I'm assuming you have all of your supplies handy and you're ready to tackle your paper headache. You don't need to get too complicated, just pick up the first piece of paper that needs to be filed and decide how you would categorize the piece of paper. If it's a receipt that you need to save for income tax purposes, name the file you create for this purpose something like "Income Taxes--Current Year." But, you will label the index tab on the folder "Reference 001." Put the receipt in the hanging folder, create your label, and put the folder in your filing cabinet.

Now let's talk about what you've just done. With the method of filing that I support, you label all of your reference files with the word "Reference" and then a number, starting with a 1 with two leading zeros. In the cross-reference index that you create, you put the label in one column and the name in another column. You can create such an index in a variety of ways. As I've suggested previously, the easiest way is to use the Taming the Paper Tiger software http://www.thepapertiger.com. If you're not inclined to purchase the software, you can use any database, spreadsheet, or word processing program to create a cross-reference index. Column or field headings in these programs would be "number" and "name" and if you wanted to get fancy, you could add "reference words" to help you search. You can also do this index manually, it just requires a lot more work each time you redo it.

So, this boils down to a five-step process for each new file that needs to be created. First, identify the subject of the paper needing to be filed; second, label the hanging file folder with the number (Reference XXX); third, file the piece of paper; fourth, put the hanging file folder in its sequential order in the file cabinet; fifth, enter the data for that file folder in your indexing program. I'm certainly not advocating that you put only one piece of paper in a folder-au contraire! You should make the subject of the folder specific enough so the folder doesn't get too large, but not too specific that only one sheet will ever populate the folder.

So, for instance, if the next sheet of paper is for insurance, you might want to create a category for each type of insurance that you carry, so those folders don't get too massive. I have named mine "Insurance-Life"; "Insurance-Car"; "Insurance-House"; "Insurance-Health." If you want to cross-reference these items, you could add additional headings for "Life Insurance," "Car Insurance," "House Insurance," and "Health Insurance." Sometimes even these folders get too large and have to be subdivided. I've subdivided our "Insurance-Health" folder so we now have one for my husband and one for me. Just remember, the more papers that accumulate in a folder, the more time you'll spend trying to find something in the folder later. When a folder becomes too thick, thick about subdividing into smaller categories.

If you already have folders for some of the items that you are filing, why not grab the folder and give it a number and name and add it to your new system? Your files don't need to be in any specific order by name or category, as long as you have created a cross-reference index to enable you to retrieve the information at a later date.

Now-keep filing those papers and creating new folders as needed. I'll check back with you next week to see how you're doing.