1 Create subcategories for each box except Action, which should now be empty. Start with the Personal box, for example. Pick a paper from the box, maybe a picture of a living room you've clipped for decorating inspiration. Write the subcategory Decorating on a file folder in pencil. Put the clipping inside and set aside the folder. Repeat the system with each paper in the box, creating new folders as needed. Later, when you're confident of your subcategories, label the folders permanently.
2 Sort the file folder subcategories into groups. For instance, Decorating , Gardening and Recipes file folders can all go into a hanging file labelled Home.
3 Alphabetize the hanging files and return them and the folders to the storage box.
4 Repeat the system with paper in the remaining boxes.
Image courtesy of Tarkett Residential
But imagine that you’ve found the perfect home, you’re ready to apply for a loan and when the lender asks for that W2 and you can’t find it. Maybe you filed it in the wrong place, or maybe your accountant forgot to return it to you or worse yet, maybe you lost it. You eventually accept that you’re not going to find it. Now what? You have to track down a copy. All the while your application is on hold and with each day that passes, someone else could be bidding on your home. Let’s make sure this doesn’t happen.