I don't think the title of this post is a stretch. I firmly believe that clutter and having too much stuff can derail your financial goals. This is in no way an attack on materialism or the desire to have nice things. As someone that is working towards Fat FIRE, I know how much meaning we can place on the objects around us. But clutter itself can be a huge problem if left unchecked.
There were some hard lessons that came with going from a cluttered space to a more organized, functional one. Beyond the common mistakes of making impulse purchases or buying things that I thought I needed (and didn't), having a cluttered home was a top barrier I identified that impacted my financial progress. And apparently I wasn't the only one. If you want to read some sobering statistics about clutter, I highly recommend this post about how much of a problem clutter is in our society.
Clutter increases the costs of your expenses, contributes to stress, and generally makes it harder to prioritize financial goals. Below I include some book recommendations if you need to get your inspiration on, as well as some insights on how decluttering can help you on your FIRE path.
Book Recommendations
The Life-Changing Magic of Tidying Up by Marie Kondō is a wonderfully helpful read. Her category-by-category system is a great approach, especially for anybody who has not had success with the traditional room-by-room approach.
How to Keep House While Drowning by KC Davis, written by a therapist and mom who understands neurodivergence. Her approach is far healthier and more self-compassionate, and I love her reframe of viewing chores as kindnesses to one's future self.
Houseworks by Cynthia Townley Ewer. The pictures make for great "organization porn" and her systems-based recommendations are amazing for anybody trying to manage their household.
How Decluttering Can Boost Your Overall Wealth
Reducing Expenses
Maintenance costs. Consider how much money you typically spend on things like cleaning or maintaining your space. It is far cheaper (and faster) to maintain a decluttered space when using fewer cleaning supplies. If you happen to have a housecleaner that charges by the hour, a decluttered space may also cut that cost.
Reduced storage costs. A reduced need for storage space, such as storage units, garages, or sheds means that you're not spending money renting out these spaces. Especially when you consider how often the items in your storage actually get used, it might be best to let these things go.
Knowing where your paperwork is to reduce late fees. If you've ever experienced the pains of paying an overdue bill, or realized that you neglected a periodic expense like your car registration, you may have an organization problem. Pick one binder and designate it as your Important Documents folder. Keep track of documents that are paid and not-yet-paid. Collect anything that may be critical long term, such as business receipts. Speaking of which...
A lower tax bill. The first year that I began doing contract work, I did a terrible job of tracking my business expenses, which led to a hefty tax bill the following April. Now, I track all of my expenses using QuickBooks Self-Employed. (Not sponsored by them, it just happens to be the system that made administrative life so much easier). Anything that's a paper receipt I keep a copy of or snap a photo to upload to the QuickBooks app.
Fewer moving costs. The last few times I moved, I had to be very careful about what I kept and let go of because many of my items were being shipped. The more items you're shipping, the greater the sticker shock. If you want to save money on moving costs, please get rid of what you don't need. You can likely replace it at a lower cost or just go without.
Generate Extra Income
Sell any unused items that you have. Sweep through your entire living space, storage space, garage, and even your car. Find items that you do not need. Post them online and sell them.
Boosting your productivity potentially means boosting your income. As a remote healthcare worker, I've functioned in various spaces: bedrooms, hotel rooms, closets, and at one point even a Harry-Potter-style cupboard. (I made it work, HIPAA-compliant and everything!) I'm influenced by my space, and I've found that what boosts my comfort is when I can see that my things in their place in front of me. I function better, can focus on my work, and even have more energy to do more...which means more income!
Rent out unoccupied space. If you have more space, such as a spare bedroom or garage, this could offer a great opportunity to rent or sublet the space and generate some extra cash.
Potentially selling your space. When my partner and I bought our home, the home was initially advertised at about $30,000 more than what we bought it for. One of the underselling points was how much clutter and junk was in the home, garage, and backyard. While this made a great deal for us, the former owner could have definitely gotten more money had they just hired someone to clean the place out. Protect your investment. It will boost the appeal of your property and you might make a higher profit.
Reduce Mental and Emotional Stress
A decluttered space offers a sense of "ahhh". It can be difficult to concentrate on work when your space is cluttered. I've noticed that when my workspace is organized, I can better concentrate, feel more productive, and better ensure work success. And who knows what a generally more positive mindset can bring you (like more wealth-building ideas...).
A creative boost. Ever go through the process of cleaning and organizing a room, and then find that you're more inspired to work on your projects? Even when generating ideas for this blog, I find my happy place in my office when things are tidy, organized, and I don't have incomplete chores staring at me.
Mindful spending and better decision-making. When I'm in a clearer headspace, my decision-making is much sharper. And if I have to make choices or plans about items that I need to purchase for my home, such as groceries or household supplies, I'm much better able to do so when I can clearly assess everything in front of me. If you find yourself buying in excess, or even impulse spending, give decluttering a try to see if it makes a difference.
Focusing on What Matters Most
Decluttering can be a huge time saver in the long-term. Think about all the times you've spent searching a long time for something. Or about the instances where you've misplaced something, repurchased it after assuming it was lost, only to then find it in a pile of things. There are so many things that you can be doing with your time. Respect your time by respecting your space; have a place for everything.
Keeping a cleaner and more decluttered space can improve your health. If you're like me and have terrible allergies, you know what a huge difference just dusting your space makes. Also, if you're like me and terribly clumsy, you know what a huge difference not having tripping hazards around makes. 😉 Protect your immune system, protect your body, and save on potential healthcare expenses by keeping a tidier space.
A decluttered space can improve your relationships. Ever get into an argument with someone you live with over chores, mess, or clutter? Same. It's easy to play the blame game, but when you live with someone, you share the responsibility of the space. Clean up after yourself. The health of your relationships might depend on it.
Sticking to your priorities. One of the reasons why I love FIRE so much is because it forces you to get very clear about what's important to you. Thing's like having control over my time, improving my health, and being able to travel are far more important than physical objects. There will always be things I love such as books, a fancy kitchen gadget, and a fresh new journal. However, if what I'm thinking about purchasing falls outside of what I most value, it's easy to make the decision to let it go.
What are your thoughts, recommendations, or ideas to offer about decluttering?
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