5 Ways to Simplify Your Finances

If you’re like many people, organizing your finances is one of those tasks you keep putting off. But the rewards for doing so – saving time and money – are well worth the effort. Even better, simplifying your finances will simplify your life.

The best way to start? Schedule
time to review and simplify your bill-paying process. Whether you want to
reduce expenses as you head into the new year or pad your savings account, try
putting the tips below into practice.

Go Paperless

Going digital will
eliminate paper clutter and may even save you some money. Most financial
institutions will store your statements and transaction receipts for free for up to five years. And some billers offer discounts for setting up automatic digital
payments.

Choosing the digital route will also save you time. Sifting through file cabinets jam-packed with financial statements, bills, and receipts can be very frustrating and time-consuming. Managing your accounts online allows you to have a one-stop shop for all of your files. And it gives you instant access for any information you need from anywhere.

Evaluate Payments

Evaluating your payments
goes beyond simply keeping track of how much you’re spending. It’s a good idea
to review your monthly expenses annually.

Research all of the financial options that could help you streamline your expenses in the long run. For example, if you’ve been thinking about refinancing your mortgage loan, now might be the perfect time to do so while mortgage interest rates are low.

Or, take a closer look at
any other monthly payments you make. From cutting the cord on your cable
provider to lowering your cell phone data plan, there are many ways you can
lessen your payments and simplify your finances.

Take Out Cash

While carrying cash might
feel like a thing of the past, it may benefit you more than you think. If
you’re someone who tends to go over your budget, paying for everyday expenses
with cash could solve the problem.

Limiting yourself to the cash you have in your wallet will help you keep better track of the more regular, smaller, payments you make each day.  Try using cash for your daily or weekly purchases like coffee and groceries. You may find that your smaller expenses add up to be more than expected, giving you the opportunity to revamp your personal budget.

Consolidate Accounts

From multiple insurance
providers to streaming subscriptions, it’s safe to say it’s not possible to
have one account for everything. However, there may be ways you can consolidate
your accounts, resulting in savings of time and money.

The perfect way to
simplify your finances is by lessening the number of companies you’re sending
payments to each month. If your homeowner’s insurance and car insurance are
provided by two different agents, look into bundling all of your insurance
needs together. Most insurance companies offer multi-policy discounts.

Take the time to go
through your accounts and record/make note of which companies offer the same
services as each other. For example, if you know there’s a streaming service
you haven’t been using as much, see if you can go without it for a month; you
may realize you shouldn’t be paying for that service in the first place.

Have a System

Whether you do decide to
go paperless with your finances or not, having the right system in place is
crucial. The next time you have some free time, dedicate a few hours to go
through any existing paperwork you have at home.

Invest in a self-purging filing system or utilize the organization tools you may already have to create a place for important receipts and financial documents. Hopefully you’ll discover papers you can get rid of in the process, allowing you to declutter and simplify at the same time.

Managing your finances can be tricky, so go easy on yourself by simplifying the process. From taking the time to go paperless, starting to carry more cash or doing some simple payment evaluation, knowing your options is half the battle. Put the tips above into practice and you’re sure to feel less stressed as you start the new year.

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Kevin Graham is a financial guidance writer who enjoys helping readers find simple and practical solutions for improving their spending habits.

FULL DISCLOSURE: This post contains affiliate links that may result in a small referral commission to me at no additional cost to you. Thanks for supporting my work!

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