Rotate and Update Your Files
Once you have set up your filing system for household papers, be sure to rotate current files into long-term storage as required. For example, once you have filed your annual tax return, put copies of all relevant documents in a separate permanent tax file for easy retrieval (tax documents should be kept for a minimum of seven years). Then throw out all papers you don't need and start a new tax file for the current year. Update health insurance files with new policy provisions. Keep savings and investment files up to date with current balances and account numbers. Be sure to back up computer files on
a separate disk.