We all want to be better with money, but how do you do it? Did you know that decluttering isn’t just about color-coordinating your bookshelves or reducing your sweater collection? It even goes beyond threats to donate your kid’s toys if they don’t clean their room. Decluttering can profoundly impact your financial success and overall well-being. Let’s dive into how decluttering can transform your life and finances.
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What is decluttering
Let’s start with a quick definition. Decluttering, according to the Oxford Dictionary, is ‘to remove unnecessary items from an untidy or overcrowded place.’ If you describe your finances as ‘untidy’ or ‘overcrowded,’ you’re in the right place. Let’s explore decluttering tips that can help organize your money and your life.
Decluttering vs. Cleaning vs. Organizing
Before we proceed, it’s essential to differentiate between decluttering, cleaning, and organizing. Cleaning removes dirt and germs, while organizing arranges items in a structured order. Decluttering, on the other hand, involves actively removing things that no longer serve your goals or current season.
How to be better with Money by Decluttering
Money is a tool to build a meaningful life and achieve goals. However, to do this effectively, we need a plan. Decluttering your finances involves highlighting what’s most important to you and removing unnecessary expenses that don’t align with your values or goals. It’s about prioritizing what matters most and focusing your financial resources accordingly.
Decluttering Spending VS Cutting Expenses
The concept of decluttering your finances is not the same as cutting expenses. Cutting expenses is like going on a diet or boxing away items for storage.
Cutting expenses differs from decluttering because we’re asking a different question:
“What can I live without for a while to achieve my goal?”
However, when we declutter, we ask,
“What’s most important to me that I cannot live without? What is unnecessary in comparison to the things that matter most? What do I want to ‘highlight’ in my life?”
Tips to be Better with Money by Decluttering:
1. Imagine the Space
Envision how you want your financial life to look and function. Create a clear vision of your financial goals and priorities.
*Key Questions
What’s most important to me that I cannot live without?
What is unnecessary in comparison to the things that matter most?
What do I want to ‘highlight’ in my life?
2. Take everything out
Just like decluttering a physical space, empty your budget of unnecessary expenses. Start with a fresh perspective and add back only the expenses that align with your priorities.
3. ‘Do I want to Manage this?’
Before putting any items back in the budget, ask yourself ‘Do I WANT to manage this?’ Consider not only the financial cost but also the time value/cost.
Tip* Have you downloaded your free budget planner yet? This will give you the tools you need to get started with resetting your budget and decluttering your finances. Get it HERE for free!
4. One in One Out
Apply this principle to both physical possessions and expenses. For every new expense, remove an old one that no longer serves your goals.
Things to Declutter
Your Spending
You can declutter your spending by highlighting what’s most important to you removing unnecessary spending and expenses. There are likely things you’re purchasing, participating in, or routinely spending money on that do not in fact line up with your overall vision for your life and future. Establish a clear vision by asking yourself, “What do I want my life (or even my day) to look like?” Focus in on the things that support your vision and remove anything that does not.
Your Space
The National Institute of Health has backed the concept that having less does in fact lead to a better life (you can read the full study HERE). Declutter your space by letting go of the things that no longer serve you. All in all, when you let go of the things that no longer serve you, you make more space to highlight the things that mean the most. But what’s equally important, when your space is peaceful and serves your needs, you’re more likely to be more productive, less stressed, and make better decisions than you would in a cluttered environment.
Your Systems
Whether you created them intentionally or not, you have systems in your life. As such, you can bring so much peace and clarity to your life, simultaneously reducing stress and overwhelm, by decluttering how you go about your day-to-day life, i.e. your systems. To do this, take an inventory of your current commitments and to-do’s. What’s taking up mental and/or emotional space in your life that you could eliminate or improve your current system? Does how you’re spending your time align with the vision you established for your life? Protecting your time and what you give your energy to is essential for emotional and mental wellness.
Decluttering for a Better Life
By decluttering your finances, you’re not just managing money; you’re creating a life of fulfillment and purpose. Make intentional choices that align with your values and vision for the future.
Need more help with financial decluttering? Be sure to check out Improve Financial Wellness programs to find the support and resources right for you. >> PROGRAMS
Ready to Declutter Your Finances?
Download our free budget planner to kickstart your financial decluttering journey. This tool will help you track expenses, set goals, and prioritize what matters most to you financially. Get your free budget planner HERE and take the first step toward financial wellness.
References
https://www.verywellmind.com/decluttering-our-house-to-cleanse-our-minds-5101511
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10249935
https://www.apa.org/news/podcasts/speaking-of-psychology/clutter
