Clear the Clutter!

Want an easy way to simply your life and clear your head? Clear the clutter.

I learned this trick recently when I put my house up for sale. My agent told me to store at least a third of my possessions to make the house look less cluttered to buyers.

So, I emptied closets and bookshelves and put furniture into storage. And guess what? I didn't miss a thing (except the tea kettle).

When you acquire fewer possessions, you not only save money on purchases, but you also reduce maintenance and storage costs (not to mention the inevitable moving costs).

You don't need a remodeled kitchen with more cabinet space if you have fewer gadgets. Who needs a popcorn popper or a crepe pan? A skillet with a lid will handle most cooking tasks. What about more than one set of dishes or table linens? White dishes are timeless.

Often, the biggest maintenance monsters are in the garage. One-car garages have stretched to three-car garages. When I asked a real estate agent why, she said, "You need a third car when your teenager starts driving." Really? When I was a teenager, I learned critical negotiating skills every weekend as I wrangled for the family car.

The problem with three cars -- or even two -- is that you have to pay extra insurance and maintenance.

Try this exercise: Pick a room and remove one-third of its contents. If you haven't used something in six months, sell it. Then move on to another room. Not only will you make good money selling things you no longer use, but you'll also find your home more appealing.

Finally, avoid clutter in the first place by acquiring less. Resist purchases by asking yourself, "Can I borrow it? Can I do without it? Can I make it?" If you truly need something, buy one that costs less to maintain -- such as clothes you can machine-wash instead of dry-clean.

This is the fourth in our series on Simplifying Your Financial Life. Previous articles focused on simplifying your investment accounts, assigning values to your time and money and saving time with online services.