Overwhelmed by Paper? Pick One of These Two Filing Systems and Be Done Already

You may be surprised to learn that I am a paper person — well, maybe more of a hybrid. I take client notes in a notebook (which I then transfer to my CRM), I receive my credit card bill in the mail (recycling it after I’ve reviewed the charges), and my paper instruction manuals for major appliances are stored in that elusive cabinet above the refrigerator.

When it comes to filing, I have just a few often-accessed folders on my desk, we keep tax records and closing papers in a file box, and of course I have a Nokbox.

Where do you fall on the “paper person — hybrid — digital only” continuum? Do you save every bill, have scraps of paper everywhere, and love your printer? Or are you an e-bills, scan-all-documents, toss-the-instruction-manuals kind of person?

There is no one right way to file. The truth is that filing systems only work if they match your personality and your tolerance for paperwork. That’s why I recommend two very different approaches: micro-filing and macro-filing.

Assuming you’ve already purged the paperwork you don’t need (and checked retention guidelines with your accountant), here are your two options. Set a timer, pick a lane, and get started.

Option 1: Micro-filing

What it is: You divide your paperwork into very specific headings, with subcategories (i.e. Insurance → type of insurance → name of company; Medical & Dental → family member → medical, dental, mental health, etc.)*.

How to start: Grab a bunch of folders, a stack of stickies, and a Sharpie. Take out all of your papers and start categorizing and subcategorizing using the stickies. Once you’ve settled on your micro-categories, label your folders (preferably one-sided tabbed folders so you don’t have to track left, middle, and right tabs), and voila, you have a micro-filing system.

Best for: Someone who loves folders and categories, is detail-oriented, accesses papers somewhat regularly, and will maintain this level of detailed organization, such as small business owners, frequent insurance users, or anyone who needs quick document retrieval.

Myth: Detailed systems are the gold standard. In reality, complexity only works if you’ll maintain it.

Option 2: Macro-filing

What it is: You divide your paperwork into very broad categories (i.e. Health; Insurance; Assets, etc.). Categories can be even broader (i.e. Important*; Not as important; To read one day).

How to start: Grab a few boxes and do a macro-sort, disregarding the specific category and simply dividing into broader groups. Toss anything into the recycling bin that truly doesn’t need to be kept (paperwork for cars you no longer own, outdated insurance policies, duplicate documents, etc.).

Best for: Someone who just needs to know where important documents are in case of emergency, such as busy families, overwhelmed paper pilers, or anyone for whom micro-filing sounds like a torturous activity that will never ever ever happen and if it does, won't be maintained.

Myth: This is the wrong way to file. Macro-filing is absolutely better than nothing, especially when there’s a lot of recycling mixed in with your paperwork.

In Conclusion

At the end of the day, the best filing system isn’t the prettiest, the most detailed, or the one you saw on Instagram, it’s the one you’ll actually use. Whether you’re a color-coded micro-filer or a broad-category macro-sorter, the goal is simple: know what you have and be able to find what matters when you need it. Progress beats perfection every single time. So pick a lane, set a timer, and give your paperwork a little love. Your future self will thank you.

*When it comes to important papers, it is best to keep documents like birth certificates, marriage licenses, divorce decrees and passports in a safe, fire-proof location.