How long should you keep financial records, and why might you need to keep your financial records other than for tax purposes?

Publically, the IRS says you should keep your financial records for 3 years because they can audit you for up to 3 years after the time. However, they are allowed to go back as far as 7 years, so I recommend keeping your records for 7 years.

There are several reasons you may want to keep your financial records. One reason is if you wanted/needed to sue someone later on about a product or other financial reason, you would want to have the record that shows how much you paid. Another reason is if a bank or someone had an error with your finances, you would want the evidence that shows how much you should have.