Chapter 1. Which documents should I keep and for how long?

The process of cleaning financial clutter requires you to identify what constitutes clutter before you formulate a plan for organizing. You can divide your financial clutter into two categories--paper and electronic--and address each category separately. 

Think of any document as having a life of its own. For example, a grocery receipt paid in cash dies very quickly after you transfer the amount to your budget, but a receipt for a major purchase like a refrigerator stays in your home appliances file for future use as necessary. A rule of thumb is to shred any receipts if you can get an electronic copy of it easily and at no cost; keep copies of documents needed for future use if you have to pay to get copies or copies are not easily accessible. 

 

How to

Most documents can be kept for one, three, or seven years or permanently, depending on its life cycle and its future need. Here is a list of examples you can use as a guide to sort your paper financial clutter as you make decisions to keep or shred.

 

 

Practice

Now you know what to keep and for how long. Think of paying it forward and discuss your organizing skills with a friend or a family member.

 

Congratulations! You can move on to Chapter 2. How do I organize permanent and temporary records?

To review the full module on Cleaning financial clutter, click here.