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6 Reasons to Keep Receipts…Or Not!

6 Reasons to Keep Receipts…Or Not!

When we work with clients in person to sort out their papers and create systems for them, we always run into the issue of keeping receipts.

For purposes of this article, we’re speaking about personal receipts for managing your household. Businesses should keep all receipts and should definitely use financial management software like QuickBooks or Peachtree to track and report on the information.

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Most personal expenses, however, are routine and irrelevant, and keeping all receipts would be a waste of time and energy. Do you really need a receipt to prove that you bought some gum along with your gasoline?

There are essentially 6 reasons that people should keep receipts:

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1. Proof of purchase for warranties: Receipts for any major purchase such as appliances, electronics, or jewelry should be filed in your warranty files and retained as long as you own the item. We usually make files with the major heading “Warranties & Instructions” and then have folders for subcategories of Major Appliances, Small Appliances, Electronics, Computers & Peripherals, etc. depending on the person’s buying habits.

2. Proof of major expenses: Receipts for any major expense for your car should be kept in a file for that vehicle, as long as you own it. Major home improvement expenses should be kept in a file for “Home Improvements & Repairs” and then kept with your tax records after you have sold the home.

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3. Merchandise returns or exchanges: If you possibly could return an item (or if you gave it as a gift), you may want to hold onto the receipt for 30 days or as long as the store’s return policy applies (some are only 14 days). After that point, you can either throw away the receipts or file them if you need them for warranty reasons. We recommend having a spot for these kinds of pending receipts, such as a slot in a letter sorter or a “waiting” folder, and cleaning it out periodically when full.

4. Expense reimbursements: You may need to be reimbursed for work expenses made with personal funds. First, find out if your company can give you a credit card to use for these items in the future to keep things simpler. You also might enjoy using NeatReceipts, a scanner/software combination made just for this purpose.

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5. Budgeting and reconciling: You may be trying to make sense of how much you spend in certain categories. With online banking providing more and more data, do you really need to track everything? Sometimes we talk with our clients about what I call “Quicken Guilt,” the feeling of inadequacy of not entering every receipt into financial software and reconciling everything to the penny. If you feel you must keep receipts for this reason, we recommend having a simple January-December expandable accordion file to quickly and easily put them away.

6. Tax deductions: If you are going to tell the IRS something, you need to be ready to back it up. We recommend having an income tax file for each year. Always have at least one year’s tax folder made up in advance so you’ll be ready when the paper arrives. When you do have a receipt that will be tax deductible, you can jot a quick note on it first and then drop it in your tax file. Tax organization needs can vary widely depending on your situation, but most households don’t have that much and one folder will do.

Other than these reasons, you generally do not need to keep receipts, so liberate yourself and throw some away today!

Lorie Marrero is a Professional Organizer and creator of The Clutter Diet, an innovative, affordable online program for home organization. Lorie’s site helps members lose “Clutter-Pounds” from their home by providing online access to her team of organizers. Lorie writes something useful, funny, interesting, and/or insanely practical every few days or so in her Clutter Diet Blog. She lives in Austin, TX, where her company has provided hands-on organizing services to clients since 2000.

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Last Updated on October 16, 2018

Why Do I Have Bad Luck? 2 Simple Things to Change Your Destiny

Why Do I Have Bad Luck? 2 Simple Things to Change Your Destiny

Are you one of those people who are always suffering setbacks? Does little ever seem to go right for you? Do you sometimes feel that the universe is out to get you? Do you wonder:

Why do I have bad luck? Is bad luck real?

Let me let you into a secret:

Your luck is no worse—and no better—than anyone else’s. It just feels that way. Better still, there are two simple things you can do which will reverse your feelings of being unlucky and change your luck.

1. Stop believing that what happens in your life is down to the vagaries of luck, destiny, supernatural forces, malevolent other people, or anything else outside yourself.

Psychologists call this “external locus of control.” It’s a kind of fatalism, where people believe that they can do little or nothing personally to change their lives.

Because of this, they either merely hope for the best, focus on trying to change their luck by various kinds of superstition, or submit passively to whatever comes—while complaining that it doesn’t match their hopes.

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Most successful people take the opposite view. They have “internal locus of control.” They believe that what happens in their life is nearly all down to them; and that even when chance events occur, what is important is not the event itself, but how you respond to it.

This makes them pro-active, engaged, ready to try new things, and keen to find the means to change whatever in their lives they don’t like.

They aren’t fatalistic and they don’t blame bad luck for what isn’t right in their world. They look for a way to make things better.

Are they luckier than the others? Of course not.

Luck is random—that’s what chance means—so they are just as likely to suffer setbacks as anyone else.

What’s different is their response. When things go wrong, they quickly look for ways to put them right. They don’t whine, pity themselves, or complain about “bad luck.” They try to learn from what happened to avoid or correct it next time and get on with living their life as best they can. They have this Motivation Engine, which most people lack, to keep them going.

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No one is habitually luckier or unluckier than anyone else. It may seem so, over the short term (Random events often come in groups, just as random numbers often lie close together for several instances—which is why gamblers tend to see patterns where none exist).

When you take a longer perspective, random chance is just . . . random. Yet those who feel that they are less lucky, typically pay far more attention to short-term instances of bad luck, convincing themselves of the correctness of their belief.

Your locus of control isn’t genetic. You learned it somehow. If it isn’t working for you, change it.

2. Remember that whatever you pay attention to grows in your mind.

If you focus on what’s going wrong in your life—especially if you see it as “bad luck” you can do nothing about—it will seem blacker and more malevolent.

In a short time, you’ll become so convinced that everything is against you that you’ll notice more and more instances where this appears to be true. As a result, you will drown yourself in negative energy and almost certainly stop trying, convinced that nothing you can do will improve your prospects.

Fatalism feeds on itself until people become passive “victims” of life’s blows. The “losers” in life are those who are convinced they will fail before they start anything; sure that their “bad luck” will ruin any prospects of success.

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They rarely notice that the true reasons for their failure are ignorance, laziness, lack of skill, lack of forethought, or just plain foolishness—all of which they could do something to correct, if only they would stop blaming other people or “bad luck” for their personal deficiencies.

Your attention is under your control. Send it where you want it to go. Starve the negative thoughts until they die.

To improve your fortune and have “good luck”, first decide that what happens is nearly always down to you; then try focusing on what works and what turns out well, not the bad stuff.

Your “fate” really does depend on the choices that you make. When random events happen, as they always will, do you choose to try to turn them to your advantage or just complain about them?

If you think you’re “suffering from bad luck”, you can really change things up and start life over. It may even be a lot easier than you thought:

How to Start Over and Reboot Your Life When It Seems Too Late

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Thomas Jefferson is said to have used these words:

“I’m a great believer in luck and I find the harder I work, the more I have of it.”

Ralph Waldo Emerson said:

“Shallow men believe in luck. Strong men believe in cause and effect.”

Your luck, in the end, is pretty much what you choose it to be.

Featured photo credit: LoboStudio Hamburg via unsplash.com

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