1. Taxes – I hate to be the one to break the bad news here, but tax season is fast approaching, my friends. Just last week in a meeting, Chris Falco with Babaian CPA Associates PLLC said something that really caught my attention. He said the easiest way to save money on your tax preparation expense is to make sure your tax files are organized. That goes for W-2s, 1099s, receipts, invoices, donations to charities – everything! And in case you’re audited, having organized tax files for the previous seven years will save you money and stress in the long run. A final added tax benefit to decluttering and getting organized is that you can get a tax deduction for items you donate to charity. Just remember to save the receipt.
2. Duplicate Purchases – How many times have you run to the store for batteries only to realize a week later that there was a whole stash in the kitchen? Or better yet, you can’t find that black sweater and decide the dry cleaner probably lost it. Wrong! Check the far reaches of your closet. If you’re organized and all your possessions have a home, you won’t find yourself purchasing duplicate items.
3. Emergency Situation – Not to be grim here, but what happens if you are robbed, or your building has a fire or water damage? You suddenly need to file an extensive insurance claim, but you realize you have no real sense of which possessions were lost or damaged or the cost associated with either. Getting organized is the answer. To save money and grey hair in the long run, create an inventory of your most valuable possessions like fine art, electronics, furniture, and jewelry, including photos of the items, manufacturer information, and receipts to document date and location purchased and price paid.
4. Home Sale – Just last week, the New York Times reported that clutter and disorganization could take five to 15 percent off the sale of your home. No one finds a cluttered space appealing, so if you’re in the market to sell, get organized first.
5. Real Estate – New York City’s residential real estate is some of the most valuable per square foot in the world. And a common reason people move is because they need more space. If you could declutter and organize your possessions to make more space in your current apartment, thus avoiding the need to move to a larger apartment, imagine the money you would save.
6. Late Fees – Organizing your bill paying is the fastest way to get control of your personal financial situation and to avoid spending additional money on late fees. Enough said!