I have a file box. When it get full, I go through and slim it down. The only things that aren't in the file box are the mortgage paperwork because it's legal size and doesn't fit in the box.
Tax records I keep for 7-10 years. Mortgage paperwork I keep at least as long as I have the house. I was involved in a lawsuit, I will keep those papers at least 7-10 years. Auto loan/title/registration and maintenance records I keep as long as I have the car. Bank statements get hole punched and put into a 2 inch binder. When the binder gets full, I thin it down, keeping a year.
Regular bills - many of them are electronic and available online. The ones I get in paper are relatively few, and get put into the file box. When I go through the box, I generally keep a year's worth.
Now, it's just me. I'm not married, I don't have kids. Which limits the amount of paper. So my practice of wrangling the paper as it comes in, then letting it sit around generally works fine. Others who have significantly more paper inflow may need less lazy approaches.