Can Clutter Include My Finances? 8 Strategies for getting Simply on Track.

April 27, 2012 at 1:52 pm (simple frugality) (, , , , , , , , )

So as I wrap up April having made great progress in further decluttering my basement and garage I have been discussing May’s challenge with my writing partner Asta. Could it be that our financial lives can become cluttered and need organizing as well?

So I set off to explore this idea in my own life. For starters I have two credit cards. One I am paying off and has beacoup Skymiles I will be using this year to visit friends in far away places, the other has a zero balance and is from my all time favorite bank USAA. I don’t need two cards so what to do? The Delta Skymiles card is the oldest and financial advisors tell us to keep our oldest accounts open for maximizing our credit rating so,
1)  I will close the second card account.

Next I have 2 savings accounts. Again one is with my bank and the other an online account where I have an investment account.

2) Close second savings account online.

I have a small cash savings and yet still have credit card debt.

3) Take half of my savings and apply it directly to credit card balance today.

I tend to spend cash on hand without a whole lot of thought.

4) Carry a notepad to record all expenditures for the month of May to see where the leaks are in my spending.

I want to set up a regular savings plan after the credit card is paid off to realize my goals of overseas travel, and purchase of a sailboat.

5) Create a written goal ledger complete with amounts needed by specific dates for next 5 years. Back track to calculate how much money per month will be required to save to meet these goals.

I still have items I own (or rather they own me) which are not leading me to my purpose or supporting my goals.

6) Determine the place place to sell these items be it Ebay or Craigslist  and take photos and get them listed this month and put that money directly towards debt payoff.

Now that I have decluttered much of my household I will need to review my insurance needs.

7) Contact homeowners insurance company for review.

I like to get a massage at least once a month to maintain my health and sanity. Some months I get more than one. I also like to get a monthly pedicure. I have calculated the savings if I schedule them every six weeks instead of four. The money saved will be $260. 00 annually. Now this may not seem like much but it is 2/3 of the cost of a Japan Rail 7 day ticket or the cost of 3 nights in a 3 star hotel in a small but, scenic European town.

8) write on calendar the weeks for massages and pedicures for the year and bank the savings at the beginning of each month after debt is paid in full.

So I am off to put these ideas to work for me and I will follow up with how it all went in May.


1 Comment

  1. Asta Lander said,

    I can’t wait to get started! Asta x

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