Organize Your Personal Finances ...In No Time

A Quick Lesson in Categorizing

Now that you have your Frequent Files group, you can apply a greater level of order by creating categories within the group. But first, some background information. There are three principles I want you to understand about categorization.

Categorizing Is Better Than Alphabetizing

This concept makes many of my clients exclaim, “Why didn't I think of that? That's so obvious, and such an improvement!” Simply put: It's filing by category instead of alphabetically. Look at Figure 5.4 for a comparison. The beauty of categorizing instead of alphabetizing is that it relies on your logic, not your memory.

Figure 5.4. When filing, the alphabet can't do it all. For a really useful system, use categories such as those in ...