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You might have seen the name ‘Marie Kondo’ trending on social media. But who is this person?
Marie Kondo is a Japanese organising consultant who published a best-selling book “Life-changing Magic: A Journal - Spark Joy Every Day”. She teaches adults how to tidy up their lives using the Konmari method.
We can actually apply this Konmari method to our finances too!
So how do we spring-clean & organise our finances using the Konmari Method?
Marie Kondo named her method the “Konmari Method”. You need to see everything you own in order to know what really “sparks joy”.
To start with the process, you take out everything you own in the house (according to categories) and put them in one pile. The same concept applies to your finances.
Start by laying all your expenses on the table. Empty your wallets and unseal your bills. Marie Kondo makes her clients arrange all their belongings so they can see everything they own, and everything needs to fit into the shelves.
Imagine your income as a shelf, make sure all your expenses fit into it.
What to do next?
1. Start paying your bills on time
You need to get rid of the habit of procrastinating. One of the easiest ways to lose money is to pay extra for late payment charges.
Now that you’ve sorted the bills, you can start paying them on time. Set-up auto reminders to help you pay your bills on time.
2. Unsubscribe from the paid subscriptions that you're not utilising
Monthly subscriptions aren’t always a necessity; there’s a high chance you don’t fully utilise them.
Think also about the possible digital tax coming our way this 2020. Now’s the time to look at some free alternatives to these digital platforms. We made a list of those that can substitute streaming services.
3. Break down your credit card habits
Credit cards are the reason for most people’s financial problems. Here are some things you can do:
- Try to lower your interest rates. Ask your bank if you’re eligible for this.
- Apply for balance transfer credit card, which allows you to move all your credit cards debt into one single credit card. Read here to know more.
- Keep only the credit cards with most perks and benefits/reward points.
4. Consider consolidating your loans
You can also consolidate all your loans. Simply put, you apply for a loan from a bank to pay off all your different debts and then you, in turn, only pay the bank.
Find out more on how you can do that here.
5. Declutter Your Membership Cards
Take out all the cards in your wallet and lay out the loyalty or brand membership cards. You don’t need multiple cards that cover the same kind of product.
Next, discard the ones with the least reward points/perks, or the ones you don’t use often.
If you have one card for each store, it will spread your points across multiple stores/cards, and you end up with fewer points in the end.
6. Unsubscribe or Delete Premium Apps and Shopping Apps
You can KonMari your phone apps too. Unsubscribe from paid services that you rarely use. Then, delete all shopping apps that keep asking you to buy things.
These apps will keep sending promo notifications that will make you want to spend more. If you really need to keep them, turn off the notifications.
“But when I spend money, it sparks joy…”
via GIPHY
The main purpose of the Konmari Method is to look around at what you have, identify what sparks joy, and find value in them - in this case, your finances. Being organised in your
finances helps you break out of a debt cycle, and ensure you have more than enough to live on!
This article is brought to you by Loanstreet.com.my.