phone I give for f-r-e-e the 1st Wed. monthly, the online community and radio show. You can always send more questions in that way. I'd love to have you join the Aug. 4th call.

Let me know if you need anything else and good luck! I know you can do it.

PS Not that you asked but with two kids this tip might come in handy: pizza boxes. Large unused pizza boxes are perfect for storing the artwork. One per kid per year, name on the front, treasures inside they stack well and you'll have 18 when they head off to college LOL