Do You Really Need to Save Your Receipts?
Friday, February 1st, 2008Do you save receipts when you make purchases? There are some people who save every single receipt in an organized fashion and are petrified of ever throwing them away. Then there are some people who trash a receipt as soon as they get it (or say no when the cashier asks if they want it). The truth is that someone who is responsible with his or her money will lie somewhere in between these two opposite ends of the receipt-saving spectrum. There are some receipts that are worth saving and others that can be tossed.
Let’s take a closer look at the types of receipts that are common and whether or not they should be kept:
Non-durable goods – These are receipts for things like your groceries and your gas, things that you purchase and use quickly and they’re gone for good. Anything that has a lifespan of less than three years is considered a non-durable good so this can also include things like clothing and paper products. In most cases, it doesn’t make financial sense to keep these receipts. You can’t use them for anything and they take up space. However, some people find that keeping them for one month is a good idea. This lets you double-check your purchases against any credit cards that you used to prevent identity theft. And it also lets you keep track of your monthly spending so that you can keep yourself to a budget. If you don’t like keeping your receipts, the alternative is to use just one credit card for all purchases so that you’ll get a monthly transaction sheet showing what you spend. It’s also usually easy to see on this statement if there are any unexpected purchases. If the card you use is a rewards card, then you’ll get an extra benefit!
Durable goods – Those things which you purchase and that last longer than three years are considered durable goods. Anything ranging from electronics to automobiles can fall into this category. Receipts for these items should generally be kept for at least a short period of time. In addition to the reasons cited above, these receipts are also beneficial in that you can use them to return items that break before their time is up. This is something that not enough people take advantage of which results in losing money that doesn’t need to be lost.
Services – When you purchase services from someone, you might get a receipt. Your dry cleaner, your equipment repair guy, your plumber … these people might write receipts and you’ll have to decide whether or not to keep them. In most cases, there’s no need to; the exception is if you can get reimbursed by work or on taxes.
Statement receipts – These are receipts like the ones that come from your ATM; they don’t reflect a purchase but they do reflect a transaction. These should be kept until you receive a formal statement so you can check the accuracy of the statement; then keep the statement and throw out the receipt.
By keeping only those receipts that you need, and using the rest as a marker to control your spending, you’ll reduce clutter in your home as well as financial stress. Remember to always keep receipts that can get you reimbursement from work or on your taxes!
