When Less Is More MoneyTheres nothing wrong with being a little sentimental, but we shouldnt hold on to more than we needfrom clothes to outdated gadgets to paperwork and receipts. Want to streamline your life but arent sure where to start' Heres a guide to what you can toss, what you should keep, and clever ways to turn your castoffs into cash. Pitch PaperworkStill have your 2008 tax returns' (Honestly, I only got the courage to shred mine right before I wrote this column.) Discarding old tax forms or receipts can be nerve-racking, but try not to let emotions get in the way, says Cass McCrory, author and creator of the Subtraction Project. 1. Tax returns and supporting documents The IRS says most of us can discard tax paperwork three years after the date we filed. Uncle Sams time frame for an audit generally expires after that. (Keep digital scans if you want to be extra careful.) 2. Merchandise receipts Depending on where you shopped, you might not need a receipt for a return. Target, Nordstrom, Macys, and other stores allow returns of many items without a receipt if they can track your purchase using your credit or debit car d, or by an email order confirmation for online purchases. Check the store policy before ditching your paperwork. 3. Warranty Receipts For big-ticket items (like electronics or appliances) with a warranty, McCrory recommends keeping receipts and related paperwork for at least the term of the warranty, which is usually one to two years. After that, they can go in the trash. 4. Bills, pay stubs, bank statements Unless youre applying for a loan, like a mortgage (which requires an assortment of recent documents), you can confidently shred any statements that can be retrieved online and printed if need be.Embrace Online BankingTo minimize financial paperwork and bills, sign up for electronic statements. Not only does this reduce waste, but some banks and credit unions even offer incentives, like decreased account fees, when you go green. Vanguard account holders, for example, can avoid the $20 annual service fee by signing up to receive statements and notifications online. Living with less can help us resist the urge to splurge: A study in the Journal of Consumer Research found that being in cluttered environments decreases self-control, resulting in a greater likelihood of impulsive spending.Earn Cash for ClutterYour dusty ski jacket and 2010 iPad may evoke great memories, but ask yourself, Does this item serve me today' Will I use it within the next year' If yes, then it stays, says McCrory. But if the item has gone unused for longer than a year, it might be time to cash in. Luckily, these sites make resale a breeze: 5. Used iPhones: Gazelle.com The site will send you a prepaid shipping label, inspect the gadget, and pay you for your device. At the end of last year, an iPhone 6s in good condition fetched an average of $245. 6. Other electronics:NextWorth.com Ship GoPros, laptops, or wearable tech to NextWorth and get cash in return. Says CEO David Chen, Even if a product is broken, it can see strong trade-in value. 7. Designer clothing: Tradesy.com List high-fashion duds, and when you land a buyer, Tradesy will send a box and shipping label (and take a commission off the top). 8.Other clothing: ThredUp.com The site sends a bag with a prepaid shipping label; fill it with good-condition clothing and accessories, then ship it back. ThredUp lists items for you, and you earn a percentage of the sale price. Farnoosh Torabi is a personal finance expert, the author of When She Makes More, and the host of CNBCs Follow the Leader and the award-winning podcast So Money. -- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.
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