Spring is a perfect time to purge unnecessary documents from your files. The extra space in file cabinets is a welcome relief from cramped, cuticle -tearing folders. When done annually, clearing out files doesn’t take much time.
You can think about documents in terms of storage time and storage location.
There are four lengths of storage time:
- A year or less
- Length of ownership of an item
- Seven years
- Indefinitely
I recommend three storage locations:
- Active Files – Keep in a place where you can access them readily such as a file drawer near where you pay bills;
- Storage files – Keep in a more distant location, such as the basement or an unused bedroom, where you can still access the papers and only need them occasionally.
- Safe deposit box or high-quality safe – Keep vital records and difficult-to-replace documents here.
As an alternative to paper files, scanned documents stored in your computer and in an external hard drive or off site back-up system can replace paper files.
What records do you need to keep? Click here and scroll to Page 2 to access my chart that summarizes where and how long to keep many of your financial and important documents.
When you discard papers that have personally identifying information, like social security and bank account numbers, be sure to shred them.
Happy purging!
