I get a lot of questions from people about how long to hang on to financial documents and bills. Do you really need your water bill from five years ago? Probably not. What about your bank statements from this year? Maybe. While there are no cookie cutter answers for how long to keep everything from pay stubs to garbage bills, it’s smart to create an organizational system that works for you.
And, how you dispose of that sensitive data is just as important as what you keep. Today’s challenge helps you clean up a financial mess and put in its place a smarter strategy designed just for you.
Just as a reminder, each of the Financial Decluttering assignments should only take 10-15 minutes and you’ve only missed assignments to Clean Out Your Wallet, Clean Out Your Refrigerator Door, Clean Out Your Car Console, Clean Out Your Sock Drawer, Organize Your Coupons, Clean Out Kids’ Backpacks, Clean Out Your Purse or Bag, Clean Out ONE Pantry Shelf, Clean Off Your Desk. Then check out Clean Up Your Phone’s Apps, Clean Out Your Inbox, Clean Out the Junk Drawer, Declutter Your Shoes, Clean Out Your Freezer, Count Your Change, Clean Out ONE Clothes Closet, Clean Your Cleaners, and Clean Out Your Linen Closet.
Just a reminder, don’t forget to join the Financial Decluttering Facebook Group of over 1400 people for ideas and encouragement. You’ll love the photos of the clean wallets, clean refrigerator doors, car consoles, coupon binders, backpacks, purses, desks, shoes, inboxes, and more!
Now, on to the challenge!
Day 19: Clean Out Old Bills
Whether they’re stuff in a drawer, stored neatly in a binder, or collected on the corner of your desk, it’s a good idea to regularly sweep through your bills. But, it can be tricky to know what to keep and what to pitch. Even if the majority of your bills are paperless, you need to have an organizational strategy to keep things in place.
Why It Matters:
When we don’t know where our bills are at, we’re more likely to face late fees. Chaos and disorder in our physical bills breeds chaos and disorder in our broader finances, too. And if you’re the one who handles the primary finances in your household (raises hand), and heaven forbid something were to happen to you, your people need to know where the goods are at.
Today’s challenge focuses on gathering all of your bills into place. If you’re like us, you pay bills both online and with paper, too. You’ll want to work through both types of bills. If your information is stored online (even if you receive a physical bill in the mail), there’s really no need to keep hard copies anymore. You should be able to access the information at any point in time (as should your provider of services). However, if this makes you nervous, feel free to keep old bills for about a year. But do so in an orderly fashion.
Let’s get to work, shall we?
How to Do It:
- Gather all of your paper bills into one place.
- Sort through those that are dated one year or older.
- Keep ones you think you might need or have needed in the past.
- Shred those you won’t use.
- Organize remaining paper work into a folder or binder. Whatever works for you is just fine. I typically only keep 1 month prior on paper bills. But I can access all of my information online.
- For digital bills, create a folder on your web browser with the links to where you go directly to pay said bill.
- Be sure you have a list of passwords where someone could find it if something happened to you. Keep it in a secure location and let someone you trust know where it’s at. 1Password is a handy app if that’s your style.
- When you’re finished, take a photo and post it to the challenge post in the Financial Decluttering Group. We’ll celebrate your victory. And/or post on Instagram with the #FinancialDecluttering Hashtag.
- You’ll get bonus points and virtual fist bumps for interesting discoveries.
How to Keep It That Way:
Find an organizational system that you love. This may mean you purchase cute folders or better yet, create them yourself. When you have a system that makes you smile and is easily at hand, you’re more likely to stick to managing it well. Be sure that you regularly clean through your bills. An easy way to do this is to remove an old bill when the new one arrives.
Don’t keep things you don’t need. It’s highly unlikely that most of us will need to access bank records from five years ago. Those papers are taking up space in your home and won’t add to your life. Sort through and pitch what you can, keeping only what you need. Again, the majority of our information can be printed from the internet if we get into a pinch and need something that’s been shredded. Or you can even call a bill provider and ask them to reissue a statement.
When you have an ongoing dispute – say over medical bills – you may want to designate a folder specific paperwork regarding the process. However, for run of the mill bills, this really isn’t necessary anymore.
A Few More Thoughts:
I can’t wait to see all we achieve together this month. I’ll continue sharing my own journey in the Financial Decluttering Facebook Group and via e-mails. Be sure you subscribe for both.
Post a photo of your bill organization victories and tips in the comments! I want to see what sorts of systems you use to organize.
Our new book Your Money, Your Marriage is now available! Be sure to check out videos on managing money together on Facebook.
My book is now available: Slaying the Debt Dragon: How One Family Conquered Their Money Monster and Found an Inspired Happily Ever After. You can also check out The Debt Free Devotional
This post contains an affiliate link. That means when you get a great deal, learn about a way to save, or maybe even something for free, I may end up making a small commission. All prices are subject to change.
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