what are the latest docs, such as uti, phone, ins bills should I keep in order for later use?

Question

I am cleaning up my room and finding a lot of old document. They are piling up. I don't know what I should keep and dump. Please help.

Answer 1

I keep documents the following way:

1. Separate all documents (bills, etc) by month. One month = one file folder.

2. Keep 1 year's worth of folders. When you repeat the month, ie, you hit next January, throw away the contents of the January folder and replace it with the current contents.

3. I keep 5 years worth of tax returns in their own separate folder just to be safe.

4. High profile or high priority documents get their own separate folders and are kept idefinitely.

When discarding the old documents, shred (cross-cut) or burn them to prevent identity theft.

Answer 2

For tax purposes, you need to keep your bank statements and cancelled checks for 3 years. Also, any reciepts for which you take a deduction from your income taxes like real estate taxes, mortgage interest paid & charitable contributions, also keep for 3 years. Insurance bills, keep for the term of the policy then discard. Utilities, phone, electric bills, toss after paying.