We talk about the documents you need to save, but there's plenty that can be thrown away! (I mean recycle or shred first if possible.) Let's tackle different categories of paperwork:
Monthly Bills: This includes utilities (electricity, gas, trash, phone), mortgage, car payments, etc. If you get a monthly bill, it looks ok and you have paid it, you shouldn't have to keep the previous month. If there is an issue, then keep the bill until the problem is resolved. These types of bills are usually online so you can access an older bill if necessary. If you are renting, keep a record of payments so you and the landlord/property manager are on the same page. Never pay a bill in cash! This is a recipe for disaster.
Medical Bills: Let's just say that medical billing can still be a fiasco. Only recently have medical bills been accessible online. If you have paid a bill and everything looks ok, you can toss the bill. If you feel that the bill amount is incorrect, or your payment was applied incorrectly - these are very common issues that can take months if not years to resolve. If you have paid a bill and everything looks ok, you can toss the bill. However, based on personal experience, if you have any issue with a bill, keep it - along with detailed notes of your payment amount, dates, customer service conversations. It is a shame that you have to approach medical bills like you are going into battle, but that's the way it can be at times.
Taxes: Per the IRS, you only need to keep personal tax returns for 3 years. If you have a loss claim, you need to keep it for 7 years. Business tax returns may need to be kept indefinitely depending on the business status. Keep all supporting records in case of an audit.
The Weird: Do I still own this thing? Have I switched my service to another company? Is the receipt/warranty still valid? Is it junk mail? Is it a magazine or newspaper? Will anyone else find value in it? Would anyone else just throw it away?
Think Current! You don't want to sift through file cabinets of paperwork history. Don't assume your loved ones have the time or energy to do it for you.
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