The amount of records and paperwork you should keep is actually more limited than you might think. Here is advice from Money Adviser (a publication of Consumer Reports) on what to keep and for how long, and what to get rid of... 
 
Which paperwork to keep:  

• Tax returns, keep forever  
• Tax return documentation, for seven years 
• Contracts, forever  
• Real estate records, forever  
• Last pay stub of a job if you leave that job  
• Last pay stub of the year until you reconcile it with your W-2 
• All mortgage payment checks (statements), until mortgage is paid off 
• All student loan payments, until loan is paid off 
• Car loan payment stubs, until the car is paid off 
• Cancelled checks, for 7 years  
• Bank deposit slips, until you reconcile your statements  
• Bank statements, until a calendar year; store with tax returns if they will be used to prove deductions  
• Home improvement records, ownership period plus 7 years  
• Investment records, shred monthly and quarterly statements as new ones arrive; hold on to annual statements until you sell the investments 

Which records to toss:

• Credit card statements that are more than three years old 
• Past insurance statement 
• Old utility bills, except the most recent one from your old address if you've moved 
• Recently paid bills (statements), once you have something saying they've been paid
  
  

For additional info, See BankRate.com's list for more advice from the IRS on what to keep for tax filing purposes.

Source: Money Adviser