Simplify Your Finances to Help Simplify Your Life
As fall draws closer, so does the busiest time of the year—the holiday season. What better time to take stock of your finances and stay in control of things? Getting familiar with how, when, and where you spend your money will pay off big time, literally and figuratively, down the road.
We’ve compiled a list of ways to simplify your finances to help you stay in control of your money.
Create a budget
A budget is a plan for how you will spend and save your money. What better way to take control and simplify your finances than by making a plan and knowing exactly how you use your money? Budgeting is an essential piece of any healthy financial picture, so this is a great place to start.
Consolidate your accounts
In order to simplify your finances, you have to know where your money is held. Many people have just one checking and one savings account. It’s okay if you need or want more, but don’t overcomplicate things by having extra accounts. If you have unnecessary accounts, your finances will be more complicated than they need to be. Make sure that you know how much is in each account and what each account is used for.
Sort through paperwork
Carve out a few hours one day to go through those old files that you haven’t touched in years. Chances are, there will be some outdated paperwork or documents that aren’t even relevant anymore. Sort through this old paperwork and shred anything that is no longer pertinent and contains your personal information. Also, consider opting for electronic communications for your current bills, this will help you remain in control going forward.
Set up auto payments
Whether it’s for a streaming service, your utilities, your mortgage, or anything else, setting up automatic payments will give you piece of mind knowing that things will get paid whether you remember them or not. One tip is to set up text or email reminders when those automatic payments go through so that you’re still aware of what money is coming out of your account.
Take stock of memberships and subscriptions
Make a list of all of your memberships and subscriptions, whether it’s a grocery delivery service, TV show subscriptions, gym memberships, or anything else. Write down what it is that you’re paying for and how much it is costing you. It’s easy to spend $7.99 here and $9.99 there, but when you look at your full financial picture, these things can add up quickly. Cut down on those services that you don’t take advantage of, this will help you stay more organized and also help your budget.
Interested in learning more financial education tips? Visit the financial education page on our website: https://www.msufcu.org/finedu/