what documents to keep
If you haven’t yet made the relocate to digital monetary statements, you likely are awash in documentation. Hanging on to financial paperwork for several years and years can take a great deal of space. Instead, eliminate much of your paperwork by recognizing how long you need to keep it.

You could be shocked to find you need to keep it for much less time than you thought.

Tax Documents

All tax documents must be kept for 7 years since that’s the length of time the IRS has to audit your returns. You’ll want to keep the following:

  • federal return,

  • state return,

  • year end bank statement,

  • year end investing statement,

  • year end retirement statement,

  • year end student loan statement,

  • W-2 statements,

  • 1098 statement for interest paid on your mortgage, and

  • other paperwork necessary to back up the credibility of your tax filing

Life Long Documents

Some files you need to hold for life or until they expire. These consist of:

  • will and trust documents,

  • social security cards,

  • birth certificates,

  • marriage licenses,

  • life insurance policies,

  • retirement documents

Paperwork You Can Toss on a Monthly Basis

Some documentation you can toss monthly after you foot the bill. This includes:

  • utility statements,

  • bank statements (after you reconcile your checkbook),

  • credit card statements

Other products you can toss two times a year. These consist of:

  • house or tenant’s insurance coverage statements,

  • auto insurance statements

How to Keep Paper Clutter at Bay

Switch to Electronic Statements

The finest means to keep paper mess at bay is to go digital. Most companies now offer you the opportunity to get electronic statements rather of paper statements. Some banks encourage this by charging you a low cost such as $3 a month to get a paper statement.

This does not sound like much, however even if only 3 companies are charging you each month for a paper statement, you are still paying over $100 a year for the advantage of getting documentation in the mail that you then need to submit.

File and Purge Often

If you really like a paper copy as opposed to an electronic copy, see to it to get rid of all of the documents you can. If you’ve actually paid your regular month-to-month costs, there’s no need to keep the statement. With routine declaring and purging, you can keep your paper clutter to a minimum.

How do you remain on top of your documents?