aeykelbo Three things I would add:

1. Paper shredders are compact, cheap, and so useful when purging old files. I didn't think I needed one enough to make it worth buying, but it has turned out to be extremely helpful.

2. For electronic storage of files, try an online FREE service like Dropbox or Elephant Online. These sites have good security and are generally trusted; you can store a ton of digital documents online, and if somebody steals your computer (or you dump coffee on it) you can still retrieve the files. Still, I would only use them for non-critical documents that can't be used to steal your identity.

3. Digitize the really important documents (especially insurance documents, photos, identity documents, etc), transfer them to a disk or a chip, and store them in a third location. You don't realize how important this is until your house burns down :(

tcufrog I have been using the same home filing system for more than a decade to organize our family's files. It organizes the files into 4 categories and includes premade labels and blank colored labels. You can order extra labels as well. It covers medical, financial, legal, school, hobby, travel, and household papers. It's very easy to set up and is idiot proof. It takes me almost no time to put my hands on the papers i need because of the system. http://www.containerstore.com/shop/office/fileStorage/accessories?productId=10004236&N=74546

I second the Brother label maker. I don't use the labels for files because of the system mentioned above but I use it for everything else including sippy cups, spice bottles, toy bins, shelves, etc. The printer cartridges can get pricey but I've found them the cheapest at Sams Club and Costco.

One thing that wasn't mentioned is that hanging file folders aren't as cute but they are much more practical than Manila file folders which can fall down under other files in a filing box or cabinet.

Finally, if you have a busy multiperson household it's worth setting up a mailbox system with a mailbox for each member. We have ours hanging on the kitchen pantry door where no one misses it. My system also includes a bin for bills.

nanaanne Great article. Now that we are all refinancing property, it is so helpful to be able to easily find all those documents the loan companies want.

I have some suggestions concerning storing tax documents. I occasionally need to get out old tax supporting documents, so I organize tax and financial papers once a year, when I get my taxes together. First, I keep my filed tax returns (around 7 years) in my file cabinet. I also get a thin fan folder and put in it the supporting documents for my tax return and other papers I want to save from that year. I write the tax year in big numbers on the outside of the fan folder, and stick it in a big box that is labeled with the tax years that are in it. I keep that in the garage. Finally, I look through for receipts for things bought for or work done on my house, which I keep together in a file in the file cabinet. I sometimes need it for repairs, warranties, etc., and also save them in case I ever need them when I sell the house.

astraea Great article!!

bantiz99 This has been the most helpful article in getting me reenergized in organizing my papers. I particularly like the recommendation of the broad categories and later becoming more specific. Thanks so much. It's so hard to start organizing when you don't know how to start, now I have a starting point.

jojo132 One thing I've found helpful is to store receipts, manuals and guarantees for new gadgets and appliances in a plastic file in a kitchen drawer. I also keep a list of telephone numbers for repairmen in the same file. From time to time I have people stay to dog-sit so it's handy to have it all easily-accessible.

ciderhillfarm I use Quicken daily to record and split out all our personal and business transactions (cash, checks, and credit cards), making note on the receipt of the tax category (supplies, repairs, etc.), then file the receipts. Filing taxes is a breeze because all I need to do is print out category reports. I was audited by the state sales tax office a few years ago. Because I had good, easily accessible records it was not a problem.

Janis Nussbaum Senungetuk fine art photography You're very diligent. While I have good intentions, my follow through is sporadic.