File folders with metal filing tabs

Life is complicated. We have lots of gadgets, gizmos, and technology to assist us, but many of us are still struggling with day-to-day papers such as coupons, medical forms, receipts, and reference materials. In other words, we need a filing system! But many people are perplexed as to how to create a filing system.

I frequently get questions from people needing help with creating a filing system to organize the mounds of paperwork most of us deal with daily. When I named my blog Managing Modern Life®, I definitely had these people in mind.

Regarding papers, we can immediately recycle or shred some, while others are essential in the short term for action. The papers that tend to pile up and give us the most trouble are those we maintain for reference – whether for legal or financial reasons or our personal interest.

The first step is identifying what to keep and for how long. The second is determining how to organize papers for neat storage and easy retrieval. The traditional way to organize papers is in vertical files; it’s not the only way, but it will require the least amount of effort for our purposes. So, let’s get started!

Gather Your Filing System Supplies

You’ll want a file box, drawer, cabinet, crate, or another container for about 50 hanging file folders. You can buy file containers that accommodate both letter and legal-sized files. However, if yours only fits one or the other, buy the hanging file size that matches your file box.

Decide on a Ready-Made Filing Kit or Do-It-Yourself Filing System

Three popular ready-mades that I like a lot are Filing JOYS and Freedom Filer. Each of these systems has pre-created color-coded tabs. You merely have to learn a system’s naming conventions and apply them to your way of thinking.

  • JOYS is one of my favorites! It’s attractive and robust. Plus, you can use it with hanging files of any color.
  • Freedom Filer is also an excellent filing system. They designed it specifically to enable users to set up files and maintain them in the future.

For the Do-It-Yourself filing system, you’ll create your own labels

This is not difficult at all; it’s just a little more time-consuming. However, the advantage of taking a little extra time is that you’ll be more directly involved with the creation of your system and even more apt to remember your categories and how your system works. For your filing system, I encourage you to think in broad terms. My motto is “the simpler, the better” when it comes to naming your files. Don’t think, “Volvo Wagon”; think, “Car” instead. However, as Albert Einstein said, “Everything should be as simple as possible, but no simpler.” That means that you want to create file names that are just specific and clear enough to identify the contents at a glance, but you don’t want to make your categories so narrow that each folder holds only one or two pages.

Although every household has a few unique situations, the basic labels needed for filing systems categories and subcategories include:

  • Bank – If you have more than one bank account, clarify which account it is by labeling it with the bank name and/or the last few digits of the account number.
  • Bills – Paid invoices that might need to be saved; not every bill needs to be preserved.
  • Charity – Receipts from monetary or in-kind donations (like Goodwill drop-offs)
  • Credit – Credit Scores, Credit Reports, Credit Card Agreements
  • Expenses
  • Family:
    • Dad – General (professional reference and resumes, activities, hobbies)
    • Dad – Medical
    • First Child  (name) – General (school, activities, hobbies)
    • First Child – Medical
    • Second Child – (name) – General (school, activities, hobbies)
    • Second Child – Medical
    • (Repeat this folder hierarchy for each additional child.)
  • Financials – IRA, Social Security, Investments (general, 529s, etc.)
  • Household Maintenance
  • Household – Other – e.g., Décor samples, Improvement plans
  • Income
  • Insurance – Sub-categorize folder labels so that you know immediately what’s in each folder. For example:
    • Car Insurance
    • Health + Life Insurance
    • Home Insurance
  • Keepsakes/Memorabilia
  • Pets – Pedigree records, Veterinary records
  • Photos – School photos, Photos that others give you
  • Tax Documents – 2013, 2014, 2015, 2016 (one file per year)
  • Vital Documents – Wills, Passports, Certificates, Property Titles
  • Vital Information – Social Security and ID Numbers, Digital Passwords
  • Whimsy (or whatever name suits you) – Special interest categories specific to you or your family, like Gardening, Wines or Vacations. These are limited only by your family’s activities and interests. You may group them into manila folders inside your hanging files or start a new hanging file for each topic.

For more information, check out my friend and organizing colleague Julie Bestry’s post,  Do I Have to Keep This Piece of Paper?

Remember that guidelines are merely a starting point. Each filing system will vary somewhat, depending on several factors specific to the complexities of your individual financial, medical, and legal situation, as well as your personal interests and activities. However, this outline will give you the confidence to take control of the papers in your own home office or household.


Want more organization + inspiration? Continue reading Managing Modern Life® articles.