Okay, so we live in a completely electronic technology world. And if you are anything like me, I view receipts as convenient paper to dispose of my gum in. Or I leave it at the table at the restaurant. I have gotten so used to saying "Oh no thank you" to the people at the checkout of any store that I do it without thinking. (Really, who wants all that clutter anyways?) The thought of receipts sitting in my already small apartment just makes me think of wasted paper making clutter that I will never again look at anyways. You might be like me. If you aren't? You are a more perfect human being and you can just stop reading this post.
Some of these receipts we should be saving though. (Yes, even if they already show up on our bank accounts online.) Which ones though? And for how long? And what is that whole "save your receipts for taxes"? (I mean, am I really going to get Audited?)
1. Clothing receipts- but only until you have worn the clothes a couple of times. You would be surprised how much money you can save if you save that receipt until you get home, try the outfit on in your normal lighting or let it sit in your closet for a week and decide you simply aren't as fashion adventurous as you thought you were in the store and are then able to return it.
2. Furniture and big appliances- not just for the warranties but also for homeowner's or rental insurance. (I haven't made too many of these purchases; I am still using a hand-me-down couch, but someday I would sure like to replace it)
3. Bank Statements and paystubs- if they are not electronic and only until you have the annual statement.
4. Business and Self Employment receipts- all of them. for tax reasons come tax season.
5. Work expense reimbursements- it depends on your company, but there have already been things that I will not be reimbursed for because I said my typical "Oh no thank you"
6. Tax items- such as medical expenses and donations. (you might want to save medical ones for insurance anyways)
How long? rule of thumb is 7 years for tax purposes. (So basically forever?)
Personal advice? Save big purchase items over $100 (small household purchases are not the main concerns in an audit) and make some sort of filing system to keep the important receipts. And as for the other receipts? Please use them as gum wrappers... no one likes when they step in gum in their new heels.
You should scan your receipts and then you don't have to worry about all the paper!
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