The Surprising Connection Between a Clean House and a Sound Investment Portfolio
How Tidying Up Your Home Can Lead to Better Financial Decisions and a Stronger Investment Portfolio
We often think of personal finance and housekeeping as two entirely separate aspects of life. One is about numbers, strategies, and the future; the other is about chores, routines, and the present.
But what if these two areas are more connected than we realize? The truth is that the discipline and mindset required to keep a tidy home can directly influence the success of your investment portfolio.
Jordan Peterson’s Insight: Start with Your Room
Jordan Peterson, the renowned psychologist and author, famously suggests that before you try to change the world, you should "start by cleaning your room." This advice is deceptively simple. By organizing your immediate surroundings, you bring order to your life, which fosters a mindset of responsibility, discipline, and clarity. These same qualities are essential for making sound investment decisions.
Peterson’s point is not just about cleanliness. It’s about taking control of what you can, establishing order where you have influence, and setting the stage for larger achievements. In essence, a clean and organized environment is a reflection of a well-ordered mind—something crucial for managing an investment portfolio.
The Parallels Between Housekeeping and Investing
Discipline and Routine: Keeping your house clean requires consistent effort and discipline. It’s about establishing routines—making the bed, washing the dishes, decluttering—that keep chaos at bay. Similarly, successful investing requires discipline: regularly contributing to your investments, sticking to a budget, and resisting the urge to make impulsive decisions based on market fluctuations.
Attention to Detail: A tidy home doesn’t happen by accident. It requires attention to the little things—putting away that stray sock, wiping down the counters, organizing your shelves. In investing, attention to detail matters too. It’s about understanding the companies you invest in, monitoring your portfolio, and keeping track of your financial goals.
Long-Term Vision: Just like maintaining a clean house is not about making everything perfect in one day but rather about maintaining a standard of cleanliness over time, investing is not about quick wins. It’s about building wealth steadily and patiently over years or even decades. Both require a long-term vision and the understanding that small, consistent actions compound over time.
Mental Clarity: A clean house contributes to mental clarity and reduces stress. It’s much easier to think clearly, make decisions, and focus on what matters when your environment is in order. Similarly, a well-managed investment portfolio can reduce financial stress and provide peace of mind, allowing you to focus on other important aspects of life.
A Personal Reflection: Clean House, Clean Portfolio
Let’s get personal for a moment. When I keep my house clean, it’s not just about cleanliness—it’s about control, clarity, and confidence. Walking into a tidy space feels like stepping into a space of possibility and calm. It’s a place where I’m in control, where my decisions shape my environment. This feeling translates directly into how I manage my investments.
When my surroundings are orderly, I find that I’m better equipped to manage my finances. I’m more likely to sit down and review my portfolio, update my budget, and think strategically about my investments. The act of cleaning and organizing my home becomes a ritual that reinforces my commitment to maintaining a healthy financial life. It’s as if the discipline I practice in one area naturally extends into the other.
Practical Tips: Bringing Order to Both Worlds
Set Daily and Weekly Routines: Just as you might have a daily routine for tidying up, establish a routine for checking in on your finances. This could be as simple as reviewing your spending at the end of each day or setting aside time each week to track your investments.
Declutter Regularly: Just like you declutter your home, take time to declutter your finances. Review your subscriptions, assess your spending habits, and eliminate unnecessary expenses. This will free up more resources for investing and reduce financial waste.
Focus on What You Can Control: You can’t control the stock market any more than you can control the weather. But you can control how you respond to it. Keeping your home tidy amidst the chaos of life is a way of asserting control, just as sticking to your investment plan maintains financial discipline regardless of market conditions.
Celebrate Small Wins: Every time you clean a room or organize a space, you feel a sense of accomplishment. Apply this to your finances by celebrating small milestones, like reaching a savings goal or sticking to your budget for a month. These small victories build momentum.
Conclusion: A Clean House, A Clear Path to Financial Success
So, to sum this up, in both housekeeping and investing, it’s not about perfection—this doesn’t really exist. It’s about progress, consistency, and intentionality. A clean house reflects a clear mind, and a clear mind makes better investment decisions. The habits you cultivate in maintaining your living space can be powerful tools for managing your finances.
In both areas, the key to success is the same: start small, stay consistent, and think long-term.
Have a happy week ahead!