Joy is going from clutter to calm with your finances. Did you know that an unorganized financial life can lead to less money in your pocket? And no dog mom wants that.
Organizing your finances gives you clarity in your financial situation as well as saves you time and energy. Most importantly, organizing your finances helps you keep track of how much money you have and work towards your financial goals. So, this blog post is dedicated to helping you declutter and organize your finances.
WHAT DOES A CLUTTER FINANCIAL PLAN LOOK LIKE?
Let me break it down. A cluttered financial plan is a plan that’s disorganized and lacks clarity. It can show up in multiple ways, such as unorganized financial records, untracked spending for your dog, hidden or forgotten pet subscriptions, and even overwhelming debt.
A cluttered financial plan can seriously impact your health and well-being. Financial uncertainty can lead to constant worry, which can lead to stress and anxiety. Disorganized finances make it hard to make informed financial decisions. Money problems can put stress on personal relationships. In addition, untracked expenses and missed payments can also damage your financial health.
HOW TO DECLUTTER YOUR FINANCES
If you’ve ever felt like your finances were not in order, you’re not alone. A conducted by Intuit Credit Karma reports that 43% of Gen Z and 41 % of millennials have experienced money dysmorphia. Money dysmorphia is money dysmorphia is when your perception of your financial situation doesn’t represent reality. It’s a distorted view of your finances, which can cause financial clutter. Here are some steps you can take to declutter your finances.
Assess Your Financial Situation – Gather all your financial documents and review all accounts including bank, credit cards, loans, and investments. Track your monthly income and expenses and identify unnecessary expenditures. This will give you a sense of control and a clear view of your financial situation.
Simplify & Automate – Set up automatic bill payments and use budgeting tools and apps to help you keep track. Consolidate as many accounts as possible to make it easier to track your finances. This will help reduce stress and the number of possible missed payments.
Create A Budget – Outline a simple, manageable budget using the 50/30/20 (needs, wants, savings) rule or a budgeting system that works for you. Adjust your budget to align to the dog mom lifestyle by including items, such as vet bills and pet insurance. This will help build your confidence with money management and ensure that you’re accounting for both you and your dog’s needs in your finances.
Pay Off Debt Strategically – Use a debt repayment strategy, such as snowball or avalanche, to start paying off your debt. Make paying your down your debt a priority and research tools, apps, and resources to help you manage your debt effectively. This will give you relief as you watch your debt decrease.
Build An Emergency Funds – Establish an emergency fund. Start small, saving a fixed amount each month, and gradually increase it. This will give you peace of mind in knowing that you’re prepared for emergencies.
Review & Optimize Insurance – Evaluate certain insurance policies and explore pet insurance options. Consider health, life, and disability insurance. This will help you manage your dog’s medical expenses and provide extra security if something happens that wasn’t initially in your budget.
Plan for the Future – Set financial goals, both short-term and long-term. Introduce basic investing concepts to discuss retirement planning. It gives you the chance to learning something new, but also builds excitement and anticipation for future achievements. Also, planning also helps you be more intentional about your spending.
FINANCIAL PREPAREDNESS & WELL-BEING
As a dog mom, financial preparedness is important because it nurtures your well-being. Financial preparedness is being ready and able to cover unexpected expenses without financial strain. It reduces stress due to less financial uncertainty. It also ensures your prepared for unexpected vet bills and pet expenses. Our financial preparedness contributes to our peace of mind.
To build financial preparedness, it’s important to do the following:
Start Saving Small – Set specific savings goal. Save a small, manageable amount from each paycheck. For example, your savings goal may be $500, and you may save $20 each paycheck to get to your financial goals. One trick that works for me is looking at savings as an automated bill. This way a savings plan is always built into the budget.
Set A Savings Minimum – Map out your monthly pet expenses. Once you’ve identified your monthly pet expenses, use that to set your initial savings goal. Aim to save between 3 and 6 months of pet-related expenses.
Think Long-Term – Create a long-term savings plan. Outline where you want to be 6 months to a year with your savings goal and build from there. This could mean that you’re gradually increasing your savings each month, starting a side-hustle like selling pupcakes, or cutting non-essential expenses to boost your savings.
Decluttering and putting your money in order provide a sense of control, accomplishment, and joy. It requires planning, attention to detail, and focus on eliminating excess. More importantly, it provides opportunities to feel a sense of accomplishment once you’ve achieved your financial goal. Financial well-being is essential. Decluttering your finances is the first step in getting your financial well-being in check.
Now, we’d also love to hear from you. What first step are you taking to declutter your finances? Share your stories and connect with us @pupcakesugar.
Also, baking pupcakes and decluttering finances may seem different, however they have similar benefits. They both require planning and are connected to emotional well-being. Check out are pupcake recipe eBook, Sugar’s Dish: My Start from Scratch Story & 10 “Easy As Pupcake” Recipes to Try at Home. This eBook includes 10 beginner pupcake recipes for you to try at home with your dog.
Also, sign up for the Pupcake Sugar mailing list to get Sugar’s favorite birthday pupcake recipe to try at home with your dog. It’s great for dog moms who are new to baking dog treat.
