Jun 19, 2006

Condos, weddings, and babies can introduce filing chaos.

We have friends who experienced all three of these major life events in less than two years, and as a result, the single 2-drawer filing cabinet in their tiny home office can no longer contain the havoc. We're talking piles and piles of paper that they have no time to sort but that they can't (and probably shouldn't) throw out: medical benefit explanations, hospital bills, tax records, bank statements, disclosure and closing papers... all the documents that prove that these life events did in fact happen.

There are a variety of philosophies on what records to hold onto and for how long. (Check out momready, the IRS, and BankRate.) We personally are trying to be as digital as possible, scanning whatever we can and shredding unneeded paper, but this is an imperfect system (like all others) because it takes a lot of time.

What do you do? If you've figured this one out, please let the rest of us in on your secrets.

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