I found my paper clarity by having a simple system that I could quickly use to manage all my important papers.

Active Storage

Active paperwork is anything that I will need for the next year/tax season. It can be as simple as one container in a drawer, or slightly more elaborate in the form of a filing system that separates paperwork by type.

Keep your Active Storage in a place that’s easily accessible, so you don’t create paper piles around the home.

Archive Storage
An archive area is a place to store recent tax return information that you likely won’t need to access, but can be easily located if you need it. My recommendation is to store the prior 6 years of tax returns. This archive paperwork can be stored away in a closet or even in your attic, as you will not need to access it frequently.

Safe Storage

I always recommend considering a safe or fireproof box for important documents like birth certificates, titles and deeds etc.

You can also check out my blog post which includes a FREE Paper Management Cheat Sheet outlining how long to keep different documentation for.