Home Filing System: What to Keep

Saving important documents is essential for your finances, career, health, etc.  However, when it comes to setting up a home filing system, everyone is different.  Some people opt for filing cabinets while others shove old receipts in a shoe box.  Others have gone completely digital by scanning and shredding the information they need to keep handy (though it is important to note this method requires security measures and frequent system checkups).

No matter what system you decide on, you need to know what documents need to be saved and what can be discarded.  If you save stuff you don't need, your system becomes cluttered.  On the other hand, forgetting to save an important piece of paperwork can have consequences in the future.

Here's a short list of what you should always save:

• Bank Statements
  Track your spending, keep track of major withdrawals,  guard against fraud.
  
• Paid Bills
  Proof in case there is a mix-up, another way to track spending.
  
• Credit Card Information
  Protect against fraud, stay up to date on policy changes.
  
• Health Records / Bills
  Information for new doctors / specialists, timeline of health history, proof of payment.
  
• Career Certifications
  It can be difficult to get copies of certificates.
  
• Education Transcripts / Degrees
  It can be difficult to get new copies.
  
• Insurance Policies
  Always be prepared for an accident  / emergency.
  
• Product Warranties
  Save money if something breaks.
  
• Receipts from Debit / Credit Purchases
  Balance your monthly statements.
  
• Pay Stubs / W-2 Forms
  Save at least the last year's for easier tax filing.