Shred!
I had meant for today’s blog post to be about short sales, as my mother is currently going through one. But that’s a kind of long and somewhat complicated post, and I just did not have time to write it today. So instead, you are getting this reminder to do regular shredding of your financial documents.
Avoid Identity Theft- Shred Your Documents
In cleaning and organizing, we are going through all the random paper we have kept over the years. This includes pay stubs from ten years ago. I even found our pay stubs from the pay period we got married. (All I can say is- glad we don’t make that little anymore.)
I have decided that while it’s not a bad idea to keep the documentation from buying our current house, we do not need to hold on to all the paperwork from buying the first house, which we sold over seven years ago. We are keeping our tax documents from 2003 on, but the 2001 and 2002 documents are now gone.
We are also shredding a number of my MIL’s documents.
But More Than Once a Decade
Here’s the thing about a once a decade shred- there is so much paper that you run out of room in your recycling bin. We have an absolutely giant recycling bin, but it is combined recycling- so everything goes in it, and it’s picked up every other week. We actually burned a couple full containers’ worth of shredded paper because we had nowhere to put it and we still had more shredding to do.
Also, even with a shredder that is designed to shut itself off if it gets too hot, you run the risk of overheating the machine and breaking it. You do this, because you do not realize you have over heated the machine, you think it’s just being fussy, or perhaps has a jam and keep trying to force things through. (Or, at least, that’s what I did.)
Then you have to go out and buy yourself another machine, and because you do not realize you were the problem, you buy yourself a bigger, better, hardier machine- which is nice, but even more expensive.
Have a Plan
So here’s my advice: Shred junk mail/credit card offers, etc as soon as they come in, or no less often than once a week. Then do a big shred of old documents- like tax returns –every year, say around the time you are filing away this year’s taxes. It will save you clutter, time, and probably money, too.
True, true. I'm going to buy my parents a shredder. They have bills dating back to the 90s. They wanted to throw them in the garbage, but I told them that their information would be floating around for anybody to see.
We got a cross cutting shredder from CostCo (at least for the second shredder). Definitely a good investment.
Office Depot offers shredding for around $1 per pound, so there really is no excuse for throwing away potentially sensitive documents. Another alternative is to elect to receive everything electronically–most companies have this option, particularly banks, brokerages, credit card companies, insurance and utilities which should cover most of the sensitive documents people have.
You can also sign up with the credit bureaus to be removes from receiving those pre-approvals at optoutprescreen.com
Our credit union also offers free shred days, where you can just show up and get your stuff shredded.
A lot of companies do offer paperless, but sometimes you still get paper. We're paperless on our mortgage, but they still send us a paper bill eveyr month, I have no idea why.
And for the estate account for my MIL, paperless is not an option, just like online bill pay and debit cards aren't an option. It has to do with the type of account.
That, and as I mentioned, at least for a lot of our stuff, it's old- from before paperless was an option. So shred it is.
At least you get the benefit of the free shred days!
It's weird that the estate account can't get paperless delivery. I deal with a lot of estates and trusts as an accountant, and the ones that are with UBS and MorganStanley are able to be sent electronically. It may be the institution that the account is with which would be understandable.
Right now, it is what it is. It's not like we'll have the account for more than a few months as we get all the medical bills taken care of. But I do wish I had more e* options.
Great advice on the Office Depot/Credit Union. Hadn't ever explored that option.
There are shred opportunities all around, if you take a moment to look for them.
Hi Erin,
Thanks for the reminder. I have a habit of using discarded papers, including financial documents, to wrap something before throwing away.
I used to keep documents from years back but I've done a bit of spring cleaning and the house feels much lighter. If I really want to keep old records, I decided to just have them scanned and saved in an external drive or a cloud storage.
There are certainly some things we'll be scanning and saving electronic copies of, but there are other documents where we'll need to keep the originals (notarized things).
Our house is already feeling "lighter" with how much paper we have gotten rid of.
Shredding has been a big issue for my family. We also have about a decade of documents to shred. Lately, I've been thinking it might be easiest to burn. I have no idea why it's so easy to accumulate sensitive documents and so much harder to get rid of them.
It's always easier to accumulate things than it is to get rid of them. And with documents, there are just so many that you didn't even ask for- like credit card offers and checks.
[…] Somewhere in my house there is a closet staked full of bills, statements and receipts that all need to be burned or shredded. Thanks to Erin, I no longer feel alone. […]