As most of us shelter in place, we are tackling projects around the house. This is the perfect time to clear out our home offices. I like to call it a financial spring-cleaning. Just like when you go through your closet or food pantry to determine what to keep, what to donate, and what to toss, you need to do the same with your financial life.
Perhaps even more important than what you keep is what you can shred, recycle, or delete. Keeping unnecessary documents and statements makes it harder to locate important information in a hurry. Most of us waste a lot of time trying to find things on our computer and amidst our papers. Getting rid of unnecessary documents frees up precious space in your file drawer and on your hard drive.
Keep both a recycle bin and a shredding bin near your desk or wherever you pay bills or go through mail. Shred or delete monthly statements once you receive year-end summaries for your investment accounts. Shred anything with identifying information that you no longer need. Bill stubs, credit card solicitations, even prescription drug labels and instructions contain identifying information. If you are ever in doubt, shred.
During your financial spring-cleaning, you will have a lot of paper and documents to recycle or shred. If you have a significant amount to shred, consider using a professional shredding service. A professional shredder is secure — you can watch them put your materials in a massive shredding machine. It is also beneficial for the environment because everything gets recycled. Professional shredding saves a lot of time and is not expensive. Some communities even have document destruction events that are free.
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