Being disorganised can cause unneeded stress, whether this is searching for lost keys or being met with a surprise bill. However, organisation is not just about being tidy, it is also about reducing your mental load and building your confidence. Additionally, there is a fundamental link between physical order (what you carry) and financial order (how you earn or spend).
External Order Starts Small
When trying to be physically organised, you need to be looking at what you interact with daily. For example, having an organised handbag can translate into being personally organised in all other aspects of your life. In order to keep yourself organised, there are several tips that you should keep in mind:
1: The Daily Purge
Make it a habit to regularly empty your bag, whether this is your personal or work bag. Remove old receipts, clutter and unused items often, as this will stop the bag from becoming too heavy to carry comfortably. This can be mentally beneficial as well as physically beneficial, as having a tidy bag can reflect having a tidy mind.
2: Prioritise Quality and Function
When looking for a bag to use in your personal life or for work, it may be worth investing in a well designed or more functional item, even if this means a higher upfront cost.
3: Visual Cues
Everything in your home or bag should have its own dedicated space, and the same principle can be applied to other areas of your life.
In the same way that you can stay organised by knowing exactly what is in your bag, you should know exactly what is in your bank account.
Internal, Financial Order
Being organised financially simply refers to understanding and managing your income. Earning and managing money can be a complex system, especially if you are part of an international workforce with a global payroll arrangement. In order to manage your finances, there are things that you can do to make this process easier:
1: Understand how you are paid
Many of the financial terms used on your pay slip can be difficult to understand if you are not well versed in money management. Ensure that you understand what the deductions, taxes and net pay all mean, even if your money is managed professionally.
2: Automated savings
If you struggle to put aside money for savings, set up direct debits for savings or investments that will happen immediately after payday. Treat your savings account as a compulsory bill, and you will find that it becomes easier over time.
3: Simplify your system
Regardless of if you earn money in multiple currencies or just one, use tools like budgeting apps or a spreadsheet to track everything. Transfer everything over to this single system, as this will prevent you having to juggle numerous, confusing systems.
By tracking your current income, you will also be able to plan for future goals and budget better for upcoming expenses.
Strategic Spending and How to Invest In What Lasts
In order to be a strategic spender, you will need to possess the ability to budget, prioritise and make deliberate financial choices. Investing wisely is a key part of this, and this does not solely refer to the activity of investing:
1: The Vintage Rule Of Budgeting
When purchasing anything, apply the concept of vintage value, in that if you buy something high quality you only have to buy once. This rule can be applied to discretionary spending, and essential, larger purchases, whether this is a coat or necessary medical equipment. Focus on spending less on disposable trends, and more on worthwhile items that will last.
2: Create a Fund
Begin setting aside a small fund that will be used on future plans, big purchases or any unexpected expenses, like surprise bills. This fund should be treated in the same way that you would treat a holiday fund, by thinking of the ‘destination’ that you are saving towards.
3: Have A Regular Financial Review
Every few months, set aside an hour to look through your income, savings goals and any planned big purchases. Treat this as a financial ‘spring clean’, and check that you understand where all of your money is coming from and going to. Review your savings goals, as they may need to be adjusted if they are no longer realistic (due to changing circumstances) or if you think that your goal can be increased in order to save more.
Being well organised, whether this is in your life or finances, will help you feel more confident and at peace. It will be easier to manage a complex life (or paycheck) if you have simple, reliable systems in place to help you navigate things. You can start this by taking a small step today, such as clearing out a small space in your home or checking your latest pay slip to see if you understand how it is broken down.
