6 Ways to Simplify Your Financial Life
If dealing with your finances feels like a chore, it may be time to simplify. Here are six suggestions you can use today. Hopefully they’ll help you spend less time thinking about money and more time doing the things you love.
Auto pay everything
Aside from attacking our debt, registering all of our accounts for auto pay is the best thing my husband and I have done for our financial life. Our utilities, streaming services, donations, insurance and one remaining student loan payment are deducted automatically from our bank account each month. We don’t even think about it. The only thing we pay the old fashioned way is rent, and it’s a whole lot easier to remember one payment a month than half a dozen. Many people also find success with automating a savings plan, which creates a nest egg with little or no thought.
Have joint accounts
If you’re married, having a joint checking account is a good idea for several reasons. First, the simplicity is helpful. All income can be automatically deposited into the same place, where it can be distributed wherever needed. There’s no need to worry about “his” and “hers” budgets or shuffling money from one account to another. Joint accounts are also good for accountability. Both partners know exactly how much money is coming in and going out, which can prevent a lot of arguments.
Create a monthly budget
Some people like weekly budgets; others prefer to do a daily budget check. You need to choose whatever works best for you, but I’ve found that thinking about finances every day can become a real burden. Budgeting on a monthly basis can save time and stress.
Keep important info in one place
Whether you keep a computer spreadsheet or a paper copy of your records, make sure everything is in one location. I use a small binder of 3×5 index cards—one for each bank account, credit card, utility bill, giving statement, etc. Account numbers, passwords and any other pertinent info are in one spot, so my husband and I can both find whatever we need without digging around. This is especially helpful around tax time.
Skip the extra credit cards
Collecting airline miles on one card, hotel points on another, and cash back on yet another can be more of a headache than a money-saver. If you divide your spending power over multiple cards, you’re not going to get very far with any rewards program. You’re also giving yourself the hassle of tracking multiple accounts and increasing your chances of missing a payment. Have you ever met anyone who got rich off of reward points or 2 percent cash back? Me neither.
Use mobile banking
I recently downloaded my bank’s mobile app, and I love it. I can check our balance, transfer money and deposit checks into our account with a photo and the touch of a button. It’s a big time and gas saver since I have no reason to go to the bank anymore. Now, if only my phone could print out cash. Then we’d really be in good shape!
