I preach and preach all these "to do's" and "ta da's," but there is one thing I know is absolutely necessary and simple and most people do it...except me. Why? Just because I am human and a penny pinching nazi. I need a shredder! Yes, and you do too if you don't already have one.
There is no reason why there is not at least one decent shredder in every household in the world. We need to start a global revolution. ...Ok. Now I am getting a little dramatic.
Shredding your personal documents at home is just as important as your bank, your doctor's office, your accountant, or anyone else who may have access to the interworkings of you, needing to shred those ever-revealing documents. Not only for organizing reasons, but for identity reasons. So, if there is one organizing chore you do for yourself, shred.
Shredders are cheap...or at least you can find a shredder for cheap. You can even get one of those shredder tops to put over an existing trash can and they can be found for around $10. There is no real need to get a fancy shmacy shredder. Just avoid being cheaper than me.
Aurora 6-Sheet Strip-Cut Paper Shredder - AS618SB (From Target)