If the paper monster has you buried under an avalanche of receipts, bank statements, ATM slips, investment records, paycheck stubs, and bills, then read on. The good news is you can probably throw most of it away without worry. But before you fire up the shredder, you need to know what to toss, and what to keep—and for how long.
Step No. 1: Toss All You Can
Monthly. 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.
Yearly. 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-year statement.
