Applying the KonMari method to your financial life for the better.

Marie Kondo has become something of an organizational phenomenon. The author of “The Life-Changing Magic of Tidying Up: The Japanese Art of Decluttering and Organizing” and star of Netflix’s “Tidying Up with Marie Kondo” employs her widely-acclaimed approach towards decluttering and tidying up personal belongings, lovingly dubbed her KonMari method. For the uninitiated, KonMari entails getting rid of personal things that are no longer useful and no longer bring you joy.

The KonMari approach can be easily extended to personal money management and financial planning. If you think about it, there is certainly plenty of need to declutter finances regularly in order to have clear organization of plans and goals.

#1. Streamline Your Bank Accounts

Do you have multiple bank accounts? Streamlining your multiple accounts are an excellent way to be more coordinated in your finances.

Often, we hold a lot of accounts we don’t need yet keep for purposes we don’t understand, like sentimental value. Consider what value this account brings to your life. Is it possible for me to survive without this account, to be happier, to live a simpler, lighter life without it? Which accounts contribute to the sense of my life?

This concept is somewhat similar to the KonMari method, which advocates organizing by category rather than by position.

#2. Declutter Your Debt

Take stock of your debts. How many do you have, how much do you still owe, so on and so forth.

It’s not uncommon for many people to have a variety of debts to handle. It gets worrying if you get into the habit of accumulating debt.

Identify the debt you do own, understand which ones you need to prioritize paying off, and get help understanding how to do it. Refinancing and consolidating your debts can help you save money, have a better view of your debt management plan, and ease your life.

#3. Categorize Your Financial Goals

Everyone has dreams, which usually need money to happen. We create our financial goals from there.

Consider categorizing your dreams by establishing short- and long-term objectives. This means deciding whether to spend on a new phone now or to delay it so you can save for something else, such as starting an education fund for your baby.

#4. Discard Spending Habits that Don’t Spark Joy

Marie Kondo’s common approach recommends organizing by category (rather than by location), starting with clothes and progressing to books, documents, miscellaneous objects, and sentimental items. Keep only the things that appeal to your heart, and toss out everything that no longer brings you joy. This practice helps you to recognize what brings you joy, which is particularly important when it comes to money–what you’re saving for, how much money is needed, and so on.

Small steps can make a big difference. Examine your spending patterns and eliminate those that don’t serve your long-term goals (for example, buying lunch out regularly).

#5. Declutter Your Time

What do you fill your time with 24/7? Are there better ways to use your time?

Time is money, or perhaps to better put it is that time is the potential of better things.

There’s a fair chance you have been cluttering your life with actions that aren’t beneficial. Perhaps these activities used to be relevant but are now less applicable to your current life goals. A decent amount could even have been sunk into a hobby that no longer brings joy to you – don’t let this hold you back from putting it aside if you need to.  It’s time to take stock of all your activities and deciding for yourself how they streamline with your life’s priorities now.

#6. Collaborate With Your Partner

Regardless of whether you’re married, cohabiting, or dating, discussing money with your partner is a must in almost any relationship. You may discover that you and your partner have a lot in common when it comes to money mindsets, or you may realize how differently you both approach money management.

Coordination with your partner is a big tenet of the KonMari system, and it’s just as critical for couples with joint expenses when it comes to financial management. Even if only one partner has a stable income or one partner volunteers to manage the majority of the financial issues, you’ll want to collaborate on budgeting, saving, and retirement planning to ensure you’re on the same page.

Conclusion

Don’t let financial decisions and habits from your past clutter your current financial situation. Take time to periodically sit down and take stock of your current choices and deliberate whether they are things you want to continue with or is it time to drop them.

 

How often do you organize and declutter your financial life?

 

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