The KonMari cleanup for your finances:
Netflix star Marie Kondo is famous for her KonMari method to help you declutter your home and day-to-day life. What would happen if we suggested using her method for your finances? What if every time you swiped your card or hit “Place Order” online, you paused a moment to decide if it really would “spark joy” for you?
In a time where we crave the need for simplicity in the midst of the hustle and bustle of everyday life, the KonMari method could be just what you need to de-clutter and simplify your finances. We suggest that by following a few tips based on the KonMari method, your finances CAN spark joy in your life, so you can enjoy the things that really matter.
Compartmentalizing and categorizing your expenses is the first step to “tidying” your finances. Take a big picture look at how you’ve spent your money over the last 30-60 days and pick apart each transaction and put it into a category. Then, you can see where your money is going and your spending behavior. Categories can include things like living expenses, groceries, bills, loan payments, savings, and of course a “fun” category.
Clean it out.
Once you’ve seen how you are spending your money, you might be ashamed (or proud) of how much you spent at Starbucks or Target over the course of a month. Do you have a Hulu account you are paying for, but rarely use? Cleaning out your subscriptions is a good start. We aren’t saying you should cancel Netflix (heaven forbid), but maybe you can split a family account with a few friends to cut down monthly expenses.
Setting money aside for savings is a struggle we all face. Rather than spending it all when your paycheck hits your account and feeling like you have little or nothing left to save, set a certain amount you want to commit to saving with consistency. Setting up an automatic transfer to your savings when you get paid is a great start. This way, you do not have time to think about what you could have purchased with that money.
Safety Net fund.
We’ve all heard of the “emergency fund”, and you may think this is unattainable or unnecessary. Without one, an unexpected expense could create a huge mess, especially if you are unprepared to cover it and have to go into debt. This will be the “joyful guarantee” for your finances because it will save you stress and a headache in the long run.
Let’s get real about what actually sparks joy when it comes to spending or saving your money. Take two seconds to ask yourself if that purchase is a wise investment and will create lasting joy, or is it to satisfy a momentary high? Make it a habit to say no to things that don’t add true value to your life. Your finances will thank you!
Applying the KonMari method to your personal financial situation is likely to change your perspective when it comes to spending and saving. We want you to live your best life and once you are ready, you can begin crafting a legacy that will bring joy for years to come!