Documents and paperwork everywhere…

Sorting out paperwork, and in particular financial documents, often feels like an irritating rash — better to pretend it's not there, because just the thought of tackling it may leave you red with anguish. And, even when the paperwork starts to overflow and we have no choice but to deal with it, what usually happens? We start, but as soon as we hear our favorite TV show start in the background, we put it away to do later…

The importance of keeping paperwork in order is obvious: it's the basis for the start of every process of financial planning or improvement. It's easier and quicker to find documents when needed. When paperwork is tidy, we have more order in our heads. A mass of untidy documents might cause our inheritors a lot of work one day and possible financial losses. When paperwork is tidy, it's easier to see problems. (What? I've been paying 15 shekels per month for the last two years on an unused cellphone? What? I didn't know we had the right to extend the house on this property?)

Even though we live in the age of Internet and email, much paperwork still finds its way into our lives and homes. Some rare people do manage to live almost paperless lives — they get most of their accounts and reports by email, whatever arrives by slow post is scanned into the computer, and the original is thrown away. But even with this method, a logical filing system is required.

Below is a table which contains the basic files (real or virtual) required in every home.

But first, a few tips:

• File once a week — don't let paperwork accumulate.
• Scan important documents and keep copies in two different places.
• Add a contents page as the first page of every file.
• Use dividers to separate subjects in the file.
• If you cannot do it alone, get help from a professional document sorting service, at least to do the initial order.