Piles for Miles
Let’s talk about something which seems to multiply on its own in many homes, paper! Paper is constantly moving into and out of our lives. Some of it we really need to keep, some papers are easily identified as junk, and then there are papers which we might need to keep, but we are just not sure. So, how do you make sense of it all? Keep reading to get all the details about what to keep and what’s safe to toss.
Receipts
Receipts for minor purchases can be thrown away as soon as they are reconciled on your credit card or bank statement. There is no need to keep every receipt for every purchase you make unless there is the chance you will return something. Feel free to toss receipts immediately. If you like to keep them just in case an issue comes up, the general rule is to keep them no longer than 3 months.
The same is true for ATM and bank deposit slips as well as paid citations. You can toss utility bills, too, unless they are a tax deductible business expense. Then you need to keep them for about 7 years.
Statements
Bank and credit card statements can usually be discarded after a year, if you keep them in paper form at all. Most of the time, they are accessible on the web. If you’d like to keep a digital copy on your computer or external hard drive, it can be discarded after a year. Once deposits, debits, charges, and payments are checked for accuracy, the statement is no longer needed.
Here are more items you can discard after a year:
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check registers
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paycheck stubs
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cancelled checks
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mortgage statements
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quarterly investment statements
What should you be keeping?
While there’s a lot of paper you don’t need to have in your home, there are some documents you should keep for at least 7 years. They include:
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annual bank statements
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W-2 and 1099 forms
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receipts for tax purposes (meals, utilities, donations, deductible expenses, etc.)
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records of satisfied loans
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disability records
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unemployment income stubs
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medical bills and claims
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cancelled insurance policies
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records of sold stocks
The Really Important Files
Here is a list of the really important paperwork you should keep FOREVER! Yes, forever. Don’t throw these away because you may need them again and replacement documents may be costly and difficult to obtain.
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tax returns
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deeds, mortgages, and bills of sale
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investment statements for each year
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legal documents and important IDs
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birth certificate
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death certificate
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divorce decree
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adoption papers
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marriage license
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military discharge papers
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social security card
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passport
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life insurance policy
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home improvement documentation & receipts (needed to offset taxes on the appreciation of your home)
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expensive purchase receipts (fine art, jewelry, major appliances, furniture)
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wills and Power of Attorney designations
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beneficiary directions
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real estate certificates
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car titles
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current insurance policies
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medical records
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education records
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pension/retirement plan records
To Shred or Not To Shred?
If you look online about shredding documents, most websites say to shred everything with personal information written on it. This includes the latest junk mail coupons you picked up at the mailbox.
The truth is that your name and address are public record. If the paper has only these two pieces of information, it may not need to be shredded. However, if there is a barcode or other information about you on the paper, then you should shred it. Barcodes may contain identifying information like account numbers.
Junk mail, such as credit card offers, may appear innocent, but the last thing you want is for a criminal to be able to apply for credit in your name. The best way to deal with junk mail is to stop it from the start. To get less junk mail, visit the Federal Trade Commission (FTC’s) web page on “Stopping Unsolicited Mail, Phone Calls, and Email.”
One last thought about shredded paper. Many times it is not recyclable because it causes problems with mechanical sorting processes. Shredding only the paper with truly confidential information and recycling the rest is the most environmentally-friendly option.
The best way to protect yourself from identity theft and lessen the amount of paperwork stored in your home is to select paperless options when receiving your bills and statements. Keeping this information online allows you to access it when needed and not worry about it otherwise.
More Solutions For You
Here’s more to help you get organized:
Download the Refreshingly Candid Guide to Keeping Paperwork
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