To complete the circle after my last post, now here’s a list of things that you definitely want to hold on to while you’re de-cluttering and organizing for the new year.
- Keep your tax returns and all of the paperwork that supports them for 7 years
- Keep your credit card receipts to compare to your statements, then shred them. Keep statements for a few months, but for 7 years if charges are related to your tax returns
- If you’re a home owner, keep all records of permanent improvements that you make to your home
- Keep your pay stubs until you have your W-2. You can toss them after that-be sure to shred them!
- Every year go through your household bills and shred the ones that have been paid. Keep any receipts that you might have for large purchases. You may need them for insurance purposes
- Keep your bank statements for one year then shred them. Keep any canceled checks that are related to home improvements, taxes, business expenses or your mortgage
If you’re smart you’ll set up files for the above items to make it easy on yourself. When it comes time to review receipts or toss the pay stubs, you’ll have them all in one spot instead of having to look for them. This streamlines your monthly and annual processes and saves you a lot of time in the long run.