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Every Month: I'll be the first to admit that it's hard for me to throw away a receipt. Whenever I purchase anything, including lunch, I record it in Microsoft Money and then file away the receipt. If it's a receipt for a large ticket item, like a DVD player, I enter it, make a copy of the receipt, and tape it to the inside of the box. That way, if I have to return it, I have the box and the receipt without searching for it. We usually make those big purchases at Costco, and for awhile, anyway, they had an unlimited return date. It was good to have the box and the receipt to make sure you were credited for the amount you paid and not for a sale price.

Toss out ATM, bank deposit slips, and credit card receipts, unless you may need them for audit purposes. Be sure to check them against your bank or credit card statement first. Toss out receipts for minor purchases unless there is a warranty or refund involved. (Again, save the box and tape the receipt inside. Store it in the garage if necessary.)

Every Year: We did get audited this year and it might have been quite costly if I'd have had to get copies of bank statements for the past four years from the bank. I wouldn't recommend tossing bank statements.

Toss out your monthly bank and credit card statements, unless you require proof of deductions for taxation purposes. Most credit card companies provide a year-end summary that you can retain.

Toss out monthly mortgage statements provided you receive a year-end summary of your account. (I like being able to see my mortgage information online, and if I had to get copies for the current year, they're available. I doubt that you'd ever have to provide old mortgage statements - most creditors would only need to know your current balance.)

Toss out pay stubs after they are checked against your W-2 or 1099. (I totally agree. I use direct deposit and don't even get a pay stub.)

Toss out your W-2 and 1099 forms from seven years ago and earlier.

Toss out canceled checks and receipts or annual statements for mortgage interest, property taxes, deductible business expenses or other tax-deductible expenses if they are seven years ago or earlier. (ONLY if they are seven years ago or earlier.)

Keep Indefinitely: Scanning, for me, is just added protection for those items that could be destroyed by fire or water. Of course, if you're scanning, it's important to have a backup system. I've been using Carbonite for about a year now and feel confident that I could restore all of the information on my computer if I had to.

Annual tax returns. (My CPA provides my return in pdf format, so I have several years saved on my computer. It's great when I have to provide a copy because I can print it out as needed.)

Year-end summary statements from financial institutions

Receipts for the purchase of any investments you own. (This includes homes and land, and any cars you currently own.)

Receipts for home improvement costs or major purchases that may be needed for insurance claims or similiar. (Keep a copy of these receipts and any photos in another location. Our daughter's records were in the beach house that was destroyed by Ike, so they have had to rely on copies of checks and photos taken by people who came to visit to recreate what was in their home for insurance purposes.)

I don't like extra clutter, but I don't want to be unable to provide a receipt or a copy of a statement if necessary. I hope these ideas are helpful to you as a guideline on what you need to keep, but hope that you won't toss anything that will make you feel uncomfortable. I buy those bankers boxes and try to only keep what I can put in one box for that year. I label the front and add it to my stack of annual files. I go through the box on the bottom that's now from eight years ago, and look for anything that should be kept indefinitely. I burn the rest. It works for me, and I hope you find a system that works for you.