Experts: How To Start 2024 With Less Stuff and More Money
A good purge isn’t just a satisfying way to get over a holiday clutter hangover and start the New Year feeling fresh. Clearing unwanted and unneeded items from your home makes financial sense, too — and not just from making a few bucks by selling off your old things.
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Experts say that if done with the right strategy and mindset, getting rid of stuff can lead to better financial decision-making habits that will keep money in your pocket all year long.
Proper Purging
According to Todd Christensen, an accredited financial counselor with MoneyFit and author of the book, “Everyday Money for Everyday People,” a truly effective decluttering project should start with a plan. Rather than a frenzied purge, it should be approached with intentionality and thoughtfulness around prioritizing what’s really important.
“We have to make the decision upfront and ask ourselves, ‘What do I need? And what do I want that comes after my needs? How am I prioritizing those?’ Then attacking them from there,” Christensen said.
Making a list of our needs and wants in order of priority can serve as our decluttering guide of what we should keep and what we can live without. Christensen also suggests a staged approach to decluttering with different bins: A holding bin and a final bin. The ‘holding bin is where you can put things you’re on the fence about, and leave them there for a month.
“If you wake up in the middle of night and can’t sleep because you’re worried that you won’t be able to do without it, maybe take that back out,” he said. If not, then it moves into the final bin and out it goes.
Do this on a weekly or monthly basis as part of a decluttering routine. This kind of intentional decision-making can keep people from getting rid of a bunch of stuff they’ll just go out and replace later — for more money.
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To Sell or Not To Sell?
Selling your unwanted goods can help put some cash in your pocket. But Vourneen McElwain, a minimalist and professional declutterer, cautions people of the temptation to make a habit out of selling because of the cyclical pattern it creates.
“You may need to sell something quickly to pay a bill and that’s absolutely fine. But when it comes to selling decluttered items just so you can recoup some of the cost, only to go out and buy more stuff, where is the lesson in that?” McElwain said. “My feeling is that once you commit to a purchase, you’re making a conscious decision to part ways with your money. But when you’re constantly buying and selling, it can become a never-ending cycle of temporary satisfaction and financial loss.”
She continued, “I’ve seen people spend six hours negotiating on Facebook Marketplace just to sell a $10 dress. Your time is worth so much more than that. So, instead of constantly trying to make back some money from old purchases, try to focus on making smarter decisions about what you’re spending your hard earned cash on in the first place. This is the best way to ensure it stays in your pocket.”
McElwain suggested donating or gifting items to others who will find them useful instead, which has the effect of both spreading kindness and keeping materials out of landfills.
Don’t Re-Clutter
How can we get into a more minimalist mindset to avoid overspending and re-cluttering? Our experts agree that it’s all about staying true to your priorities and making mindful purchases.
“There’s no point in getting rid of a load of things, only to fill your house up again,” McElwain said.
Before making a purchase, she goes through this checklist of questions for herself:
Do I need this?
Do I really want this?
Can I afford this?
Do I already have something similar?
If I get this, am I happy to declutter something else at home?
“More often than not, I end up not making the purchase,” she said.
McElwain also finds that downsizing to fewer things, large and small, means saving money on their upkeep. “Only have one car? Then only one car needs to be serviced or repaired,” she said. “Fewer appliances in the kitchen means less money spent on maintenance or replacing broken items, and more in your bank account. And a smaller house means less money spent on utilities and property taxes.”
Another favorite tip: Ditch the subscriptions.
“It’s not just things that need decluttering, it’s unnecessary subscriptions too,” she said. “One not-so-secret secret that most minimalist people live by is ditching the likes of Netflix, Amazon and unused gym memberships. Cutting out these kinds of expenses can free up more money to put towards your financial goals.”
More Money for What Matters
Once you’re in the habit of spending according to your priorities, Christensen recommends not leaving your unspent money in a checking account. “Human nature says you’ll spend it by the end of the month,” he warned.
Instead, set up automatic transfers of a chosen amount into a savings account — but not just anywhere. Christensen said, “If we get it into a savings account and don’t see it, we will adjust to whatever is left. But the trick is, you’ve got to find a savings account you can’t get to too easily.”
For his savings, Christensen chose a credit union account without a debit card whose nearest branch was decidedly inconvenient to where he lives. “To go get cash out, I actually have to drive there, get out of the car, and walk 100 yards into the branch,” he said. “It’s there for emergencies, but it’s not that easy to get to.”
As for transforming these New Year actions into durable habits, Christensen is a firm believer in the power of sharing your plans with a friend. Whatever your goal is, write it down, share it with a family member or friend, and then check in with them on a weekly or monthly basis on your progress.
“We’re really good at justifying away something that we don’t like, even if we have great intentions,” he said. “Creating that personal accountability is key.”
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