How Clutter Affects Your Finances

Take a long look around you, your home, your vehicle, your office, pretty much anywhere you turn.  We all have stuff and lots of it. There is no denying we love things. But stuff can be stressful. Most who have described their homes as cluttered tend to have higher levels of stress. Why is this? When we have too much stuff it’s harder to concentrate. Not being able to find something you need when you are trying to get yourself or your kids out the door can feel overwhelming. 

All these things didn’t just materialize out of thin air. They were purchased. I know that feeling of stress I get when I buy something I really needed only to find it already in my house a few weeks later. It’s extremely frustrating. Being well organized and decluttered can save you a lot of money. But what drives us to accumulate so much stuff?

Experts believe there are many reasons why.

• We don’t want to leave the past behind and are afraid of what’s to come.  We become attached to objects because they remind us of past moments or loved ones and by letting go of the objects we are letting go of the memories. 

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• Most of us are guilty of keeping stuff “just in case” we may need it again someday. A great rule to follow is, if you haven’t used it, looked at it, worn it, or even thought about it in a year, GET RID OF IT! 

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• Purchasing items just because they are on sale is an awful way to save. Bargain hunting for the sole purpose of finding that great deal is another way to contribute to the that pile of stuff you already have in your garage. The sensible way to bargain-hunt is to know exactly what you want before you even start looking and sticking to your budget. Having a plan is key to achieving your own personal financial goals. 

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• Clutter can just creep up on you. It weasels its way in when we are too busy to notice. A life event like a new baby, a new job, or losing a loved one can contribute to clutter.  Finding the time to organize or “clean out that closet” can seem overwhelming and unmanageable, start small, one small space at a time. Merging two households together into one home can instantly swallow your home. Taking inventory of what you have and having a yard sale is a great way to downsize and make some money. 

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• Compulsive buying can be dangerous in so many ways. Compulsive buying is like behavioral addiction, such as gambling or binge eating. It frequently occurs with other mental illness like depression, anxiety and eating disorders. Compulsive buyers often purchase things on impulse. They experience a rush of excitement when they buy. They shop to dampen unpleasant emotions but those purchase are usually followed by guilt and remorse. Paying with cash is more painful than paying with a credit card which in turn makes the purchases more rewarding but leads to credit card debt. 

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These are just some of the reasons why Americans have so much clutter, but how is clutter connected to finances? The most obvious is the cost. Everything has a price tag. The more things we are buying the more money we are spending. Recognizing the difference between needs and wants is important to a healthy financial life. Keeping a spending journal and writing down every penny being spent will give you the insight into how you are feeling while making those purchases. 

Money is personal, you work hard for it. Let it work hard for you. Identifying your financial behavior and patterns takes time and effort. Together we can dig deep and unearth what drives your financial decisions so you can create a healthier attitude that leads to better money habits. To gain success, you need to define your goal, develop a plan, take action and stick to it.

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