We live in a world where modern lifestyles pull us in all directions. It’s no wonder we are overwhelmed and stressed out by our busy lives and cluttered homes.
UCLA researchers even wrote a book on the subject, “Life at Home in the Twenty-First Century: 32 Families Open Their Doors,” and found many families had garages too full to accommodate cars, backyards that are never used, and mothers with elevated stress hormones.
If you’re ready to step off the hamster wheel, here are some basic strategies to simplify your life.
1. Consolidate accounts
It’s hard to say no to the $100 bonus for opening a checking account when the new bank comes to town. Or maybe you can’t refuse the great sign-up offer available from the latest rewards credit card.
Before you know it, you could have a half-dozen accounts at various institutions. Your IRA is in one place, the checking account is in another. You also have a mortgage, emergency savings and insurance products to juggle.
Rather than having accounts scattered to the wind, try to consolidate them in a couple of places. Pick one bank for money and credit, and one company for all insurance needs. In the end, you not only have fewer accounts to manage, but also may get better rates or terms for bringing more of your business to a particular institution.
Routines take the guesswork out of regular activities and make life simpler.
2. Purge the paperwork
Consolidating accounts is only the first step. Next, purge the paperwork.
Sign up for paperless statements, which most financial institutions offer. With the exception of a few vital documents such as birth certificates and titles, scan and shred almost everything else in your filing cabinet.
For more pointers, check out this article with five tips for paperless finances.
3. Pay cash whenever possible
Don’t underestimate the power of cash to simplify your finances.
Paying with cash can prevent you from overspending, and it eliminates much of the stress of daily money management. Never again will you have to worry about whether your card will be declined because the fuzzy math in your head isn’t quite right.
4. Automate your life
Free yourself from the anxiety of paying the mortgage on time by automating your finances.
If you’re not being paid via direct deposit, sign up. Some employers will let you split your paycheck among two or more accounts. If that’s possible, send at least 10 percent of earnings to your savings account.
Use a bill-pay service. Depending on your bank and billers, you may be able to request bills be electronically delivered, and the amount due paid automatically. Otherwise, you can set up recurring monthly payments.
For expense tracking, skip the spreadsheets and use an app or tracking software, such as our partner PowerWallet.
5. Stop buying more stuff
Minimalism is one of the core principles of simple living.
The less stuff you have, the less time you’ll spend maintaining, rearranging and obsessing over what you’ve got. Plus, when you stop spending, you have more money for saving, or for splurging on important things.
Source: MoneyTalksNews | Maryalene LaPonsie
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