Neatly folded finances
Recently, someone recommended I read a book about sparking joy... and I’ve been folding my socks, saying thanks to my undies and interrogating everything I own ever since.
There’s definitely a certain satisfaction to be had in knowing you have everything you need and nothing you don’t. It’s the same with your finances and applying a similar process of decluttering can lead to great results.
Here are a few ways to tidy up your finances:
Track your spending and saving
Whether you choose to use multiple accounts, a phone app or a good old-fashioned spreadsheet, knowing where your money is being spent and how much your putting aside is an excellent starting point. Use a debit card for your spending, do a quick review and categorise the amounts each month. If your salary is paid into this account, you can set up a regular transfer of an amount to your saving account. Most financial gurus recommend 20% of your salary goes to savings. That’s the goal. If its 10% for you, that’s a great start and you can build on it from there. It’s a good feeling seeing compounding doing its thing and watching your savings grow. Want to see how much they’ll grow by? Go here to grab a saving calculator
Get yourself a budget
If you track your spending, that’s pretty much the foundation for your budget. Categorise the amounts into the main groups – rent/mortgage, utilities, insurances, car costs, groceries and lifestyle etc. There are plenty of free budget calculators available. Start here to get yours set up budget calculators
Set your spending goals
It’s easy to be tempted by sales, online shopping and everything else we’re bombarded with each day. Knowing how much you have available and what your spending plan is will help. Stay disciplined and stick to your limits.
Don’t reintroduce the clutter
After you’ve done all the hard work, don’t let clutter back in. Those new credit card offers, limit increases, store accounts and interest free promotions, deferred payment products… banish them all with a look that says, I know what you’re doing, you can’t fool me.
Simple but effective first steps to having finances you’d be happy to display alongside your neatly folded socks.
Leadership Architect??I help High Achieving Execs Gain Clarity to Thrive??Think Creatively for Impact??Lead Boldly and develop Meaningful Relationships??Live a Vibrant Life By Design
5 年Creating a simple framework that focuses on the outcome we want & is important to us brings great results. This applies to everything in life- & the joy comes not only from what we let go of as well as what we keep.? It is healthy to declutter every year & remain disciplined to our plan- I am with you all the way. Thank you for the analogy to your socks & undies & I trust you can see which colours you are missing & now finding the ones you need easily, John!?
Call me problem solver!
5 年I think first step for “how to save”should be “get a job” ??