As spring approaches, Marie Kondo’s KonMari method is inspiring everyone to get rid of stuff. Lots of stuff.
BUT, there are some things you shouldn’t get rid of, explains Tony Steuer, recognized authority on financial literacy and author of GET READY! A Step-by-Step Planner for Maintaining Your Financial First-Aid Kit, namely: certain personal and financial documents.
Yes, it’s important to cut down on the clutter, but what documents, exactly, are non-essential, what’s a short-term keep, and what’s a long-term document? Below are just a few recommendations from Tony’s list of common papers:
- Bank account records: Keep statements & canceled checks for 6 years (receipts until statement reconciliation)
- Car (title, registration, repair records): Until 6 months after sale
- Home purchase documents: Keep on had for at least 6 years after sale of home
- Pay stubs: Keep for 6 years
- Credit card statements and documents: If used for tax purposes, keep for 6 years; otherwise shred statements & receipts after reconciling statement, or longer if you wish to return something
- Student loan records: Keep indefinitely as proof of payoff
- Rental agreements: Retain for up to 6 years after agreement is terminated
- Health insurance policy and documents: Until coverage ends or is canceled
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