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For a 4’ 7” human, Marie Kondo is huge.
More than 11 million people have bought her books, and still others are binge-watching her Netflix series “Tidying Up With Marie Kondo.” People are drawn to Kondo’s philosophy: You can change your life by getting rid of all the things that don’t “spark joy.”
Want to give it a try? You don’t need to limit yourself to clothing or books or Beanie Babies. In fact, nearly all of us could stand to tidy up our finances, too. Here’s how to “KonMari” your bank accounts, credit card purchases, and investments — and maybe even spark financial joy.
Envision Your Ideal Lifestyle
As Kondo wrote in “The Life Changing Magic of Tidying Up”: “The question of what you want to own is actually the question of how you want to live your life.”
So, take a moment to reflect. Do your expenditures and money habits reflect your ideal lifestyle? Or, are you, say, spending your money on bar tabs when you actually want to travel the world? Or living in an expensive city, even though you dream of retiring early?
Think about how you can align your finances with your ideal lifestyle.
“Start with the vision of your best financial life to help you shift your mindset and shape your criteria for what sparks joy,” says Kristyn Ivey, a KonMari Consultant who co-hosts the Spark Joy podcast.
Make a Money Mountain
If you were organizing your wardrobe, Kondo would tell you to make a “clothing mountain” by removing everything from your closet and piling it on the bed. This way, you’d get a full picture of what you own — and can therefore make better decisions about what you do or don’t need.
The same goes for your finances. While the results won’t be as physically impressive, collecting a mountain of data about your money habits will hopefully have an even greater long-term impact.
The most accurate way to assemble this information would be to track your spending and income for a few months. (That’s especially true if you often use cash to make purchases.) If you’re in a hurry to KonMari, however, you can get a decent overview by compiling your credit card, bank, and investment account statements from the past year.
“The reason we ask you to gather everything in one category all together is so that you see all that you have at the same time,” says Jane Grodem, a KonMari Consultant in the Bay Area.
“This is an opportunity to consider the state of your finances with clarity, and ultimately the goal is to let go of those [expenses] that do not serve you in your current or future life.”
Decide What Sparks Joy
Once you’ve created your money mountain, analyze the information.
- Are you spending more than you earn?
- Where are you spending the most money? Did those purchases spark joy?
- Do you have enough saved to cover at least three months of expenses?
- What have you saved for your future goals?
Unlike physical objects, finances are tricky because saving money often doesn’t spark joy in the moment. So, to help you feel that joy in your bones, visualize your financially secure future — whether it’s holding the keys to your first home or treating your grandkids to all the ice cream they desire.
You can also note the financial data points that definitely don’t spark joy, like an ATM fee from your bank, a spartan retirement account, or an expensive takeout meal.
Now that you know which financial behaviors do and don’t spark joy, you can look for ways to augment or disrupt them. For instance, you can spend more money on plane tickets instead of shoes, or you switch to a fee-free bank.
According to Liv Cloud, who blogs at Funding Cloud Nine, viewing her life and finances through the KonMari lens has saved her “thousands” of dollars.
“I no longer mindlessly spend money on unnecessary things,” says Cloud.
“I have become more intentional with my spending and with the items that I bring into my home. If it isn’t something that I really love, then I simply leave it at the store,” she says.
View Your Budget as Plentiful
Kondo is all about what your woo-woo friend might call an “abundance mindset.”
“The biggest mistake people make is to focus on what to discard instead of what to keep,” Kondo told Mic. “If you focus on this, you look for flaws… and cannot appreciate the things you own. The correct mindset is to keep what you love instead of throwing out what you don’t like.”
Although she’s talking about physical items, that’s the perfect way to look at your budget, too.
When you’re deciding which expenditures spark joy, don’t agonize over what you’re cutting out. Instead, delight in what you get to keep: rent for your (hopefully tidy!) apartment, groceries for next week’s potluck with friends, a splurge-y fancy coffee every Friday.
Organize Your Financial Paperwork
Being overwhelmed by paperwork is totally normal. In fact, Kondo devotes an entire clutter category to it, with her baseline rule being “discard everything.” (What a relief!)
Of course, some paperwork, like the past three years of tax returns, must be kept. Which is why Kondo recommends three folders, each with a different purpose: currently in use, needed for a limited period of time, or kept indefinitely.
You should also make a “pending” folder for papers you haven’t had time to organize yet. And then get in the habit of recycling paper as soon as you get it, so it doesn’t ever have the chance to — horror of horrors — pile up.
Be Grateful for What You Have
Before Kondo embarks on any decluttering mission, she sits on the floor and thanks the house. Before discarding an item, she thanks it for its service. Although it might sound loony, numerous studies have suggested that gratitude can vastly improve your outlook.
So, while you’re in the midst of KonMari-ing your finances, take a step back — and be grateful for what you have. Maybe you don’t have the latest designer handbag, but you have enough to eat. Maybe you don’t have enough money to take a vacation this year, but you have a job.
“I now surround myself with things, people, and experiences that bring joy to my life. Instead of focusing on what other people have, I focus on what is going to make me happy and make me the best person I can be,” says Cloud.
This page is for informational purposes only. Chime does not provide financial, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for financial, legal or accounting advice. You should consult your own financial, legal and accounting advisors before engaging in any transaction.