3 Benefits Of Being Organized Mentally and Financially

Discover the benefits of being organized mentally and financially. Learn practical tips and insights for living a more organized life.

Whether you're struggling with clutter, feeling scattered, or just want to improve your overall organization, this post will offer you practical tips and insights that you can apply to your daily life. 

So, let's dive in and discover how being organized can help you achieve greater peace of mind, financial stability, and personal success.

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Clutter Has Consequences

Life has a way of stacking up on you when you're not looking. Our closets become overrun with clothes that have gone out of style. Stacks of cards and out-of-date newsletters accumulate in unattended corners of the office. Unused gadgets and tangles of wires stack up in hall closets.

While accumulating a few extra possessions here and there might seem harmless, research has found that a cluttered and disorganized space limits the brain's ability to process information, increases cortisol levels, and significantly affects mental and physical health.

But beyond just the physical consequences, clutter and disorganization can also negatively affect your financial health.

What is Clutter Costing You?

Here are just a few immediate ways clutter and disorganization may be costing you financially:

• Late fees
• Bank fees
• Damaged credit score due to late or missed credit card payments
• Higher interest rates on loans due to damaged credit score
• Tax penalties for late payments
• Misplaced checks
• Lost cash
• Lost or expired gift cards

1) Knowing Exactly What You Have and Where It Is Results in Fewer Purchases Over the Long Run

A 2017 survey conducted by Pixie, makers of augmented reality trackers, found that Americans collectively spend $2.7 billion annually replacing lost items.

Editing your belongings, reducing the clutter, and having a system for keeping everything in its designated place will save you money in the long run since you won’t need to spend unnecessary money.

Suggested Reading: Simplify Your Home and Clear the Clutter with These 5 Surprising Tips

2) Planning Ahead Reduces Premiums for Last Minute Purchases

Reservations cost more when they're made at the last minute. If you're not planning in advance, especially when it comes to travel plans, you will undoubtedly spend more on hotels and airfare.

Similarly, if you wait until the last minute to pack ahead of a trip, you will likely leave important essentials behind, leaving you to scramble to buy items on the fly that you could have already brought from home.

Planning ahead for your wardrobe will also save you a lot of money in the long run. When you have a good capsule wardrobe equipped with the basics that fit for various occasions, you reduce the chances of having to buy something at the last minute at full price. You're also much less likely to make impulse buys knowing you have what you need at home.

3) You’re More Likely to Keep Track of Bills and Less Likely to Miss Important Payments

Having a system to organize and keep track of your bills will have long-term benefits beyond just avoiding late fees. It could save you tens of thousands of dollars over your lifetime. Missing credit card payments will quickly kill your credit score, and as your credit score tanks, the interest rates rise drastically on any loans you take out in the future, like a mortgage or car loan.

But keeping track of your budget doesn't need to be complicated. In fact, the simpler your system, the better! Here are a few quick tricks to help you keep better track of your finances

1. Create a master list of bills and their due dates

2. Create a routine for managing your finances and paying bills. Whether once a week, twice a month, or once a month, figure out what works best for you and your financial commitments

3. Create a dedicated space to keep all of your bills (whether physical or digital)

4. Automate payments with online bill pay whenever possible. Automatically scheduled payments will ensure no missed payments. Just make sure there is enough in your accounts to cover the payments.

5. Clear out any old paper bills and statements. Most bills can be safely discarded after 1-3 months

Whether you're dealing with clutter or struggling to stay on top of your finances, hopefully, all of the benefits of being organized, like reduced stress, increased efficiency, and improved financial health, have given you some inspiration to start putting some of these recommendations into action.

By setting goals, creating systems, and maintaining good habits, you can achieve greater success, happiness, and fulfillment in all areas of your life. So why not get started today? 

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