Out of Chaos an organizing newsletter
Thinking Ahead: Like a Paper Ninja
So much of what we do to be organized is pre-emptive. We put our insurance policy in a file called “Insurance” on the off chance we ever need to look at it. We put the new batteries where they belong so that we can find them when the flashlight runs out during a blackout. Doing things in an orderly, methodical way pays off—down the line. Whether it is having your act together for the accountant, or pulling together numbers for FEMA (heaven forbid) life is better when we have a system.
Over the years, I have helped many clients with all manner of file organization, from receipt filing to capital-improvement calculating, and I have come to a few conclusions:
• The fewer places you have to look for something, the better. You don’t want to have to go through your check registers and your credit cards statements. Which leads us to our next point…
• Be consistent in your method of payment. If, for example, you typically give to charities via check, then make it a point to only make donations via check. If you generally pay for prescriptions with your debit card, use that same card for co-pays in the doctor’s office. It will be easier to calculate those expenses if you only have to look through one set of statements. If you are renovating or otherwise improving your home, you will need those expenses when it comes time to sell. While it is important to have invoices, your actual payments are the easiest place to start, and if you are consistent in your method of payment, it will make your life a whole lot simpler.
• Separate your credit cards. I know that all of my work expenses are paid for on my business credit card, but all our after-school expenses are on my personal card statements. That makes life easier when I have to calculate my expenses at tax-time. Even if you don’t have a corporate or “business” credit card, have a separate card and account for your business expenses.
Being organized is really about thinking five moves ahead. While I am no chess-player, I am a Sagittarian, and I like to keep my eye on the target. Do we really need the plumber’s bills from 2012? Asking yourself why you are holding onto something and then backing up from that (was the plumbers visit routine maintenance or capital improvement?) will help you figure out how to label and store it.
Try to remember the endgame when you are confronting a pile of papers and ask yourself these 3-questions:
1) Why would I need it?
2) When would I need it?
3) Where will I look for it?
Master those 3-questions, and you will be well on your way to being a paper-ninja.