A clutter-free space is essential for running a business, managing a home, or staying sane. Reducing paper documents saves space and keeps sensitive information secure and accessible.

Start decluttering with our guide on what to keep, how to safely dispose of the rest, and how Trustworthy can simplify organizing your important files.

Key Takeaways

• Documents like birth certificates, Social Security cards, passports, and marriage certificates cannot be replaced with virtual copies, so you must keep physical copies. 

• Scan your documents using a DPI of at least 300 for clarity and save text-heavy documents in PDF format.

• Digital document storage best practices include using digital billing, cloud storage solutions like Trustworthy, and shredding documents containing personal information. 

Step 1: Identify What Documents to Keep, Digitize, or Discard

Decluttering your paperwork starts with identifying which documents you need to keep and which you can securely dispose of. 

Documents to Keep (Physical or Digital Copies)  

Despite living in an increasingly digital world, some documents cannot be replaced with virtual ones, so it’s vital to keep the physical copy safe. You should also keep a digital copy for your records and instant access. 

Personal Records: 

Documents like Social Security cards, birth certificates, passports, adoption papers, marriage/divorce certificates, and custody agreements should be kept in secure storage locations like hard drives, water, and fireproof safes. You should also store copies in a digital vault like Trustworthy. 

Trustworthy’s Family Operating System® is designed to help families get and stay organized while offering a secure and intuitive platform to manage document storage. 

Financial Records: 

Documents like loan agreements, past tax returns, and investment records are incredibly important to store because they can still be used for auditing or legal purposes. 

Keeping these documents for at least seven years is a good rule of thumb. Mark Gallegos, a CPA in Chicago, told USA Today this rule exists because the IRS “typically has up to six years to audit your return if there’s a big issue, like unreported income.” The seventh year is just a buffer if a dispute is drawn out. 

This also applies to financial documents like property deeds, mortgage records, 1099s, receipts, W-2s, and expense records. Keep these records long-term, and use digital storage to save space and stay organized.

Legal Paperwork: 

Documents crucial for legal and financial decision-making, such as contracts, power of attorney forms, advance directives, POLST forms, and other estate planning documents, should also be kept safe. Keep physical copies of legal documents in a secure safe to protect them from physical damage, and keep digital copies for better accessibility.  

Documents to Digitize (Scan and Store Securely)

One of the best ways to reduce your document storage, reduce clutter, and improve the security of your information is by digitizing.  Documents suitable for digitizing include: 

• Utility bills 

• Insurance policies 

• Bank statements 

• Receipts for tax deductions 

• Warranties 

• Business records like employee records and non-original contracts 

• Household maintenance record 

Keeping digital copies of these documents is excellent for removing clutter, allowing secure sharing, and allowing for quick reference during tax filing and warranty claims. 

Documents to Discard (Shred or Recycle)

Paperwork tends to pile up in the blink of an eye, and most of the time, that pile of paperwork you’ve been avoiding is full of unnecessary documents. Documents that lose value over time and can be discarded include: 

• Junk mail 

• Outdated utility bills 

• Expired insurance policies 

• Receipts for appliances and major purchases that you no longer own 

• Warranties for items you no longer own 

• Bank statements older than seven years or for accounts that are no longer in use 

• Duplicate copies of documents or outdated documents 

If you’re unsure whether to discard a document, you can keep a digital copy without worrying about physical clutter. 

Step 2: Digitizing and Organizing Your Documents

The best way to reduce your document storage is by digitizing documents using an organizational partner like Trustworthy, which comes with AI-powered tools that make uploading and organizing your documents a breeze.  

Best Practices for Scanning Documents

The most important step of the digital organization is scanning documents with usability and longevity in mind. The two most vital things to keep in mind are: 

• Resolution: use a minimum of 300 DPI for clarity.

• File format: text-heavy documents will benefit from a PDF format because most software uses this format. Images can be saved in JPG or PNG format. 

Trustworthy makes it easy to scan and upload your documents directly from your phone with the built-in scanner on the mobile app. Say goodbye to juggling multiple apps! The Chrome extension brings drag-and-drop functionality to make adding files, saving email attachments, and capturing screenshots directly into your account easy. Trustworthy takes digital organization to a whole new level by forwarding your family’s essential documents to your personalized Trustworthy email address. 

Use Cloud Storage Solutions

Cloud storage options like Google Drive, OneDrive, and Dropbox provide accessibility and added security that physical storage simply cannot compete with. Some benefits of cloud storage include: 

• Encryption and advanced security measures 

• Remote access from multiple devices 

• Automatic backups to prevent data loss 

While popular cloud storage options like Google Drive are great for document storage, Trustworthy stands out with advanced document management tools and game-changing collaboration tools. 

Securely share sensitive documents by creating a trusted network on your Trustworthy account. Add family, advisors, or others, and control their access—full or limited.

For people outside your network, use SecureLinks™ to send temporary, view-only links to specific files, giving you full control over access.

Trustworthy protects your data with bank-level security, including AES 256-bit encryption, multi-factor and biometric authentication, physical security keys, redaction tools, and advanced threat detection.

It also uses tokenization—a high-level security method that replaces your sensitive data with unique tokens, storing the original info securely outside your account.

Organizing digital files efficiently

The goal of digital organization is to be able to retrieve documents quickly. Achieve this by using strategies like: 

• Folders: Avoid clutter and make finding your stored documents easy by creating categories like personal documents, home maintenance, and financial records.

• Tags: Adding searchable keywords can make it easy to filter your documents.

• Naming conventions: Get clever with how you name your files by using a consistent format. For example, you could include dates or just number your files. 

With Trustworthy, you don’t have to create a filing system from scratch. The AI-powered Autopilot has tools for predefined categories to automatically organize your documents. Other tools like filename suggestions, document insights, and summaries make organizing your digital files effortless.   

Locate your stored documents easily with Trustworthy’s search feature. When you upload a document to your account, Trustworthy automatically creates links from the document to other relevant areas of your account. For example, if you upload your home insurance policy, Trustworthy will create links to other documents like mortgage records and title deeds to save you time.  

Step 3: Securely Disposing of Unneeded Documents

Securely disposing of documents with sensitive information is crucial to prevent identity theft, blackmail, or unauthorized access to your personal data.

When to Shred vs. Recycle

Documents containing personally identifiable information (PII), such as your physical address, account numbers, login details, tax information, confidential business data, and Social Security number, must be shredded to be unreadable. This even includes junk mail, such as pre-approved credit offers. 

Generic documents without sensitive information can be recycled. For added security, we recommend removing identifying details like your name. 

Using Shredders 

The type of shredder you use is important. We recommend cross-cut shredders over strip-cut shredders because they provide a higher level of security with smaller cut pieces. Micro-shredders are also a great option. 

For large volumes of documents, hiring professional shredding services is recommended for secure disposal. 

Community Shredding Events 

If you don’t have access to a shredder, keep an eye out for any local community shredding events where local businesses and organizations will offer free or low-cost shredding services. 

Step 4: Implementing a Paperless System Going Forward

There’s never been a more perfect time to start implementing a paperless system than now, and here’s how: 

Set Up Digital Billing and Statements

Many banks and service providers now offer paperless billing, which reduces paper clutter, makes statements easier to access, and provides better security than mailed documents.

Use Password-Protected Storage and Encryption

Always protect your sensitive documents with password protection and encryption. When choosing a password, never use old or compromised passwords. Store your passwords somewhere secure, like Trustworthy. 

Store critical backups on secure external drives or encrypted cloud services.  

Conduct Regular Reviews 

Having efficient, organized, and secure document management is not a one-time task. It requires regular maintenance and review. You can use Trustworthy’s automated reminders to schedule annual or six-month reviews for missing and unnecessary documents.  

Digital Document Management with Trustworthy

Reducing your document storage is an ongoing process that requires strategic planning, and Trustworthy can make this process of digitizing your paperwork smoother. 

Try Trustworthy for free and stay as long as you like. 

Frequently Asked Questions 

How long should I keep medical records before discarding them?

The timeline will depend on the type of record. For example, records of ongoing conditions, vaccinations, and major surgeries should be kept indefinitely. Records like doctor visit summaries can be discarded after 10 years.  If you’re unsure, consult with your medical provider. 

What are the risks of using external hard drives for document storage?

External hard drives can be damaged, lost, or fail over time. If you use external hard drives, we recommend using cloud storage as well. 

What’s the best way to back up my digital files to avoid data loss?

You should follow the 3-2-1 backup rule, which includes:

• 3 copies: the original and two backup copies

• 2 different types of media: store your documents with two different methods, like external hard drive and cloud storage

• 1 off-site copy: Store one copy in a separate location from your primary location. It can include physical or digital methods.