Decluttering your money plays a vital role in Personal Financial Planning

DECLUTTERING YOUR MONEY PLAYS A VITAL ROLE IN PERSONAL FINANCIAL PLANNING

When it comes to personal financial planning, regularly decluttering your finances is a powerful tool that can help you save money, plan for the future and gain control of your finances.

When we think about decluttering, it’s rarely in the context of money. We’re far more likely to picture a spare room, a kitchen drawer, the attic, or even computer files that haven’t been touched in years.

WHAT IS FINANCIAL DECLUTTERING?

Decluttering is simply about removing what no longer serves a purpose.

In our homes, that might be clothes we never wear, drawers we avoid opening, or piles of paperwork we keep meaning to sort “one day”.

What’s interesting is how often people describe the same feeling after a good clear-out: a sense of relief, calm and mental space. When physical clutter is reduced, the environment feels easier to be in, and our minds often follow.

So it’s not a big leap to see why financial decluttering can feel just as powerful.

By financial decluttering, I mean:

• looking through all your finances – bank accounts, credit cards, statements and so on
• making sure you recognise everything
• sifting out anything unnecessary
• minimising the number of transactions
• checking around for better deals
• neatening everything up
• creating simple processes that make things easier to track, follow and manage, and avoid things building up again

How much of this do you do regularly?

HOW TO DECLUTTER EFFECTIVELY

The thought of decluttering a room fills me with dread. Many people struggle with knowing where to start or what process to follow. This is where a professional declutterer (like Oakes Organising and Decluttering¹) can really help.

The same applies to financial decluttering, so let’s look at a good place to start.

1. Make a list of all your bank, savings, investment, pension and credit card accounts.
2. Gather statements for the past year (yes, you read that right – a full year really is the best way to do this!). Many online banks allow you to create statements for a bespoke time period, so you’re not printing 12 statements per account. Pension and investment statements are often annual anyway.
3. Go through each statement and make sure you recognise everything. I prefer to do this digitally to avoid creating physical clutter, but some people like paper copies and a highlighter – do what works for you.
4. If there’s anything you don’t recognise, investigate it until you’re clear, even if that means calling your bank.
5. The first time you do this, you’ll often find something you no longer use, or something you didn’t realise was still charging you. These are usually simple and satisfying to switch off.
6. Once you’re clear on what everything is for, take another look and ask yourself whether you really need it. Just because something is being used doesn’t mean it’s good value for money.
7. Then check whether you’re paying the best price. Comparison websites can help, but sometimes it’s as simple as picking up the phone and asking what deals are available or whether charges can be reduced. This can be surprisingly effective.
8. Once you’re comfortable with what’s left, maintaining this sense of order is key.

HOW TO MAINTAIN DECLUTTERED FINANCES

Decluttering your finances once is helpful, but keeping things tidy and organised over time is where the real benefit lies.

There are several ways you can do this:

1. I like using round-up accounts to keep a regular eye on spending. These round each transaction up to the nearest pound and move the difference into a savings or investment account. This encourages awareness of spending while boosting savings at the same time.
2. There are also some excellent apps available, from budgeting tools to banking apps, that can help you stay organised.
3. You may choose to use different bank accounts for different purposes. A word of caution though – if you’re someone who easily loses track, this might not be the right solution. For others, it works brilliantly.
4. Regular reviews are essential. Add a monthly reminder in your calendar to check your statements and accounts. Once it becomes habit, it feels far less like a chore.

WHY IS FINANCIAL DECLUTTERING IMPORTANT FOR PERSONAL FINANCIAL PLANNING?

Financial decluttering plays a vital role in the financial planning journey and can help achieve so many things.

One of the most obvious benefits is saving money and avoiding waste. Even the most careful people often find areas where they can reduce outgoings. That freed-up money could go towards your pension, savings goals, or simply something enjoyable for yourself.

It also allows you to step back and see your finances from a bird’s-eye view. This makes it easier to spot gaps or issues. Perhaps spending is higher than expected, savings aren’t growing as planned, or a loan isn’t reducing as quickly as it should be. The clearer your finances are, the easier it becomes to create and stick to a financial plan.

Sadly, financial crime and scams are on the rise. Having a clear handle on your accounts makes it much easier to spot anything unusual quickly and take action.

I’m passionate about financially empowering people and helping them gain control of their finances to support long-term financial wellbeing. Decluttering is an important part of that, helping to reduce stress, build confidence and create clarity.

Taking control of your finances can also encourage more open conversations about money, whether with a partner, family member or trusted professional. The more we talk about money, the more confident we tend to feel and the more likely we are to take positive action.

A SIMPLE FINANCIAL DECLUTTERING MANTRA

If there’s one thing I’d love you to take away from all of this, it’s that financial decluttering doesn’t have to be complicated.

Whenever you look at any money going out of your account, ask yourself three simple questions:

• Do I recognise it?
• Do I need it?
• Can I get it cheaper?

If the answer is yes, move on to the next question.

But if the answer is no at any point, that’s your cue to take action. Cancel it, change it, switch it, or remove it altogether.

Think of it as cleansing your finances of things that no longer serve you.

Repeat this little exercise regularly and you’ll gradually create finances that feel clearer, calmer and far more in your control.

WHERE DO YOU GO FROM HERE?

I completely appreciate that this is easier said than done. If this feels new, there’s no need to dive in all at once.

Break it into smaller chunks to avoid feeling overwhelmed. You might start with the easiest statement to access, or simply review your top five outgoings.

Build from there. As you become more familiar with the process, you’ll find yourself moving through it much more quickly.

And yes, the sooner you start, the sooner it becomes a habit, and the easier it feels.

If you do feel overwhelmed, or if decluttering highlights gaps you’re unsure how to address, you’re not alone. Financial professionals, like myself, are here to help.

The more people who financially declutter, the better. Please feel free to share this blog, give it a go, and let me know how you get on – your successes, frustrations and learnings.

Happy decluttering!!

Take care,

Naomi

**https://oakesorganising.co.uk/

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