Stop Worrying about Money Series–Paper Records

To continue the stop worrying series, where we are discussing the Suze Orman article, link below.  Here is the next area that she discussed.

Paper Records–Haha, I don’t know if I agree 100% with Suze on this one, I am one to hold things, but I do get them organized. She does raise a few good points like keeping big ticket items. Appliances, cars, electronics, furniture, in case you have to file an insurance claim. But to help with this we take a slow moving video of the house and all that is in it for the “in case of fire scenario”. We keep it in a fire-proof box. She also notes the following quote, which is a good point but in this economic environment, I don’t think many of us will have this problem. “Same goes with receipts for major home improvements. When you eventually sell your house, you will owe tax on any capital gain above $250,000 ($500,000 for married couples filing a joint tax return). But improvements to your home can be added onto your cost basis (what you paid for the house), decreasing your capital gain and thereby lowering—or eliminating—any potential tax bill.”

I also keep a file of items that I buy, especially the toy variety and other larger household items, so if it breaks, I will not hesitate to pull the receipt and take the faulty product back for refund or exchange. My husband shakes his head and is amazed that this usually works but I say it pays to be organized.

Suze’s shredding list is a bit more than I can swallow but she states to get rid of Paycheck stubs once W-2’s are confirmed, I would agree with this. But it has been so long since I saw a physical paycheck stub, with EFT’s and everything on-line we don’t get one. She also brings up old tax documents, that the IRS will only go back 6 years for most audits, so she said to shred anything before then. I laughed at this one because I just did a purge of our filing cabinets, but I boxed my earlier taxes and put in the attic. Low and behold, a couple of months after I did that I needed to check something from years ago regarding an investment I had made, and was able to put my hands on it. So your call on this.

She says the same for Investment/savings/401k/Credit Card statements after confirming amounts. But I have files for these, for the ones I actually receive that aren’t already electronic. You can click the link below to read further if you are in the purging mood.


~ by debt2dreams on February 4, 2012.

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