Dealing with debts, juggling multiple finance accounts, and vigilantly monitoring your investments can be a bit of a bore unless you’re someone who has a passion for financial matters. As much as I, personally, enjoy all things finance, I prefer a stress-free and efficient system when it comes to handling my cash flow. This helps me manage my time and finances more effectively.
If you’re tired of spending inordinate amounts of time on managing your money, here are my top seven tips to uncomplicate your financial life.
1. EMBRACE AUTOMATIC PAYMENTS
It’s been ages since my last mailed cheque or in-person payment. It’s too time-consuming! Paying online is my favorite route, and setting up auto-payments means I don’t even have to remember due dates. Just ensure your account is sufficiently funded and you’re good to go.
Not everything should be automated, though. Only schedule recurring payments for necessities like utilities and insurance to avoid mindless payments for things like newspaper subscriptions you no longer need.
2. SET UP AUTOMATIC SAVINGS WHILE YOU’RE AT IT
When I receive my paycheck, a portion goes into my retirement account, another percentage into my savings, with the balance in my checking account for monthly expenses. The ‘out of sight, out of mind’ strategy ensures savings without the temptation to spend.
3. DOWNSIZE YOUR ACCOUNTS
Managing several accounts at different banks is not only stressful but risky too. In the unfortunate event of my husband and I passing away, I wouldn’t want my family scrambling to track down our assets. Consolidate your accounts wherever possible, and if you prefer different savings accounts for various purposes, consider keeping them with one or two banks at most.
4. WEEKLY ACCOUNT BALANCING
Despite sounding old-fashioned, I make a point of balancing my checking account every week. Whether you go the traditional route or compare receipts with your online bank statement, doing this weekly avoids unnecessary pile-ups.
5. SIMPLE INVESTING
Index funds are an effortless way to invest. They’re passive, cost-effective, and low-risk, and you only need to check them every few months.
6. GO DIGITAL
Embrace paperless statements, not only for the environmental benefits but also as a means to secure your information. Store your bills in your email for when you’re ready to deal with them.
7. UTILIZE ONLINE TOOLS
Free, online finance tools like Mint.com offer comprehensive snapshots of your financial health and can even alert you when bills are due.
Streamlining your finances can yield multiple benefits, from better financial oversight to less financial stress. Whether you’re simplifying your investment strategy or minimizing the number of banking accounts you have, each step taken can make financial management less cumbersome and more rewarding in the long run.
How do you manage your finances? Do you maintain multiple savings accounts?
