3 Areas to Simplify Your Economic Life

I recently sent out a survey to my database of about 3500 people. I am considering doing a seminar cruise in the spring of 2011 and wanted to know the interest of topics to deliver on the cruise. By far, (almost two to one) the popularity of the subject of simplification won out. It beat out topics like multi-units, foreclosures, life after bankruptcy, to name a few.

This week I thought I would give you some insight as to ways that you can start to make economic changes to make your life simpler. This is especially important because many people do not know where to start. I am closing in on the halfway point to my life simplification plan that I started this year. The one thing I do know, is that starting out is not easy.

I started by taking my life and dividing it into three main categories. Those categories are Business, Life and History. All of these areas have a financial attachment to your life. I wanted to go through each one of those at least to give you hints at not only the challenges but also some of the things that have helped me out. Here they are:

Business. I have made a decision to go with the mantra, “What got you here, will not get you there.” This is so appropriate to today’s business world. You cannot take the ideas that have fueled the consumerism in this country over the past 15 years and think that you are going to have success with those moving forward.

The question should be asked, “Do I have something that people need?” We are quickly moving from a society of wants to a society of needs. You can’t simply be concerned with what your customers want, they have to need it, for you to be affective. Simplifying your marketing, sales, and operations to service needs rather than wants will give you the most bang for your buck moving forward.

Also, make sure you are internally analyzing some of your business aspects. Do you need your business subscriptions, your office, or even your wi-fi card? Those things have enormous costs involved with your business. I have or am in the process of getting rid of those things. I am making my business (and office) as virtual as I can. Its easy to do with the technology(www.gotomeeting.com, www.grasshopper.com, etc.) on the market. The cost savings are tremendous.

This economy is putting a damper on top side revenue. Because you cannot control that necessarily, you have to start changing things to evolve your bottom line, which is minimize and simplify your expenses. Another idea would be to look at things like your cell phone coverage, do you need the plan your on? Or, could you go to one that costs less? Do you need all the texting minutes or could you go to a plan for less? You would be surprised at how much you can save monthly by going through that exercise.

Life. Life simplicity, of course could be written about for a long time. Within this category, I have found three major areas that have helped me save money.

Your home probably presents some of the greatest expenses of your life. Look at things like the space you live in and decide whether you need the space your in. (Refer to my 33 blog to see what I found out about my living space) Typically we live in spaces that are 66% larger than we need. There are a tremendous amount of savings by living in a space that is more appropriate to our needs (Notice that word need again!). Things like taxes, insurance and maintenance add to monthly expenses.

What about your car choice? Remember, its just a vehicle to get you from A to B. I had a  hard time with removing the luxurious vehicles in my life until I started to calculate the savings. Think about it…gas, insurance, payments, adds a lot to your monthly expenses. The other thing that I noticed is that nobody is giving you more business, less business, more time or less time based on the car you drive. If they are, you need to remove them from your life and business. Those are not the reasons you want to surround yourself with people like that.

Finally, the items that you thought you need around your house, you probably don’t. If you haven’t worn a piece of clothing in a year, your probably not going to. Donate it. What about all of those dishes and cookware in the kitchen. Again, if you haven’t used them in a year, have a garage sale. There are things in your garage or storage space that you think you want, but again, ask, “Do I need these things?” Sell on eBay or craigslist.

History. I have noticed that people, including myself tend to complicate their life by holding on to bad history. This includes people(that’s right, I said people), events, things (including real estate) and thoughts. Remove them, which is not an easy task. Your future is not defined by your history. (Please read that last sentence again, its that important!) Yet, I find that is the number one things that holds people back. This costs you money!

Think about real estate for instance. By holding on to pieces of real estate that are not making an immediate return for you is costing money! For many properties, after a certain period of time, you cross the point of no return, where you may never get your return. Don’t be in denial.   Move the properties to market, sell them. If they don’t sell its because the price is too high. Be realistic with what you can get for them in today’s market. Don’t hope that they will come back and then you can reap the benefits. Holding onto bad assets, in most cases, costs you money.

Once you go through the process of removal, it is clarity that becomes apparent. Letting go has been one of the most freeing feelings I have had in my adult life. It often opens up to some of the most beautiful, profitable, energetic things in your life. Sell, trade-down, donate or give away items that you have collected over the years. It will give you a new energy and for some, a new beginning.

Life is easier to conquer, when there is less “stuff” in it.

We all need to take the time and simplify our lives by removing the clutter that we all have collected. It makes room for the very items that we were looking for when we acquired the clutter. Peace, creativity, time and true happiness. (non of those have anything to do with money)

“Remember…wealth has nothing to do with money, success has everything to do with failure, and life is as simple as you want to make it!" -John Dessauer