Even though we’re an increasingly digital society, the age old question of how long to keep paper still exists. Statistics show that 80% of the papers that get filed will never be accessed again. Does that mean you can get rid of 80% of the paper you currently have? Not necessarily. It does however, mean that you can get rid of a large portion of the paper you are currently holding on to.

Most paper records are also acceptable in digital format. But, before you start scanning all the paper in your files let’s save some time by eliminating any unnceccasry paper. For now, as we discuss “paper” retenetion guidelines, know that we are referring to the type of information the paper represents, not necessarily whether or not it’s in paper form.

Most people have a lot of anxiety when it comes to getting rid of paper. Paper used to be our only form of aquiring information and so the default reaction was to keep it. However, now we live in the information age and almost anything we could want is literally at our fingertips. It’s time to rethink our relationship with paper.

First, it’s important to get clear on the purpose of our paper. We use the information contained in our papers for a few core reason:

• Documentation
• Proof
• Information
• Memorabilia

When deciding whether or not to keep a piece of paper ask yourself these questions:

1 – Do I need this information as documentation for taxes, legal or other circumstances?

Legal, insurance matters, and disputes are just an example of circumstances that require us to document conversations, transactions, procedures etc. It is also important to have documentation of any line items on your tax returns.

2 – Do I need this information as proof of reimbursement, payment, purchase, etc?

Proof of money paid or received for reimbursements, warranties, deductibles, tax deductions, legal actions, etc fall into this category.

3 – Is this information readily available online?

I would dare say, most of the information we receive in paper form is easy to aquire online. For instance, usage details from utilities and cell phone providers, bank and credit card statements, copies of cleared checks, etc. are all available with a username and password. More generalized information like recipes and how to’s can be found with a simple Google search.

Hopefully, now that we have a clearer understanding of what papers to keep and why, it will be easier to let go of the ones we don’t need.

Knowing what to keep is the first step. Knowing how long to keep it is the next step. Below is a very basic overview of personal paper retention guidelines to get you started. However, your individual circumstances will dictate the specifics for you. Always consult a financial or legal advisor if you have any questions.