Sort It ~ Professional Organizing for the Toronto Area



If You’re Underwater, Start Kicking

Yesterday, I was listening to our local news station on the radio, and they said that consumers would be spending less this Christmas because they are not overly confident about our current economic situation, and they are instead opting to pay down debt. Great! I personally know how rewarding, and freeing, it is to be rid of debt, and I think that it’s fantastic that people are beginning to take a more serious approach. Little Jimmy might be upset that he’s not getting everything on his 40 item wish list, but reality has to set in sometime.

Then, I switched over to a news station that is broadcast from the U.S. They said that 30% of homeowners are currently underwater. (Underwater means that you owe more on the house than the house is worth, so if you sold your house and gave all that money over to the bank, you would still, technically, be indebted to them). As a homeowner, that must be an awful feeling. However, I want to offer you this piece of advice: If you’re underwater, start kicking!

Don’t give up. Your home will likely go up again as the markets recover. Don’t walk away. I’ve heard of people simply leaving their house key in the mailbox (usually when faced with foreclosure) – don’t do it! Start paying down your debt. Bring your costs down, and utilize the extra money to get those debt burdens off your back. Dave Ramsey, a popular financial consultant, suggests paying down the smallest debt first. This will give you the incentive to keep going, even when the going gets tough. He’s dubbed it the debt snowball.

Now, what in the world does this have to do with organizing? Lots.

First, if you can’t find it, you’ll buy another one. Don’t spend money on things you already own. If you have a system, you’ll be able to find things when you need them, instead of thinking that you need to buy more.

Second, you need to organize your finances. If you don’t keep track of your money, you will find yourself with more month left at the end of your money (Gail Vaz-Oxlade quote). There are plenty of great software options to help you keep track of your spending habits (we use Quicken). These programs allow you to sync with your various accounts, and keep track of them all in one place. You may come to realize that you are spending 30% of your money on food (eat out much?), 45% on your housing (including utilities), 25% on your car, and 15% on clothing. Quick math drill: add it up. 30+45+25+15=115% Too much? You betcha.

Third, being organized will help you to be more efficient. Rather than making three trips to the grocery store because you forgot this, that and the other thing, be prepared. Make a list, check it twice and shop once. Gas is too expensive to be wasting it on multiple trips to the grocery store. Also, try to streamline your errands. It will save you time, and money.

Do you find that staying organized helps you save money? How?

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Comments

  1. * Beth says:

    We love mint.com, we’ve been using it for almost a year. It keeps us organized! It syncs my husbands iphone & mine so we can see all our details whereever we are. It automatically syncs our banking & credit card transactions and sorts it-it works with all major banks. It tells us where we are on our spending vs. budget any time & will email us weekly updates and notices if we go over budget on anything. Best part is the software is free!!!!

    | Reply Posted 5 years, 10 months ago
    • * sortitcanada says:

      Thank you SO much for your input Beth 🙂 Is mint.com just for iPhone (Apple products?)

      | Reply Posted 5 years, 10 months ago
  2. * Marijke says:

    Can so relate to purchasing something because I could not find it. Fortunately that’s in the past. Also, when I want to purchase a book online I put it on my wish list and think about it. Do I really want it? Than a week or two or three later I either purchase it, or remove it from my wish list. Unfortunately I forgot that a certain book was on my wish list, bought it, then several months later bought it again. Get this, the book is about organizing. Not to worry, I’m getting better

    | Reply Posted 5 years, 10 months ago
    • * sortitcanada says:

      Fabulous! Thank you for sharing 🙂

      | Reply Posted 5 years, 10 months ago


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