If the paper monster has you buried under an avalanche of receipts, bank statements, ATM slips, investment records, paycheck stubs, and bills—the good news is you can probably throw most of it away without worry when you have a simple record keeping routine.
But before you fire up the shredder, you need to know what to keep and for how long.
Toss all you can
Once you have recorded the amounts and reconciled your bank and credit card statements, you can shred ATM receipts, bank deposit slips, credit card receipts and sales receipts at the end of each month.
Exception: Keep receipts for purchases that may be tax deductible, those that involve a warranty and any item whose replacement cost exceeds the deductible on your homeowners’ or renters’ insurance.
Once you receive and reconcile your W-2 against your final pay stub you can toss your paycheck stubs for the year, along with monthly credit-card and mortgage statements, phone and utility bills and quarterly and monthly investment reports.
The same goes for other statements that detail the entire year’s activity on the final end-of-the-year statement.