Declutter Your Paperwork: How to Organize, File, and Know What to Keep or Toss

Step 1: Set Up a Simple Filing System

The foundation of paper organization is a clear, accessible filing system.

1. Choose a File Cabinet or Storage Box: Keep it in a location you can access easily.
2. Gather All Important Papers: Bills, school records, bank statements, recipes, insurance policies, etc.
3. Sort Into Categories: Stack documents by type (for example, Medical, Household Repairs, Vacation, Financial).
4. File by Frequency of Use
   1. Front: Active files like bills and current accounts.
   2. Back: Infrequently used files like old tax returns and expired contracts.
5. Label Clearly: Use tabs for each category.
6. Create a File Index: Keep an alphabetical list of all file headings and update it every few months.
7. Stay Prepared: Keep a few extra folders in the back for new categories.

Pro Tip: Color-coded folders make it even easier to spot categories at a glance.

Step 2: Know What to Throw Away

Not everything needs to be stored forever. You can safely toss:

• Expired insurance policies (with no pending claims)
• Bank statements more than 3 years old (non–tax related)
• Records for items you no longer own (cars, boats, appliances)
• Pay stubs older than 5 years

Pro Tip: When in doubt, check with your accountant or lawyer before discarding anything.

Step 3: Know What to Keep (and For How Long)

Some documents are worth keeping for years—or even forever:

• Bank statements for tax deductions or major purchases (Keep: 6 years)
• Purchase and sale documents for every home you’ve owned (Keep: Forever)
• Credit card records (Keep: 6 years)
• Health and medical records (Keep: Forever)
• Contracts (Keep: 7 years past expiration)
• Loan papers (Keep: 3 years after payoff)

Pro Tip: Use a shredder for sensitive paperwork you discard to prevent identity theft.

Step 4: Maintain a Clutter-Free System

• Keep a wastebasket or recycling bin near your desk.
• Toss unneeded paper immediately instead of letting it pile up.
• Apply the “One In, One Out” Rule: For every new wardrobe item, file, or magazine you bring in, remove one you no longer need.

Do you have any tips or tricks for managing paper clutter?