As time passes, our lives may become more chaotic and complex, leading to increased anxiety. The more things happening in our lives, the more we need to worry about and take care of. Clearing the clutter in our lives involves more than just getting rid of old clothes and useless items; it also includes organizing various aspects of our lives.
Reducing the chaos and busyness in life can give you more time, space, and energy to focus on what truly matters. Doing so can alleviate stress, boost creativity, provide more leisure time, reduce rush, and bring more happiness.
When it comes to organizing our financial lives, there are numerous things we can do. While this article only offers a few examples, it is hoped that they can inspire you to tailor your own list based on the areas you need to pay attention to.
I’ll start by sharing a change I made a few years ago. I left my numb and time-consuming corporate job to pursue teaching, writing, and consulting, which made me feel more fulfilled and content than when I was caught up in workplace politics and chasing higher pay.
Many people thrive as freelance writers. The opportunities in this field are vast. Whether writing blog posts for local businesses or ghostwriting e-books for others, if you have writing skills, talent, and inspiration, you can earn a decent income through writing. The better and faster you write, the higher your fees. If you genuinely enjoy writing, you can even turn it into a full-time job.
If you’re interested, you could also consider the following opportunities:
• Web development: If you can build websites, especially using WordPress, there are numerous opportunities to monetize your skills.
• Tutoring: If you have teaching skills.
• Music lessons: Utilize your musical talent and skills honed through practice.
• Other part-time and freelance opportunities, many of which can be completed remotely from home.
Debt is one of the leading causes of anxiety and insomnia. Whether it’s student loans, credit card debt, installment payments, or high car expenses, heavy debt can lead to severe long-term consequences such as mental health issues, depression, suicidal tendencies, alcoholism, and drug dependence. Repaying debt can hinder some from achieving their goals of buying a house or starting a family. So, what can you do?
• Reduce the number of credit cards you own.
• Consolidate your debts into a single lower payment.
• Stop accumulating new debts and focus on gradually reducing existing ones.
• Change your lifestyle by significantly cutting unnecessary expenses.
• Use cash instead of credit cards.
• Trade in expensive housing or cars for more affordable options, or consider renting.
• Purchase second-hand clothes.
• Buy out-of-season clothing.
• Sell (or donate) clothes you no longer wear.
• Borrow or rent special occasion clothing.
• Avoid high-end stores and opt for cheaper outlets.
• Delete shopping apps from your phone.
• Shop with purpose instead of impulse buying, plan in advance what clothing items to purchase.
• Buy versatile clothing that can serve both work and leisure purposes.
• Establish financial budgets and clothing purchase guidelines.
• Utilize coupons, cashback, and other discounts.
Many service providers offer prepayment discounts. Paying a large sum upfront can help avoid interest on monthly installments, resulting in significant savings in the long run. This also streamlines your budget management since you have fewer monthly bills to worry about, making financial planning easier. Knowing your bills are already settled for a period alleviates stress and gives you peace of mind.
• Set up automatic payment agreements with service providers.
• Utilize your bank’s bill payment services.
• Have your employer deposit your salary directly into your bank account.
• Automate your retirement savings plan.
• Establish emergency funds and automatic savings accounts.
• Create budgets based on balances post-automated payments and track bill due dates.
• Regularly review and make necessary adjustments.
Consolidate bank and investment accounts to minimize paperwork as much as possible. Regarding investments, avoid trying to time the market, stay away from high-risk or speculative investments. The best stress-relieving option is to invest savings in passive exchange-traded funds (ETFs) that may reflect the stock market or a conservative mix of stocks and bonds.
Diversification is key – don’t put all your eggs in one basket. Once you’ve settled on investment choices or understood suitable solutions through a financial advisor, refrain from frequent adjustments; simply check quarterly statements. Also, ensure the total amount of funds you can access quickly is sufficient to handle any unexpected financial emergencies.
As time goes by, life will inevitably become more complex. If you live long enough, you’ll realize it’s a natural process; we keep introducing many new things into our lives without proportionately eliminating excess, leading to imbalance or anxiety. In reality, taking a few small steps can greatly simplify your financial life. The inner peace that comes with this simplification is truly worthwhile. Wishing you a joyful holiday season!