Being Organized Will Save You Money
Being organized will help you be more successful in all aspects of your life including with your finances. I’m probably a little too good at saving receipts — and storing them in my purse!
But having a hold on money matters in your life will save you some cash. Professional organizer Korinne Kubena Belock tells us why it works.
Six Financial Incentives to Get Organized
by Korinne Kubena Belock
Of the many benefits to getting organized, like lower stress levels and increased productivity, one of the most compelling reasons is the financial benefit. In almost every organizing session with a client, we discover uncashed checks, cash, and even unused gift cards that clients have long forgotten. Talk about a good feeling! Here are six other reasons to get orgso you can have an easy, stress-free retirement!anized:
1. Taxes – It’s like tax season is always around the corner. Recently in a meeting, my accountant said something that really caught my attention. He said the easiest way to save money on your tax preparation expense is to make sure your tax files are organized. That goes for W-2s, 1099s, receipts, invoices, donations to charities – everything! And in case you’re audited, having organized tax files for the previous seven years will save you money and stress in the long run. A final added tax benefit to decluttering and getting organized is that you can get a tax deduction for items you donate to charity. Just remember to save the receipt.
2. Duplicate Purchases – How many times have you run to the store for batteries only to realize a week later that there was a whole stash in the kitchen? Or better yet, you can’t find that black sweater and decide the dry cleaner probably lost it. Wrong! Check the far reaches of your closet. If you are organized and all your possessions have a home, you won’t find yourself purchasing duplicate items.
3. Emergency Situation – Not to be grim here, but what happens if you are robbed, or your building has a fire or water damage? You suddenly need to file an extensive insurance claim, but you realize you have no real sense of which possessions were lost or damaged or the cost associated with either. Getting organized is the answer. To save money and grey hair in the long run, create an inventory of your most valuable possessions like fine art, electronics, furniture, and jewelry, including photos of the items, manufacturer information, and receipts to document date and location purchased and price paid.
4. Home Sale – Earlier this year, the New York Times reported that clutter and disorganization could take five to 15 percent off the sale of your home. No one finds a cluttered space appealing, so if you’re in the market to sell, get organized first. Once you’re getting a little older, you may consider equity release. Plan ahead and use a free calculator to check how much cash could be released from your home. I recommend doing this in advance so you can have an easy, stress-free retirement! It’s not even just retirement that you should be thinking about (although this is good for your long term plan), for the time being it might be worthwhile thinking about all the other expenses that you have, for example your food bill. Or what about your car insurance? Have you made sure that you have the cheapest (but still good) car insurance? Why not take a look at someone like Money Expert who can provide you with this type of insurance. This will help you save some money, so that by the time you retire you will definitely have enough!
5. Real Estate – New York City’s residential real estate is some of the most valuable per square foot in the world. And a common reason people move is because they need more space. If you could declutter and organize your possessions to make more space in your current apartment, thus avoiding the need to move to a larger apartment, imagine the money you would save.
6. Late Fees – Organizing your bill paying is the fastest way to get control of your personal financial situation and to avoid spending additional money on late fees. Enough said!
Korinne Kubena Belock is the owner of Urban Simplicity, a professional organizing company based in New York City. Prior to founding Urban Simplicity, Korinne was a political organizer for ten years and worked for Mayor Mike Bloomberg, as well as elected officials from The United States Congress to The White House. To learn more about Korinne and Urban Simplicity’s services for both homes and businesses, visit http://www.UrbanSimplicityNYC.com.
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Keep some of these records some place other than your home. I have a xerox of everything in my wallet in a file at my desk. It’s there in case the wallet disappears – I asked staff that were traveling to do the same thing. At least once this has come in handy
That’s a great idea actually — I’m going to have to do that myself. Thanks for reading!
Great tips!
Hi Erin — so glad you found them helpful! Thanks for reading!