What Marie Kondo’s Decluttering Tips Can Teach Us About Money Management

When Marie Kondo’s decluttering philosophy took the world by storm, millions found joy in tidying up their homes. But what if you could use the same principles to sort out the mess in your finances?
From overwhelming subscriptions to random purchases that no longer “spark joy”, financial clutter can weigh you down just as much as that stuffed-to-bursting junk drawer. So, let’s dive into how Kondo’s tips can transform your money management habits in the Indian context

Tidy By Category, Not Location

Kondo suggests that one should sort clutter based on category: clothes, books, papers. Take your financial house in the same order. Go line by line, starting with one area at a time – bank accounts, credit cards, and finally, investments. Sort through documents to separate old bills from files. Consolidate accounts where appropriate. A laser-like effort will allow you to know at once what you have and what you need to fix.

For instance, do you have three savings accounts, but use only one? Close the idle ones to simplify your finances. Indian banks often charge fees for maintaining idle accounts; consolidating them can save you unnecessary costs.

Does This Spark Joy?

Marie’s most famous question—“Does this spark joy?”—works really well in evaluating financial choices. Look at your monthly expenses. Are you paying for subscriptions or memberships that you never use? Perhaps that gym membership or direct-to-home (DTH) package is no longer relevant, especially with affordable OTT platforms taking over. Cancel them.

Spend only on things that bring value or happiness, and channel more money towards meaningful goals – be it saving for the wedding of a family member, investing in education, or creating an emergency fund in case of unexpected situations, such as medical emergencies.

Thank And Let Go

Thank your items before letting them go, as Kondo encourages. Bring this same mindset to the financial decisions that you regret. Did you buy an expensive gadget in the festive sales that you barely used? Or spent lavishly on clothes for a wedding that now gathers dust? Thank these purchases for the lessons they taught you, and resolve to make better choices moving forward, instead of harbouring guilt.

Similarly, if there are lousy investments or credit cards that charge too much fee, now is the time to say goodbye. Try better options, such as fee-free credit cards or mutual funds with diversified investment types that support your financial goal.

Develop Your Financial Vision

Kondo encourages people to envision their ideal lifestyle before starting the tidying process. What does your dream financial life look like? Is it living debt-free, owning a home, or retiring early? Write down these goals and let them guide your decisions.

For instance, if your goal is to save for the downpayment on a house, consider cutting back on dining out or on discretionary shopping. If retiring early appeals to you, invest in schemes, such as the National Pension System (NPS) or Public Provident Fund (PPF), which offer tax benefits and long-term growth.

Fold Your Finances Neatly

Kondo’s technique of folding clothes might not apply directly to finances, but the principle of keeping things organised is very much applicable. Track money using digital tools.

Apps, such as Money Manager or Walnut can help you visualise spending patterns and set budgets. This will help you keep everything organised and allow you to spot inefficiencies in action.

For physical documents, sort and store them neatly. Invest in a filing system for important papers, such as income tax returns, Aadhaar and PAN copies, and insurance policies. This will save you from last-minute scrambles during tax season or emergencies.

One-In, One-Out Rule

Kondo’s “one-in, one-out” rule on items can help prevent future clutter. Adopt a similar habit for finances: for every new expense you take on, cut an old one. If you are adding a new subscription, cancel the one you no longer need.

This approach will ensure that your spending stays balanced and will also prevent your budget from spiralling out of control. For instance, if you are upgrading to a new smartphone, sell the old one rather than let it gather dust.

Celebrate Progress

Celebrate your milestones, like when you finish a major tidying session. Paid off a loan? Treat yourself to a small indulgence, but take care not to overspend. You have saved for your first solo trip or your child’s education? Celebrate the achievement. Acknowledging your progress will keep you motivated.

The Joy Of A Clutter-Free Wallet

Just like a clean house will calm your mind, clearing the financial clutter will also lead to greater confidence and control over your money. Kondo’s approach brings in much more than just a tidy space; it offers a framework for living with a purpose. Applying these tips to finances means not only clearing out the clutter, but also finding joy in doing it.