Some paperwork, like tax returns, you wish to keep around forever, and therefore it makes sense to carefully file it away. But what about bank statements, power bills, store receipts, and other items you want to keep for a few months but not forever? If you file those away, you need to then find the time to periodically comb through your old paperwork and throw it out. This is very time-consuming and will either take up more of your time than it should or you’ll end up with a bunch of old paperwork pushing you out of your office.
Here’s a neat solution:
1. Create a file folder for each month of the year.
2. Put bill stubs, paycheck stubs, bank account statements etc… (anything you want to keep for a while but don’t want forever) in the file folder for the current month as you receive it.
3. When a year passes and you get to the current month’s folder that now has year-old paperwork, just throw out everything in it before putting any new paperwork in (just to be safe, shred or burn everything). This will allow you to quickly find and dispose of paperwork that is at least a year old.
In just seconds a month you can find and get rid of that old paperwork. You will also have the paperwork around that you need when you need it.
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Disclaimer: This blog is not meant to give financial planning or tax advice. It gives general information on investment strategy, picking stocks, and generally managing money to build wealth. It is not a solicitation to buy or sell stocks or any security. Financial planning advice should be sought from a certified financial planner, which the author is not. Tax advice should be sought from a CPA. All investments involve risk and the reader as urged to consider risks carefully and seek the advice of experts if needed before investing.