Paperwork is one of the most challenging categories to organise. We need to keep certain documents, but most of us accumulate more than we actually need and don't know how to organise paperwork. If you've ever spent time looking for a certain piece of paper or document, you know how frustrating and stressful it feels.
How would it feel to be able to retrieve the paperwork you need quickly and easily, and not waste time searching for it?
Why is paperwork difficult to manage?
Many of us have a tendency to hold on to paperwork because it feels too important to discard and we worry that we might need it in the future. Privacy and security concerns mean we don’t always know how best to dispose of paperwork such as bank statements. Paperwork becomes outdated quickly and can accumulate quickly. Over time this can build up to the point that it takes up valuable storage space in our home.
It can be challenging to separate paperwork from other items. Life events such as a move, illness or a bereavement can lead to disorganisation. Becoming responsible for a loved one’s paperwork and finding it too difficult to make decisions about it. Knowing that further mess will be created can be off-putting, especially if the items have been there for a long time, and are dusty or have been stored in plastic bags which have since perished. Difficulty accessing areas like attics and under stairs, where paperwork has been stored can be physically challenging. A wish to avoid emotions and memories associated with items such as old photos or divorce papers.
Where do I start?
Gather Paperwork together - Try to get all of the paper items into one room or area for sorting. Make sure you have space and light to sort through your papers. An ironing board makes a great sorting area if you don’t have a table or can’t sit on the floor. Get rid of the bulk by removing cardboard folders, envelopes and leaflets. Keeping only what is needed reduces the volume and makes documents easier to sort and store.
Sort paperwork into categories - If you have different types of items and paperwork mixed up together, focus on one large category to separate paperwork from other items first.
Identify large categories such as Insurance (home, car, health etc), Financial (bank statements, pensions, investments, loans) Sentimental (children's art, birthday cards, postcards, used tickets, old passports) and Medical (appointment cards and letters, contact details, medication records).
Heather's tip: Once you've got your large categories, sort into the subcategories that make sense to you.
What if I feel overwhelmed by paperwork?
It is going to take time so start with small goals - one bag or drawer is progress.
Start with the items where the decisions are clearer. Make rules for yourself. For example, any magazines older than 3 months will go straight into the recycling bin.
Leave emotional items until last, because the decisions may be harder to make. Recognise that some items may bring emotions to the surface, and that is ok.
How do I decide what to keep?
If you’re unsure about a specific document, always check with a relevant professional such as financial adviser, before discarding
Bank statements and utility bills do not need to be kept for a specific length of time unless you are self-employed, need to complete a Self Assessment tax return, or have an ongoing dispute to resolve. Annual council tax statements are a useful form of identification, so keep the most recent one. If you only receive paper bank statements, keep the most recent year’s statements in case you apply for a loan or mortgage.
Salary-related items like your payslips, P60s and P45s can be useful if you need to prove your income for tax or credit reasons. HMRC suggests keeping payslips for at least 22 months after the end of the tax year they were issued in. P60s can be useful evidence of your National Insurance contributions.
Mortgage policy and statements -statements keep for up to seven years or at least three years after you sell your home.
Rental agreements - keep until you have received your deposit back from your landlord or letting agent
Insurance documents - keep while valid until date of expiry. You may wish to keep and compare last year’s costs, terms and conditions details with your new quote
Receipts for major purchases and home improvements - keep in case you need to use a warranty or make an insurance claim.
Sentimental items - this is a personal decision, but it is helpful to contain sentimental items to a limited space such as one box because this will keep the volume of items manageable. Each member of a household could then have their own memory box.
Miscellaneous - items that don't belong in any other category such as magazine clippings, lists and business cards, it helps to ask yourself, will I need this, can I find this information elsewhere and, am I likely to read this?
Documents to keep Indefinitely
Birth, Adoption, Marriage, death certificates
Divorce papers
Current Passports
Wills and living wills
Powers of attorney
House deeds
Military records
Retirement & pension plans
Business Records
Self Employed - you must keep all your financial records for at least 5 years after the 31 January submission deadline of the relevant tax year
Limited Company - you must keep records about the company itself and financial and accounting records. You must keep records for 6 years from the end of the last company financial year they relate to, or longer in certain circumstances.
Paper client records including invoices, must be stored‌ ‌securely‌ ‌in‌ ‌accordance‌ ‌with‌ ‌the‌ ‌European‌ ‌General‌ ‌Data‌ ‌Protection‌ ‌Regulation‌ ‌(GDPR) and you must destroy client information that is no longer needed.
Create an organising system that works for you
Once you’ve reduced the volume of paperwork, you’ll have a better idea of what storage system you need. Think about what works for you, so that you don’t waste time and money on a system that you won’t use.
If you choose to keep your paperwork in a filing cabinet or box, make sure your tabs and labels are easy to read and securely attached. Create a user friendly system for you - filing cabinets aren’t for everyone. For some people fewer categories will ensure that paperwork gets filed away, rather than trying to maintain a system with too many categories.
Heather's tip: Organising paperwork in a visual way such as with wall mounted magazine racks or open magazine files works well for some of my clients who have ADHD. Using clear flush cut folders or colour coded folders is another visual aid to being organised.
Keeping important documents safe
It may be worth investing in a small safe or lock box that is easily accessible in an emergency. This is a good option for more difficult to replace items such as passports and birth certificates.
For peace of mind, fire and waterproof document bags and concertina folder/document wallets are available from stationary suppliers and online.
Heather's tip: Make sure family members know where your important documents are kept
How to dispose of unwanted paperwork
Paperwork that contain your full names, addresses, phone numbers, account numbers, medical records, passwords, usernames and signatures should all be shredded before disposal to protect against identity fraud. Home shredding companies will supply you with confidential waste bags and collect them for shredding. Alternatively you can take bags to a facility yourself. Some companies such as Matthews Confidential Shredding Swansea, let you observe the shredding via a monitor.
Other paper items can go in your recycling, but check your local guidelines as some items such as Post-it notes can’t be recycled.
Paperwork Maintenance
When you add new items to a category, put them at the front to keep everything in date order. Check if the oldest one at the back can be disposed of, for example when your new home insurance papers arrive you can dispose of the old policy and papers. Carry out a maintenance declutter every once in a while to keep the volume of paper manageable.
A home shredder is a good idea for ongoing paperwork maintenance and to avoid a build up of items that need to be shredded.
A designated Action tray means you have somewhere to put your letters, bills and other items that can’t be filed away or dealt with immediately. You could try the ‘Sunday basket’ method, created by Lisa Woodruff from Organize 365.
Going digital
Going paperless is the main way of reducing the amount of paperwork coming into our homes. Unsubscribing to magazines and catalogues can really help here. Bank accounts, utility usage and investments can all be tracked online. If you feel uncertain of changing fully over to digital, you could access your accounts online and opt out of paper statements when you feel more confident.
Help is available to get your paperwork in order. If you’re interested in getting support to manage your paperwork, contact Heather to find out more
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