New Year, New Start

Have you ever paid a bill late because you forgot it was due or you couldn't find the statement? If so, you're not alone. Statistics show Americans spend on average 150 hours a year trying to find things in their homes. Wasting time is one thing, but having to replace those lost items can really add up. "I had a client who lost her palm pilot and went out and bought another palm pilot, and it was in her desk when I went to organize her. That's several hundred dollars you're spending just because you can't find it," says professional organizer Sarah Buckwalter.

So how can you avoid this from happening to you? It's time to do a little organizing!

Straightening Up Your Stuff

Set Up a System

Buckwalter says the first thing to do is set up a system. Designate a place where all your mail and statements go immediately after you open them. That way, when you go to pay a bill, you know where it is. Start a filing system with separate folders for your mortgage payment, your phone bill, your tax documents, etc.

One Location

Make sure all your paperwork goes in one location. "Some people may have their desk upstairs and their filing systems downstairs and their stamps in the kitchen. They're running all around the house trying to do a simple task," says Buckwalter.

When picking your location, be creative. For example, if your coat closet is in the room you use as your home office, it might be better used for office supplies.

Trash It!

Once you start a system, it's time to go through all your clutter and throw away what you don't need anymore. So, what should you keep and what should you trash?

Throw Away.

You can generally throw away anything you don't need for tax purposes. This includes:

>>Bills.

You can throw away utility, phone, cable, and credit card bills once you've looked them over, paid them and have proof the payment was received by the company (i.e.: cancelled check). However, if there's a dispute, or if you're planning on taking a tax deduction, keep the corresponding receipt.

>>Expired warranties.

Once a warranty has expired, get rid of it.

>>Junk mail.

Once you go through the mail, don't keep anything that you don't need. It will just collect dust.

>>Receipts

You can throw away most receipts immediately. However, there are some exceptions:

Hold onto your ATM receipts until you look over your bank statement.

Hold onto credit card receipts until you look over your credit card statements.

If you buy a major appliance or an electronic device, hold onto the receipt until you're sure the product is working.

Don't get rid of any receipts for items you plan to deduct on your tax return.

Keep 3-7 Years

Hold onto the following items for at least three years, and as long as seven if you want to be extra safe. They are generally documents that are tax deductible or generate possible taxable income:

>>Cancelled checks.

>>Past tax returns.

>>Pay stubs.

>>Records of charitable contributions.

>>Receipts for medical expenses.

Keep Until You Sell.

>>Brokerage statements.

>>Insurance policies.

>>Real estate records.

>>Receipts for major repairs or renovations.

Keep For Future Reference.

>>Terms and conditions for credit cards.

>>Terms and conditions for other loans, like a mortgage or car loan.

>>Warranties.

Read more smart consumer tips and strategies
from Fox11 Eyewitness News Online

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