How to Declutter Your Finances

1/29/2026

The beginning of the year can be a great time to start decluttering your home, your life, and even your finances. You might be familiar with some of the strategies of decluttering your items, but what about your money? This article will help you to start to think about finances in a more simplified way. If you're feeling overwhelmed by numbers, bank accounts, or where to even start, this is the article for you.

Please note: This article does not contain healthcare, therapeutic or financial advice. If you are concerned about your health or well-being, speak with a health professional or visit your nearest medical facility in an emergency. The links in this article may be affiliate links that I will be compensated for at no additional cost to you.

Why Should You Declutter Your Finances?

You might be asking yourself, why even declutter your finances? Often times, our finances are one of the last areas of our life we pay attention to. You might have things set up automatically and so finances fall to the back of your mind. The importance lowers because your bills are getting paid and nothing is 'broken', but there may be ways to simplify your finances and create more efficient processes. Also, there is wisdom in knowing what is happening with your finances so it can help to have a birds eye view of your situation.

Where Should You Start?

One of the best strategies I have found for just getting started is to list our all of your accounts, debts, and payments. You can use pen and paper, an excel spreadsheet, whatever works best for you. The point is to lay it all out for you to see what you have and what is going on. Once you have this information, it's important to use a system that can help you to start slow and gives you bite-sized steps to take along the way.

There are many 'experts of personal finance' but the one that has unequivocally been heard the most online is without a doubt Dave Ramsey. The core of the Ramsey method are the Baby Steps. These steps helps every day people learn the basics of personal finance, but also to have hope that, regardless of the situation, there is a path forward in sorting out your money and your life.

The 7 Baby Steps:

1. Save $1,000 for a starter emergency fund.
2. Pay off all debt (except the house) using the debt snowball.
3. Save 3–6 months of expenses in a fully funded emergency fund.
4. Invest 15% of household income for retirement.
5. Save for your children's college fund.
6. Pay off your home early.
7. Build wealth and give.

Watch Dave explain the Baby Steps - there are tons of other videos and resources that can help you through the steps, as well.

There are more sophisticated ways of setting up your finances or maximizing your wealth, but the baby steps are a great place to get started. Once you have the basics down, then you can start expanding and learning more and trying out more ways of saving, investing, and becoming savvy with your money.

Related: Surprising Facts About Financial Well-Being & Mental Health

What Else Can You Do?

- Learn how to use sinking funds to save for larger, planned expenses throughout the year (for example, vacations, car repair, renovations, wedding)
- Surround yourself with likeminded people who can help you to stay on track, talk about your experiences of decluttering your finances, and share resources
- Check in with your mental health - sorting out your finances can be stressful and overwhelming at times, and this can impact on your emotional health and well-being
- Reward yourself for getting started and reaching milestones - this can be in the form of a small gift to yourself, or writing yourself a letter of congratulations that you can read later throughout your financial declutter journey

And most of all, keep going! You have made one of the hardest steps on this journey which is recognizing that you can do better with your finances. Keep the momentum going!

Here are some resources that can help:

Canadian resources that I personally use and recommend:

Tangerine Bank: An online bank that offers no fees for banking, a higher interest rate than most for cash-back on savings. Use my Orange Key 46581005S1 to receive a bonus.
Questrade: Open a self-directed investing account and pay lower fees than a mutual fund account. Use my QPass Key 775906489409124 to receive a bonus.
CIBC Bank Account: Open a new account as a new client and we will both be rewarded. Use this account as your emergency starter fund so you have easy access to the money when an unexpected event comes up.