In 2019, decluttering was all the rage. Marie Kondo and The Minimalists became household names. However, did you know that decluttering is also an important thing to do with finances? Many people are overwhelmed by their own financial situation because they either do not understand it or it is just…messy. One of the easiest things you can do to help yourself is simplifying your financial life.
Why this is the perfect time
It is quite simple; this is the perfect time to simplify your finances because you are most likely spending less money than usual. The whole world has slowed down. During this pandemic, a recent survey found that 59% of adults are spending less money. It is a great time to list and understand your expenses and spending habits.
Examine your lifestyle
What do you care about most? How much is that thing costing you and is it worth the potential financial constraint? Tons of people enjoy going out for dinner and trying new restaurants. If you look at your previous three bank statements, how much do spend eating out or going to the movies? If you do not take a 30,000-foot view of your spending habits from time to time, you may not realize how these transactions add up every month. This pandemic has really shown many of us what we can live without.
The easy stuff
It is safe to assume that most of us do not NEED store credit cards to places like Kohl’s, Old Navy, and Pottery Barn. This is a great opportunity to pay off the cards and close the accounts. One serious money black hole is unused gym memberships. Yes, going to the gym is a good thing, but be honest with yourself. If you are not using the membership, you should cancel it. This goes for any and all subscription-based recurring expenses. Do you get your money’s worth out of your Wall Street Journal subscription?
Make a budget
Making a budget is all about getting organized and having control over where your money goes. It is a fantastic tool. However, do not fall into the trap of monitoring every cent you spend on a daily basis. This kind of tracking is cumbersome and “cumbersome” is the opposite of what we are going for here.
Do not expect to be perfect at decluttering your finances
You will make mistakes. Everyone makes mistakes from time to time. The key is to learn from them, forgive yourself, and move on! Changing habits takes time and work, so be patient. Do not let things pile up because that is when we tend to be more mistake-prone. If you share finances with a significant other, be understanding and make sure everyone is on the same page. This will help avoid future…tension.
If you are facing financial stress, we are here to help. The attorneys at Dsouza and Strachan Law Group have the skills and experience to help you navigate financial ruin. Get out from under soul-crushing debt. Contact Dsouza and Strachan today for a free consultation.