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Tidying Up Your Finances Using The Marie Kondo Method

by Ande Frazier

Financial Frequency. myCash

March 28, 2019 . 2 min read

She started it.

Tidying expert, bestselling author, star of Netflix's hit show, "Tidying Up With Marie Kondo," and founder of KonMari Media, Inc., Marie Kondo, has started an entire decluttering revolutionPeople around the world have been going through their homes and asking themselves, “does this bring me joy."

Kondo’s method, The KonMari Method™, encourages us to go through our belongings and decide if they spark joy or not. If they don't, then we can thank it for its services and get rid of it. Once you only have belongings that bring you happiness, you’ll finally find that nirvana of organization.

But, as a hard-working woman with a lot going on, it’s easy to get overwhelmed with Kondo’s idea of tidying up. After all, it’s not just our homes that need tidying; it’s everything in our lives.

We understand that life can be messy, and so can managing finances. So how can we “tidy up" our finances so that they bring us joy too?

Many people treat their finances as a junk drawer, where everything is thrown together, and you’re not sure how any of it works. We make financial decisions one at a time, at different times, with different people, and under different circumstances. Then, we avoid revisiting those decisions, which only makes the junk drawer more cluttered.

For Kondo, she advises that people go through their clothing first, because that’s more likely to be the least emotionally loaded thing we own. Same goes with our money. myWorth recommends going through your spending habits and eliminating anything that isn’t getting you to your goal. So, ask yourself,

Do I really need five different Spotify accounts? Or can I move to a family plan?

Taking simple steps like this will allow you to take a significant step towards organizing and decluttering your finances.

Next, go through your more significant financial products and ask yourself:

  1. Are they all working together to build wealth?
  2. Are you adequately protected from the unexpected things that life throws our way?
  3. Do you have a financial strategy?
  4. Is your money working towards your goals of retirement and will it bring you the joy you deserve?

Kondo also suggests that you should tidy up by category, not by item. This rule is perfect for organizing our financial junk drawer. To get our money in order, we can start by classifying items into the categories of Protection, Savings, Growth, and Debt.

With these categories in mind, you want to go through each of the products one by one to determine if you need to keep it, modify it, eliminate it, or replace it.

Protection - Be sure you have enough security to guard you against the unknowns.

Savings - You want to see that you have enough savings to provide a safety net to protect you from any future unknowns.

Growth & Debt - Take stock of how your wealth is growing and where you can use income in the future.

By using these categories to tidy up your junk drawer, you’ll get a clear picture of where your money is going, and how it’s working to help build your wealth.

After people have gone through the tidying up process with Kondo, they become fanatical about her method and can’t believe they lived life any differently. Once everything this organized, you can finally see the light of day, just like with your money. So, ask yourself, is your financial plan bringing you joy?