“Konmari” is a Japanese art of decluttering and organizing things created by Marie Kondo.
Organizing things is not much of a difference in organizing your finances and the most basic thing you really need to do in organizing your finances is listing all your income and expenses to determine your cash flow. Cash flow is your income and expense that goes in and out in one month.
To really organize your money, finance experts recommend an ideal expense distribution to keep your finances intact. When you receive your income it is good to separate them immediately into categories.
Major Categories and their suggested percentages are:
- Savings 20%
- Necessary Expenses (50-55%)
- Long Term Saving For Spending LTSFS – 10%
- Education (10%)
- Play (10%)
- Give (5-10%)
Let’s break down each categories:
These are the expenses you should only be looking at. Only in their allotted percentages. If some things go beyond the percentages, ask yourself:
Does this spark joy in my life when I buy this one?
If yes, then, you probably need it. If not, then maybe you should stop buying it.
Once you categorize your expenses and actually list them down, you will get rid of a lot of unnecessary purchases that only file up in your homes or make you gain unwanted weight.
Organizing your stuff are also one way in organizing your finances, here are the top reasons why:
1. You don’t waste money
People with too much unorganized stuff waste money by re-purchasing things. It is sad when you looked into your stuff to find out you already have it, but you have already bought another one. Such a waste of money.
2. You increase your efficiency
If you have organized things and drawers, you know where to get it the moment you need it. How much time may be wasted trying to hunt something down. The flow of your work and actions will be more efficient. Wasted time is wasted wealth.
3. You are more relaxed
Having an organized environment will manifest itself from inside and out. Disorganization will absolutely affect us in both our health and emotions. People with organized things report less anxiety and depression.
4. Create Social Contribution
Instead of throwing everything, you can recycle it, saving money again. Or you can donate it to someone who might be needing it. The world will have less garbage as well.
Organizing your finances and things go hand in hand. Always remember that when you organize your finances, you are also organizing your future, your retirement and your entire life.
Whenever you buy something, ask yourself:
Does this spark joy in my life when I buy this one?
For Your Financial Health,
Read More:
- 52-Week Money Saving Challenge for those with Inconsistent Income/Expense
- What Type of VUL plans do you have? Protection-focused or Investment-focused?
- Doctors’ Loan: When To Borrow Money?
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