The season of Spring is the perfect time to declutter your home and possessions. But did you know it’s also a great time to freshen up your finances too? In fact, decluttering your possessions will provide you with extra cash to get ahead and pay off debt.
While ‘Declutter’ has become a bit of a buzz word, the concept is universal: reduce and simplify for greater freedom and space. Read on for some simple tips to bring more simplicity, financial freedom and space into your life this Spring.
Declutter your Home
- Before you begin, set an intention and the feeling you want to create, such as a calm or spacious home.
- Set a goal to gradually declutter your home, garage and car over the season of Spring. Over three months embark on a mission to curb the clutter and eliminate the excess.
- Bring a level of mindfulness into your practise of decluttering. You may discover the things you thought you needed at the time of purchase really don’t hold the same value or significance as they once did.
- Consider how many of the items strewn across your home have contributed to debt or overwhelm. Furniture bought on impulse, high end electrical gadgets, expensive clothes or shoes you never wear.
- Aim to sell anything that no longer sparks joy or has practical use for you or your family. Take photos and list items for sale on eBay, Gumtree or Facebook Marketplace. Alternatively hold a garage sale, car boot sale or set up a market stall. You’ll be surprised to discover how much cash has been left untapped, trapped in the form of excessive consumables.
- Use any money you make to pay off any existing debt, ideally pay off debt with the highest interest rate or loans with the lowest balance.
- If you can’t make money from items you no longer need, donate or throw away by the end of the season.
Declutter your Finances
Consider ways you can develop a more mindful attitude towards spending. Unsubscribe from marketing emails and avoid ‘browsing’ in shopping centres to kill time. Seek out ways you can actively and consciously save money. - Cancel subscriptions, shop around for a better deal with insurance, phone, internet and electricity providers. Shave your daily spending habits and funnel any savings into paying off debt.
- Turn saving money into a motivational game. Let the dopamine levels increase as you watch your debt dissolve into financial freedom.
- Collect spare change from your pockets and wallet at the end of day and fill a piggy bank. Each month deposit into your account and use to further reduce your debt.
- Find a second part time job babysitting, dog walking, mowing lawns, selling ice cream, or serving coffee. Keep these extra earnings exclusively for reducing debt or building your savings. Set yourself a savings goal with a specific time frame. You might only need to commit to a few extra hours or work a week for 6 to 12 months. It could make all the difference to getting ahead financially once and for all.
- Once your debt is gone seek ways to invest your savings to fuel further growth. Financial planning can help to build a more stable and secure financial future. Speak to a financial adviser to find out the best solution for your individual situation.
- Simplify your finances by closing any unused bank accounts, consolidating debt and rolling over superannuation into one. If you have multiple credit cards, cancel all but one and ask to lower the limit to help keep spending in check.
- Consider opening up a high interest account devoted to saving money such as the Australian Mutual Bank Savings Motivator Account.
The process of sorting through your wardrobe or garage might not initially feel like a radical or deeply transformative act. However, when done with mindfulness and attention to detail, decluttering might just rewire your spending and reinvigorate your savings strategies and that is bound to put a spring in your step!
Alison Gallagher is a freelance writer, resourcefulness expert and owner of aromatherapy business Alyssum Alchemy. She has been featured in various publications including Stellar Magazine, Australian Health and Fitness Magazine, and Cleo Magazine. Alison is particularly passionate about sharing practical tips on how to live simply, sustainably and seasonally.
