How to Marie Kondo your finances.
Simplifying and organization are all part of living a curated life, hence it may come as no surprise that I am a big fan of Marie Kondo. Her premises of only keeping ‘what sparks joy’ can also be applied to your finances.
Here are 5 ways to ‘tidy up’ your finances.
1/ Use one bank - we have all our accounts and cards with one bank. That way we can use one app / online banking log in which makes keeping track of all our accounts a lot easier. If you have random accounts with multiple banks that you no longer use then it is time to say goodbye and take the time to close them down once and for all. The only caveat would be if having savings with a separate provider helps you avoid the temptation of using the money when you see those ‘must have’ pair of shoes. Some banks have the ability for you to ‘hide’ accounts so it doesn’t show on your app or main online page so this is a good alternative to keep temptation at bay.
2/ Cull your cards - I personally have 2 bank cards. One debit card linked to my personal account which is money that I can spend however I like guilt free. One credit card for our joint expenses. The balance on the credit card is paid off before the end of each month - no exceptions.
3/ Clear out your wallet - store cards and receipts tend to accumulate in your wallet over time. Take everything out and use digital forms of cards where possible and only keep ones for places that you frequently visit and know you will use. Let go of the rest - recognize that the free muffin that you are going to miss out on is not going to change your finances (I am mainly talking to myself here). Receipts should never stay in your wallet and it easiest to deal with them straight away. 99% of the time it is tossed away. If it is for an expensive item/service which we need to keep a record of, I will file it away as soon as I get home. Most shops offer to email you copies which reduces paper clutter and is easier to find.
4/ Apply ‘what sparks joy’ method to regular expenses - sometimes we can get stuck in a rut of our daily routine and not realize whether we spend money and time on something because it truly adds joy to our lives or whether it is just a habit that we have gotten comfortable with. Try going without or reducing something for one month (e.g. go one month without the manicure at the salon, have brunch once a month rather than every week) and see if you miss it or whether having it less frequently actually makes you appreciate it more. If you miss it and realize it should form part of your curated life then add it back guilt free. If you don’t miss it, then that money can go towards something more meaningful - a long term goal or something else that truly brings you joy.
5/ Label your savings - making sure different savings goals sit in different accounts with each account individually named have various benefits. It will make you think twice before dipping into them (you are less likely to spend your emergency fund on a holiday if it is called ‘emergency fund’) and it makes it easier to clearly see how you are tracking with each of your goals.
Photo by Sarah Dorweiler