Organizing Tips for Tough Economic Times
Brought to you by Joan Kosmachuk,
Professional Organizer
and Personal Life Coach
“Simplicity tells us to ask for no more than what we need; stewardship reminds us that we need less if we take care of what we have.” —William Ashworth, 1986 (Plain Living)
As we begin a New Year, one thing seems certain and that is that at least for the moment, we are experiencing tougher economic times than we did last year. I have no great financial predictions or solutions to offer, but I do have a few organizing tips that might help you to get through the next few months.
| 1. |
Live on a Budget: Never mind what the governments are doing with their budgets, this is the year that you must (if you haven’t already) create a budget for yourself. And this is the year you must stick to your budget. If you’ve never made a budget before, here’s a simple step by step guide:
| A) |
In column one, list all your current sources of regular income.
In the second column, list all your FIXED expenses – rent or mortgage payments, utility bills, loan payments, insurance payments etc. |
| B) |
In a third column list all “Flexible Expenses”. This includes what you usually spend on groceries, clothing, household needs, entertainment, gifts, etc. |
| C) |
In order to be solvent, the total $’s in column one must be equal to or greater than the total $’s of columns 2 and 3 together. If not, you’ll need to increase column one (find additional sources of income) or decrease your expenses in column 3. (If you still can’t balance your income/expenses you’ll need to look at column 2. For example can you sell our home and purchase a smaller one to lower your fixed expenses?) |
|
| 2. |
Reduce your Debt: In times of plenty it is not uncommon for folks to buy ahead of their paycheck. However, in uncertain economic times it is best to pay with cash, not credit. And, if your financial situation remains solvent it is key that you focus on paying down any credit card debts and other loans as fast as you are able. Make this a priority expense on your budget. |
| 3. |
Know your Assets and Liabilities: This is not the time to bury your head in the sand when it comes to your finances. Make sure that you have an up to date list of all your current assets and liabilities. This is the time to get your paperwork in order so you have an informed picture of your financial situation at all times. You may want to seek professional advice to protect your assets and to reduce your liability. |
| 4. |
Sell and Trade: There are lots of ways you can increase your income or reduce your expenses by selling or trading items you no longer need. Trading in old books or DVD’s for newer selections, selling designer clothes at the consignment store, or listing unused furniture on Craig’s list are just a few possibilities to consider. And don’t overlook a trade of services with others in your community who might be open to that as well.
|
| 5. |
Give Generously: Now is not the time to hoard or be miserly. There are many people in need and it is a time for those of us with income to keep our hands open toward others. If your financial situation hasn’t changed, be sure to continue to support your local businesses and charities. Share a meal with an out-of- work neighbor, donate your extra scarves, hats and mittens to a homeless mission, purchase a few extra items for the food bank or a box of diapers and formula for your local pregnancy care center. Listen to the needs all around you and do what you can to help. |
If you need help with organizing consider getting professional input by hiring a professional organizer. To hire the services of Joan Kosmachuk, please email your request to info@simpleeffects.com or call 617-784-0707.
If you found the information in this newsletter to be of value to you, please feel free to forward it to your friends and colleagues; you'll be helping them simplify their lives.
Visit my new blog site at http://openhouse.homegoods.com/index.php/author/joank/ |
