Decluttering your finances

Putting minimalism to use for your money

Decluttering is in fashion, so why not apply that to your finances too? Here’s how financial minimalism can help you clarify goals, reduce stress and focus on what matters.

1 Find your motivation Minimalists live intentionally by centering their lifestyles around certain goals. But the key is knowing what those priorities are.

“If you’re not directed ... something’s going to be directing you,” said Christian Matney, one half of the couple behind the YouTube channel The Matneys, whose commitment to financial minimalism has allowed them to pursue travel, become homeowners and more.

The Matneys married in May 2016 and began mapping their goals and documenting milestones on

YouTube. At the time, both were employed at the same startup, working long hours and unable to commit much time to one of their top goals: travel. They set about simplifying — purging many belongings and financial obligations. They reduced their 30 monthly bills — including subscription accounts and donations they didn’t realize had piled up — to five.

Later, through this process, they then bought a van, moved into it and took their jobs on the road. Years later they were able to quit and become business owners themselves, focusing on their brand and building websites for other companies.

2 Determine value When deciding whether to buy, skip or toss an item, consider whether it adds value to your lives.

Here’s how to do that with financial accounts: Beyond holding your money, accounts should save you time, fees and, perhaps most importantly, stress. For 64% of Americans, money is one of the most common sources of stress, according to the 2018 American Psychological Association's Stress in America Survey.

If your accounts are stressing you out, switch, close or consolidate.

“If you can take four different accounts and move them into one, on your brain, that makes such a tremendous impact because your finances are so much easier to manage,” says Brent Sutherland, a certified financial planner and self-proclaimed “semi-minimalist.” For example, consider clearing out credit cards that no longer fit your spending habits or charge an annual fee. Consider consolidating credit card or student loan debt. Automate payments to help simplify your financial habits. And if you’ve changed jobs, see if you can transfer your old 401(k) to your new employer’s plan, or roll it over into an IRA. If your other investments are scattershot, transferring them to a single brokerage firm can help you better track your allocation and performance.

And make sure that when you do spend in the future you only spend on things that align with your purpose.