Your Financial Life Simple
Unless you are very
different from most other people, you do not want to spend lots of time
handling your finances, do not want to worry about your finances, and
do not want to make your financial life any more complicated than it has
Keeping your financial
life simple can save time and reduce stress. Here are ten ideas you may
want to consider:
1. Keep the number
of financial accounts you have to a minimum. A checking account, a
savings account, an investment account and perhaps an IRA account are
the basic ones you probably need.
2. Deal with as
few financial institutions as possible. This will cut down on the
mail, eliminate paper and your finances easier to understand. A solid
relationship with one institution may come in handy when you need to borrow
3. Use direct deposit
for your paychecks. This saves time, is safer and puts your money
to work faster.
4. Enroll for online
banking. Being able to check you balances, review your account activity
and paying bills electronically is more convenient and will save some
5. Use your ATM
card wisely. Avoid frequent withdrawals, but be careful carrying too
much cash. Be sure to record all your ATM activity in your checkbook.
6. Reconcile your
checking account every month. Your statement probably has a form on
the back to use if you are not using personal finance software.
7. Use as few credit
cards as possible. Too many cards can make spending too easy and may
ultimately hurt your credit rating.
8. Use an automatic
savings plan to transfer funds each month from your checking account
to your savings account. This plan builds assets and you may not even
notice that you have less to spend.
9. Enroll in your
retirement plan at work. Regular savings and the potential for your
employer matching some or all of your contributions will help your retirement
funds grow quicker.
10. Establish an
organized system for paying bills. Have one place to store them, pay
them on a regular basis before the due date and establish a storage system
for those you have paid.