Whether you’ve picked up her book at your local bookstore or seen her hit show on Netflix, there’s no doubt that Marie Kondo is fueling an entire movement of minimalism and mindfulness. By truly taking stock of what you have and honing in on the things that truly spark joy in your life, Marie Kondo’s methods are a phenomenon in bringing more joy into your home, along with an extra dose of gratefulness.
In addition to tidying up your closets and drawers, you can Marie Kondo your finances as well. Check out these tips to declutter your bank accounts for a more fulfilling financial future.
When Marie Kondo tackles any cluttered home, the first thing she advises her clients is to give thanks for what they have, before they begin the purge process. This simple act sets the tone for a stress-free session of decluttering and the same can be said when you Marie Kondo your finances.
No matter what your current financial outlook is, be grateful for where you are and what you have in this moment. Understand that knowledge is power and that the process you’re about to implement will ultimately open a clear path to action. You’ll be able to see what steps you need to take for credit repair, paying down debt, bolstering your savings, or whatever other goals you may have.
Start by taking a moment to pause and be grateful for the abundance and experience you have today, knowing you’re about to give yourself an even greater gift of financial security.
Spark Joy With Your Money
Marie Kondo’s main criteria for deciding whether or not to keep an item is determining if it sparks joy for you. She advises clients to hold each item and really think about how it makes them feel.
While you don’t need to physically hold every dollar you have, here are three steps you can take to make sure every aspect of your finances is working to providing you with joy, rather than stress.
1. Take Stock of What You Have
Just as you would pile all your clothes at once to see what you own, you can do the same thing in order to Marie Kondo your finances. Divide this process into at least four different sections: income, savings, credit, and debt.
Income: Look at your bank statements for the last three months and determine how much income you’ve actually brought in. If your earnings fluctuate, find an average of what you can reasonably expect each month. This number gives you a baseline for how to make your money work for your current stage in life.
Savings: Next, take stock of each savings account you have in your name. This should include both liquid accounts, like regular bank savings accounts, and long-term retirement accounts.
Credit: Another important step is to analyze your credit and see if it needs to be improved. Check your credit report for accuracy and dispute any credit errors you find.
Debt: Access each credit card and loan statement you have to truly understand the debt you currently carry. Many people don’t know the exact amount they owe, but it’s a crucial piece of information if you want to Marie Kondo your finances.
2. Organize Spending
Once you have all of those numbers compiled, it’s time to organize your spending. Look at your income and monthly expenditures to create a realistic budget. You can look at all of those bank statements you pulled to see where your money really goes.
Start by assigning budget lines to expenses you can’t change right away, like your housing payments, student loans, or car payments. Then challenge yourself to minimize discretionary expenses like food and other shopping.
In true KonMari fashion, also streamline all of your financial paperwork. Sign up for e-statements to minimize bulky statements in the mail, and create a simple filing system for the papers you do need to keep on hand. This keeps you on track and makes it easy to find the information you need.
3. Create a Long-Term Plan
Once you have a better handle on your day-to-day finances, consider your long-term goals. You may decide to focus on fixing your credit to improve your future financing opportunities. Alternatively, you might set up automated savings so that you prioritize those funds with each paycheck.
Keep the Momentum Going
Ready to make room for change in your financial life? Sign up for a free consultation with Ovation Credit to see if we can help.