Save It or Shred It?

Every year, it’s a good idea to do some “financial spring cleaning.” That means sorting through the piles of papers that accumulate in file cabinets, drawers, and folders—and deciding what’s worth keeping and what can be shredded for good.

Here’s a simple guide to help you know how long to keep your financial records.

Keep Forever

These are the once-in-a-lifetime documents you’ll almost never get reissued. Store them in a safe place—ideally a fireproof safe at home or a safe-deposit box.

• Birth and death certificates

• Social Security cards and ID cards (even expired)

• Passports (even expired)

• Marriage licenses and divorce decrees

• Wills, trusts, and powers of attorney

• Adoption papers

• Records of paid mortgages

• Safe-deposit box inventory

   

Keep for 7 Years

Seven years isn’t random—it’s how far back the IRS can audit your returns.

• Tax returns and all supporting documents (W-2s, receipts, canceled checks)

• Records of home or stock sales (for capital gains taxes)

• Paid-off loan records

• Sold investment records

• Mortgage documents

• Medical records, bills, and insurance claims

   

Keep for 1 Year

These short-term records can usually be shredded after a year, unless they’re needed for taxes.

• Bank statements

• Pay stubs

• Quarterly investment statements

• Canceled checks

   

Keep for 45 Days

• Credit card statements (unless needed for tax, insurance, or business purposes)

   

Keep for 30 Days or Less

• ATM receipts (until verified with your bank statement)

• Utility and phone bills (once paid, unless deductible for taxes)

Sorting through financial paperwork doesn’t have to be overwhelming or time-consuming. Once you understand what to save and what to shred, the process becomes simple and stress-free. Staying organized not only frees up space in your drawers and filing cabinets, but it also gives you peace of mind knowing that your most important documents are safe and easy to find when you need them. A little effort now can save you a lot of hassle later—and your future self will thank you for it.