Stash or Trash?: Get a grip on important docs
Almost every day we receive money-related documents that we need to decide whether to keep or throw away. The wave of paper and electronic statements, bills, and receipts from purchases and ATM withdrawals may have you feeling like you're drowning in documents. Knowing what to keep and what to discard will save you a pile of trouble... literally.
You probably don't need the receipt for that sandwich you bought a year ago, but there are some items you should keep. Here's a look at how long to hold on to some of those important docs:
| Document | Hold on for |
| Credit card receipts and statements | 45 days to 7 years |
| Paycheck stubs | 1 year |
| Bills | 1 year to permanently |
| Loan statements | until repaid |
| Tax returns | 7 years |
| IRA contributions | permanently |
| Brokerage statements | until securities are sold |
| Retirement/savings statements | 1 year to permanently |
| Mortgage | until repaid |
| Deeds | permanently |
| Major purchase receipts | until warranty expires |
Would you want the cable guy to see your Social Security number and savings account number lying on your desk? Knowing where and how to store documents could keep you from being a victim of identify theft. Check out these options:
- Personal safes can be purchased from almost any office supply store for $30-$200.
- Safety deposit boxes can be rented from most financial institutionsfor a low monthly fee. They are less convenient to access than a personal safe, so use them for items you won't need frequently.
- File cabinets, storage boxes, and expandable folders are good places to keep things like bills and statements organized and out of sight.
- "Paperless" is the way to go these days. Many companies and financial institutions allow you to view electronic statements (e-statements) online. For backup, save your statements in your email account and on your hard drive or a removable drive for safekeeping.
- Make sure your passwords are protected.
Anything that has your name, address, Social Security number, or any account numbers should be destroyed, rather than just tossed in the garbage. A shredding machine is the easiest way to destroy information--a basic five- or six-sheet shredder can cost between $15 and $40. Crosscut or high-security shredders that slice documents into smaller pieces are more expensive, but may keep you safer from identity thieves. Companies such as Shred-it sponsor free shredding in cities across the country (visit shredit.com/community.asp to find an event near you).
Twenty-three percent of adults say they pay bills late (and thus incur fees) because they lose the bill. For the record, organization adds up to savings. Give it a try.
Sources: nea.org; pueblo.gsa.gov; bankrate.com; onlineorganizing.com; washingtonpost.com
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