Yes, paper files are still a thing. And like most things, we’ve got a system for it.

This blog post will probably come as a surprise to most of you: it’s about paper filing systems.

I write this post with great trepidation. I’ve received feedback from people who were surprised to hear that paper filing systems are still in use, or even necessary.

Here is my disclaimer: this blog post is not for everyone. That being said, I am sharing it because I know how many people’s lives this filing system has changed for the better. So for those of you who find yourselves drowning in piles of paperwork, this post is for you.

This system is very specific. Once you understand the basis of the system, you can customize it to fit your needs.

No More Mail Mountains

It all starts with the mail. The trick is to open and sort everything as soon as you get it. Sounds overwhelming? Don’t worry: this system will take all the frustration out of dealing with mail so that you never have to deal with mounds of mail again.

You are going to need 3 stackable letter trays. I prefer the landscape orientation letter tray like this one here.

Mesh Stacking Letter Tray with Wide Side Opening White - Made By Design™

Label the three tiers as follows:

To Do
To Pay
To File

The order is specific; “To File” should be on the bottom because you are going to be referencing it the least. “To Do” is the most urgent and will also be referenced the most, so it should go on top. If you need another category, go ahead and add another tray to the stack.

You will also need:

a stapler
a letter opener*
paperclips

Once you get your mail, open it right away. Staple or paperclip loose pages together and sort it, placing each item directly into the tray it belongs in. Throw any spam straight into the garbage.

* a beautiful letter opener will totally elevate a mundane and otherwise boring experience

And Now, We File.

Once your “To File” papers are stacked in their tray, we can get to the actual filing.

You’ll need the following:

You will also need a file box or cabinet. Here are some options:

We are going to begin by dividing your files into two categories: Annual Files and “Forever” Files.

Annual Files

Annual files are things that are relevant to the current year. This includes things like phone bills, electricity bills, tax documents, bank statements, school information or class contact lists, paystubs, ect. Some of your annual files will be thrown out at the end of the year (this is up to you). Anything tax-related or that may have long-term importance will be stored away in a file storage box or banker box for 7 years.

The labels on your annual files should look like this :

Account Name - Account # (Year)

For example:

Chase Bank - Checking #1234 (2022)

If I am filing for multiple family members or properties under one filing system, I also include the specific person or address that the account is filed under. For example:

Chase Bank - Checking #1234 (2022)
Jane Doe

ConEd #857348763 (2022)
7583 Spruce Lane

For the actual filing, I use a manila folder inside a hanging file folder and only label the manila file. I do this because manila folders are much cheaper and easier to switch out than hanging file folders.

In your file cabinet, you should ONLY store the current year's annual files (and whatever year you are still filing taxes for). Every December, create new files for the upcoming year. It’s easy once you’ve already done it once: just base it off of your already-existing files from the previous year and change the dates.

As soon as you finish filing taxes for a specific year, it’s time to sort through your annual files, decide what can be tossed, and what needs to be kept in storage. Move the files you want to keep into a file storage box or a banker box. Since you only need to keep files for 7 years, once you add a year you can remove the oldest year in your box. For example, after I file taxes and move my 2021 files to storage, I will discard or shred all my files from 2014.

The goal here is to only have current, pertinent files in your filing cabinet so anything relevant and important is easily accessible and at your fingertips.

Forever Files

Forever files, as you might have deduced from the name, are things you want to keep for forever. That being said, forever is a very long time so these files aren’t really going to be saved for all eternity. They are simply items that you don’t want to misplace for the foreseeable future.

Here are a couple of examples of forever files.

Will and Testament
Medical records
Receipts for large purchases
Warranties and manuals

I file my forever files in hanging file folders because I know I will probably rarely be switching these ones out.

The big question of forever files is, when do you get rid of them?

Whenever you open a forever file to grab or add something, take a peek and see what's already living in the file. Chances are you probably haven’t looked at that file in a while and some of its contents may no longer be relevant. Once you get into this habit, it will be easier to upkeep.

It’s important to put your annual files and forever files in different-colored hanging file folders. Your brain should never have to think twice about which files are which, or which area you should put your files back into when you are done with them.

If you have a lot of files, annual files and forever files should also go in different drawers. Personally, I prefer to have my annual files in the top drawer so they are easier to reach and forever files in a lower drawer, since I access them less often.

Make it Your Own

I know this system is intense. If you’ve gotten this far, it’s likely you think I am completely insane (LOL) (but also, not LOL). But now that you’ve gotten to this point and you actually (hopefully) understand how the overall system works and how it can benefit you, you can tailor it to fit your needs.

Here are a couple of examples of how I’ve tweaked the system to work for me:

I don’t have a 3-tier letter tray. I have a single tray, and all loose paperwork goes in it. Anything I am currently working on I just pile on my desk. However, once I have a family with more bills and more mail, I know I will need more than a single tray.
I also don’t have any annual files - I only have forever files. Almost everything is paperless, so I pay all my bills online and get email confirmations and I don’t need to keep hard copies.
For my tax documents, if I have paper copies, I divide them by year and keep ‘em in manila folders, but with the rest of my forever files.

I’d love to hear your thoughts! Do you find this system helpful? What tweaks have you made (or will you make)? Do you keep paper files at all, or do you still think this is for Baby Boomers only?

Let me know, and happy filing!

Xx Chan

The No-Fail Filing System