...........When I donate that bag I will start another -- now to tackle the paperwork.....out of curosity, how long to you keep papers?
Tax returns I will keep for YEARS, but I keep paycheck stubs and I've never had to look at one ever....maybe it's time for a shredder!
Paperwork is a HUGE problem of mine, and I've had a hard time finding a filing system that works for me. I'm still sick with bronchitis, but I just spent about an hour going through our backlog of mail. We were on vacation for 2 1/2 weeks, so it was quite a pile!
Tax returns should be kept forever. I've also heard 7 years, but we got audited a few years ago, and ended up having to provide stuff older than that to prove our point. My pack rat tendencies paid off in that circumstance, lol.
Technically, paycheck stubs should only be kept until you receive your tax wage statement for that particular year and also the annual statement that you receive for Social Security paid in. At that point, you should compare the numbers and make sure they all match up. The pay stubs can then be shredded. It might be a good idea to keep the last pay stub from each year though, with all of the totals on it. That being said...I have every single pay stub from the age of 16.

Perhaps I should consider following my own advice, lol.
I think I might have finally found a filing system that works better for me. The old system of throwing it in a plastic storage box and storing it in the basement wasn't working so well.
I have 2 monthly bill organizers, similar to this:
It basically looks like a notebook with folders, with 1 folder pocket for each month. One of mine is from a school fundraiser (very flimsy), and I have another nice sturdy one that I got in the office supply department at
Walmart. I guess you could make your own as well, by using a 1" binder with some school folders in it.
I labeled one of them "Financial Statements". When I get our statements from checking, savings, investments, 401k, retirement accounts, etc, I place them in the correct folder for that month. I just put January 2010 in there, so I took out the statements for January 2009, took a quick glance at them, and shredded them. You should get a year end financial statement for most of these types of accounts, and those would be the ones to stash away in your file cabinet.
The other bill organizer is labeled "Bills". This is for utility bills, credit card statements, insurance bills, etc. After the bill is paid, I slip it in the folder pocket for that month. Like above, I shred the old ones when I get to that month the following year.
I guess you could just use one bill organizer instead of two, but mine was too overpacked, so I separated them since I already owned two. I previously tried this same system, by using a monthly file folder in my file cabinet. That didn't work for me, because I had to walk to the file cabinet in order to put it in there. With the bill organizer folders, I just keep them in a china cabinet drawer near where I normally pay the bills.
DH had a more productive day that I did. He started the painting job, and did the ceiling in the 4th bedroom and all 3 bathrooms. He's going to do a prime coat on the bedroom tomorrow, and hopefully the first coat of paint as well.