Ask Away Blog: How To Simplify Your Finances

How To Simplify Your Finances

Monday, March 15, 2021

 


Keeping your finances organized can be a big task.  If you don't have systems in place there can be a lot of chaos between making sure bills are paid on time, balancing your monthly budget, and working towards your debt free or savings goals.  So here are some ways to simplify those aspects of your finances so that there's less stress and everything runs smoothly.




Create and Stick To A Budget
So obviously, a budget is the key to everything.  I have an entire post on how to get on a budget successfully.  Creating a budget will allow you to know where your money will go each month.  It helps cut back on chaos because your spending and saving categories will account for all of the things you need to spend money on throughout the year.  
 
Cut Expenses
It can be really stressful to have a bunch of automatic withdrawals for subscriptions and expenses you haven't planned for so that's why I always cut expenses.   Look at everywhere your money goes each month and see where you can save money by cancelling subscriptions, reducing your cable bill, changing your phone data plan, and stop allowing yourself to go on random shopping sprees when you really don't absolutely need everything you buy.  
 
Set Up Automatic Bill Pay
You can make little calendars for each month that shows what bills come out on what days or you can just note it on a regular calendar your family uses.  Then you want to set up automatic bill pay for your utilities and other things so that they come out without you having to remember to log on and pay.  There are actually little discounts you can get each month on your bills in many cases just by switching to automatic withdrawals.  
 
Track Everything
This may seem like a lot of work but that's the point because you may realize it's annoying to have to track down your expenses for little things like Starbucks throughout the week.  That may even motivate you to just make coffee at home which saves you the work AND money. And when it comes to paying off debt, make sure you use my free spreadsheet to track it and monitor your progress.  

Make It Pretty
Use a cash spending system and make it pretty and decorated so you enjoy using it more. This is much less chaotic then random bills floating around in your pocket or purse and you not knowing if they should go to a specific category.  Taking pride in your finances in all aspects can really make you more successful. 

Save Save Save
There is always less chaos when you choose to hold on to and save your money instead of spending it. Always ask yourself questions before making any purchase.  Do you really need to spend this money or is there an alternative solution?  If an emergency does arise, you will have less guilt about money you've spent frivolously before. Also, an emergency fund is 100% important in emergencies. Save up $500-$1,000 and ONLY ever touch it in the case of an emergency. This will help you not spend money in your budget allocated to other things and also will prevent you from going into more debt.  And in the end, there's less overall chaos. 

I really hope these tips help you.   Have you simplified your finances recently?
 


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