The KonMari method is taking over homes by storm. We are encouraged to keep things that spark joy, declutter, and organize our belongings into designated boxes. While this particular method by Marie Kondo is specifically used for our homes, it can also help us tidy-up our finances. Here is what you should keep and toss so that your finances are nice and neat:
Keep: Create a special filing cabinet with separate folders for important documents such as:
- Marriage certificates
- Birth and death records
- Divorce and custody documents
- Insurance policies
- Mortgage deeds
- Real estate transactions
- Receipts for large purchase items for proof of their value.
It is also a good rule of thumb to keep tax documents, pay stubs, and student loan records.
Toss: The new tax laws have resulted in fewer people filing itemized tax returns. Many are opting for the standard deduction instead. If you choose the standard deduction, you can throw out those receipts you've been saving to itemize. We also recommend tossing out any financial documents older than seven years. But whatever you do, make sure you safely shred these documents to protect your personal identity.
Moving forward, try and request any bills or receipts in a digital format to reduce the amount of paper you have or find yourself throwing away. Trust us when we say this will spark joy without a doubt.
You may also like…
Smart Financial Moves in Your 40's and 50's
Signs That Say Its Time To Downsize
How to Wean Your Grown Kids off Your Payroll, Freeing up More Retirement Cash
