How to Simplify Your Financial Life

Everyone longs for financial security and freedom. Yet so many of us fall into the habit of putting money management and our financial goals on the back burner. There are endless excuses, ranging from being too busy or simply not knowing where to start. And while valid excuses, falling behind on your finances is never good. Thankfully there are many ways to simplify your financial life. Making your money work for you and achieving financial stability is easier than you may think.

Here are five of the best ways to make managing your finances easier than ever.

1. Go Paperless

Is your kitchen table or office a complete paper jungle? You aren’t alone if you’ve got credit card statements, bills, and other financial records all over the place. To remedy this problem entirely, switch all your financial documents to e-delivery.

Digital files are much easier to maintain and organize. If you happen to need a paper copy, locate the file on your computer, print it out and you’ve got a hard copy in a matter of seconds!

To ensure your digital collection is complete, scan in old paper documents and file them accordingly.

2. Track Important Dates

Everyone has bills, and the more you have, the harder it is to keep up. Missing a payment or paying a bill twice create avoidable money problems.

To keep your finances in check, keep track of important financial dates. An online calendar is the best way to stay on top of:

  • Bill due dates
  • Tax filings
  • 401(k) contributions

You can also use this calendar to set and track financial goals. Maybe you’re planning a winter family getaway and need to save $3,000 before the end of December. Set a start and end date and get to saving!

3. Automate Your Savings

It’s all too easy to fall into the habit of not saving. But what if you could simplify your financial life and save without having to lift a finger?

Meeting your savings goals is so much easier when you’re setting money aside without having to think about it or do a thing. Most banks and credit unions offer the ability to transfer funds from your checking into your savings account.

You can also work with your employer to put a set dollar amount or percentage of your check into a savings account.

4. Automate Your Bills

While you’re at it, automate your bills as well. simplifying your financial life is all about doing less and making technology (and your finances) work for you. Set up autopay whenever possible.

By putting your utilities, insurance, credit cards, mortgage, and other bills on autopilot, you’ll never have to worry about making a late payment or late fees.

5. Use One Credit Card

Did you know that the average American has four credit cards? While credit cards are a must for building credit score and showing your credit worthiness, having too many complicates your finances.

The best way to simplify your financial life is to use one credit card. Pick the one that offers the most bang for your buck, whether it’s cash back or travel rewards.

By using only one card, that means you only have one bill to worry about each month.

Simplifying your finances is one of the best decisions you’ll ever make. Instead of letting your finances stress you out, make them work for you! By properly managing your money, you’ll be one step closer to financial freedom.

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