Over time, our lives may become messier, more complicated, and thus we become more anxious. With a lot going on in our lives, it means we have more to worry about and look after. Clearing the clutter in your life isn’t just about getting rid of old clothes and useless items around the house—it also involves clearing the clutter across every aspect of our lives.
Reducing the clutter and the busyness in your life will give you more time, space, and energy to devote to those things that matter most to you. Doing so will result in less stress and better focus on creativity, gaining more time, feeling less rushed, and bringing more happiness into your life.
The places to declutter our financial life are many, so although the examples provided in this article are few, hopefully they’re enough to spur your thinking so you can make your own list based upon areas that you think most need attention.
Writing and Other Gigs
I’ll begin with a personal change that I made in the past few years. Leaving the mind-numbing and time-sucking world of corporate work so that I could teach, write, and consult has made my life far more content and balanced than it was when I was wrangling in the politics and angling for more compensation.Many people make a good living as a freelance writer. There are a wide range of opportunities. Whether you want to write blog posts for businesses in your area, ghost-write an e-book for someone, you can make a nice living if you have the knack, talent, and flair for writing. The best part is the better and faster you get at writing, the more you can charge for your services. You could even turn this into full-time work if you truly enjoy it.
Here are others you might consider if you have the passion:
- Web development: If you can build websites, especially in WordPress, opportunities are available to take advantage of your skills.
- Tutoring—a knack for teaching.
- Music lessons—leverage those musical gifts and your skills from practicing.
- Other part-time gigs and side hustles, many of these remote (work from home).
Debt
One of the chief sources of anxiety and sleepless nights is debt. Whether it’s student loans or credit card debt, or buy-now-pay-later, or costly auto expenses—high levels of debt have serious long-term consequences, including mental disorders, depression, suicide attempts, problem drinking, and drug dependence. The debt servicing may be preventing some from the goal of home ownership or having a family. What can you do?- Reduce the number of credit cards you have.
- Consolidate your debt into one payment that is lower overall.
- Stop increasing debt, and commit to a plan of steady reduction.
- Make lifestyle changes to drastically cut discretionary expenses.
- Pay as you go—cash rather than credit cards.
- Trade out of your house and/or car into something far less expensive; maybe rent or lease.
Clothing
- Shop used.
- Shop out of season.
- Sell clothes (or donate) you don’t wear.
- Borrow or rent for special occasions.
- Avoid high-end stores and shop the low-end.
- Delete shopping apps on your phone.
- Don’t browse; plan your clothing purchases in advance; make these purchases intentional.
- Buy “crossover” pieces (work and play).
- Establish financial budget and clothing guidelines.
- Take advantage of coupons, rebates, and other discounts.
Pay Expenses Annually or Semiannually
Many service providers offer discounts for paying upfront. By paying large expenses all in one go, you can avoid the interest charges that might come with monthly payment plans. This can mean significant savings over time. Also, it will simplify budgeting by reducing the number of bills to track each month, making your financial planning easier. Knowing your bills are taken care of for a longer period can reduce the stress and give you peace of mind.Automate Your Income, Bills, and Payments
- Sign up for automatic payments with your providers.
- Use your bank’s bill pay service.
- Set up direct deposit with your employer.
- Automate your retirement contributions.
- Build your emergency fund and savings accounts automatically.
- Budget around your post-automation balances and track your bill due dates.
- Periodically review and make any needed adjustments.
Saving and Investing
Consolidate bank and investment accounts. Get rid of as much paperwork as possible. As for investing? Don’t try to time the market, and stay away from risky, speculative investments. Best option for stress reduction is to park your savings in a passive exchange-traded fund (ETF), one that perhaps mirrors the stock market, or a fund that is a conservative mix of stocks and bonds.The key is diversity—don’t put all your eggs in one basket. When you have found that investment choice, or learned of it through a financial advisor, leave it alone except to periodically check your quarterly statements. Be sure your total can quickly be tapped and cover any unforeseen financial emergencies.
Summary
Life has a way of complicating itself over time. If you’ve lived long enough, you will agree that this is a natural process that involves adding extras in our lives in abundance while failing to subtract as much to keep our balance and sanity. It only takes a few small steps to significantly simplify your finances. But the peace of mind is well worth it. Happy holidays!
The Epoch Times copyright © 2024. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
