Your house and your finances can both use decluttering

Published 1:30 am Sunday, January 8, 2017

It is still that time of the new year when we make promises to ourselves. I think everyone loves the opportunity for a fresh start.

And this year, I have a new challenge for you.

In previous years, I’ve encouraged a 21-day financial fast in which you couldn’t spend money on anything that wasn’t a necessity. Why not start 2017 by getting rid of things you don’t need, in your home and financial life?

For three weeks, tackle decluttering your home while also clearing away debt. This is the #NoDebtNoMess Color of Money Challenge.

Decluttering and organizing your home will help you stay focused and not let things get out of hand. Plus, you might find some hidden treasures, like a birthday card with money. Seriously, while decluttering recently I found a birthday card from my 40th birthday with $40. (Ahem, I haven’t been 40 for a while.)

During the challen ge, here’s what we’ll be doing:

Week 1: Assess the mess.

Your financial house: Take stock of your finances by organizing your paperwork and creating a net worth statement, which will assess where you are financially. How can you know where you want to go if you don’t know where you stand?

Your real house: Walk around and take note of the clutter. Literally take notes. Look inside drawers, closets, cabinets, shelves, etc. Focus on the messiest areas. Narrow down which areas you want to target. You only have three weeks, so you may not get to every area.

(Online: Here’s a link for a net worth statement you can download and fill out: http://wapo.st/2iUuUZp. And check out my Facebook page (facebook.com/MichelleSingletary) throughout the challenge for videos of my own decluttering battles and for encouraging messages.)

Week 2: Reduce redundancy.

Your financial house: Spend this week getting rid of credit cards you don’t need. Pull the statements for all your cards to figure out which ones you use the most. Compare fees to learn what you really get out of the cards and which ones you don’t really need. Don’t cancel them yet — just put them away. Also, look at your bank and credit union accounts. Do you have too many? Are you paying too much in fees for multiple accounts?

You’ll shed the financial documents you no longer need. I’ll walk you through which documents you should keep, and for how long.

Your real house: Tackle the areas you identified the first week. This isn’t a marathon. Which drawers or cabinets do you spend the most time in trying to find stuff? I have a cabinet devoted to plastic containers. But it stays messy because I have too many containers. Out they go.

Week 3: Lighten your load.

Your financial house: Create a plan to pay off your debt. I call it the “Debt Dash.” I’ll show you how to list your debts (including credit cards, auto loans, personal loans, etc.) from smallest to largest. Follow the Debt Dash process to devise a plan to be debt-free.

Your real house: Are there things you can sell to raise money to reduce your debt? What can you give away and possibly get a tax break, assuming you itemize on your tax return? The point is to look at the big things you can clear out. Furniture you don’t need. Extra dishes, pots, mixers in the kitchen. Games and toys the kids no longer use.

Week 4: The end is not here.

This challenge doesn’t stop after the 21 days. The aim is to kick start what I hope will be a lifetime mission of #NoDebtNoMess.

— Washington Post Writers Group