Everyone likes to have a sense of security, but if you do not know how to simplify your financial life, then you might find yourself at a standstill. Having debt on top of more debt simply because you didn’t know how to spend your money isn’t an excuse.
If you feel like your finances are starting to control you, there are some solutions that can help you change that pattern. Here are a couple of ways to take back the reins of your financial life.
- Consolidate Your Bank and Retirement Accounts
Generally, people can get by just fine if they have one savings account and a checking one. If you have more of them, simply consolidate them into one of each. Learn how to simplify your financial life by also simplifying your banking experience. This way, you won’t experience any losses on the service level either.
- Pay in Cash
This may sound old school, but it’s also more efficient. Not only will you be able to track your own money more efficiently, but you will also avoid being charged for receipts and having your expenses tracked. Only use the credit card for larger purchases, just in case you may need a refund.
- Cut Out the Unnecessary Services
Everyone has at least one or two subscriptions they no longer use just because “I might need it one day.” However, that “might” clause will cost you months of paying for something you do not necessarily need, which is definitely not how you simplify your financial life. The fewer payments you need to make, the simpler life will be.
- Simplify Your Goals
One goal at a time is a good idea. Five goals and one salary – not so much. More than one goal will force you to spread your efforts in way too many directions, making you not only very confused but very broke as well. Learn to be more organized and take it one step at a time. It’ll make things much easier.
- Rent Homes Instead of Owning
Sure, we all love the feeling of owning our home, but ownership comes with a very long list of financial expenses that you may not have. You won’t have to deal with these obligations if you were to rent a home. For instance, certain taxes such as maintenance, repairs or HOA assessments will fall under the responsibility of the landlord.
Renting and owning are pretty similar, in a way. The difference is that to one you need to pay a monthly rent, and the other a monthly mortgage. You learn how to simplify your financial life by seeing which one pays less.
- Clear Your Debts
For each debt that you pay off, you eliminate one more complication out of your financial life. While you may not be able to do this overnight, it IS possible if you establish a clear plan. The fewer bills you have to pay, the simpler your life will become.
Now that you know how to simplify your financial life, you may want to start investing that extra money. These changes will go a long way in securing your future.