The promise of a paperless society with the advent of the computer has not proven out. On average, Americans use about 700 pounds of paper products per year-- more, per capita, than ever before. Despite efforts, there is little hope that this will change any time soon.
Do we really need to use so much paper? And what about all the paper we save because we fear throwing out important records.
Getting out from under all that paper can be a real freeing experience and can make it a lot easier to file away and retrieve the paper records we do need to keep.
Here are a few guidelines for what to keep and what can be tossed (shredded and recycled)
- Cancelled checks or paper images of your checks: shred and discard, but keep those related to your taxes, business expenses, and housing and mortgage payments. Save these for at least 6 years.
- Utility bills: Throw away those not needed for business or tax purposes.
- Personal Tax records: Save these for at least 6 years.
- Business records for tax purposes: Archive these indefinitely.
- Insurance policies: Keep your policy and updates for the life of your policy. Insurance claims records may be needed for tax purposes, save these for at least 6 years.
- Personal documents such as (birth, marriage and death certificates, diplomas, certifications, military records, work permits, passports, divorce decrees etc: Store in a fire safe or safe deposit box indefinitely.
- Mortgage papers, deeds, titles, and abstracts to real property such as your house, cabin or commercial property: Store in a fire safe or safe deposit box indefinitely.
- Wills, power of attorney documents, and other estate-planning documents: Keep the most current copy in a fire safe, safe deposit box or with your attorney.
- Stock certificates and other investment certificates and documents: Store in fire safe of safe deposit box. Save brokerage records for tax calculations at the time of sale.
- Medical records, prescriptions, medical power of attorney and any end-of-life directives: Save pertinent medical records and a list of current medications as well as clinics and doctors you have used where they can be easily accessed in an emergency. Current copies of your medical power of attorney and end-of-life directives should be given to appropriate family members.
- Receipts, warranties, guarantees and manuals for large and small appliances, tools, electronics etc: Keep as long as you own the item.
Staying organize is not easy, nor is winnowing out what you don't need to be discarded. Some records can be kept electronically, like downloaded bank records (be sure these are backed up). Most other records you will want to save hard copies.
January is a good month to get going with cleaning out files as you will want to start collecting the documents needed for tax time. April will be less stressful if you can get much of the work done early. Reducing the amount of space you need to store all that paper will be an added bonus!!





