Money Management: 5 Simple Ways to Declutter Your Finances
Many people struggle with managing their finances. Overspending and living outside their means are common, which often leads to financial distress and poor credit scores. The good news is, if you find yourself in a similar situation, there are things you can do to simplify your financial life. Whether you have endless credit card bills or simply want to make money management easier, the following tips will help you declutter your finances.
Formulate a Payment Plan to Get Rid of Debt
Credit card bills, tax obligations, and other outstanding debt can quickly eat into a limited bank account. The faster you get rid of this debt, the faster you can begin enjoying a simpler financial existence.
Turn to close family members and friends or find a trusted local tax accountant to help you formulate a budget and payment plan. Make sure you work with someone who has the know-how to help you pay down debt without leaving you destitute. Commit to following a strict payment plan, and you’ll be on your way to decluttering your finances.
Go Paperless and Automate
If you have a mountain of paper bills and such sitting on the table or countertop, you’re like almost every other household in the country. This paper clutter is unsightly and unnecessary since most companies do business online these days.
Do yourself a favor and opt to go paperless with as many of your creditors as you can. Set up automatic withdrawals for recurring monthly bills, so you don’t have to worry about them. If you’re self-employed, look into accounts payable automation for the business side of your finances. Most of your regular bills can be automated – all you need to do is ensure there’s money in your account before they’re due to be paid.
Make Paying Your Insurance Less Complicated
If you have multiple insurance policies with various companies, you may consider bundling them together with the same company. Doing so will not only be less complicated, but you might also save some money.
Most insurance companies offer auto, home, and life insurance bundles for less than the cost of paying for these policies separately, so do some shopping around and find a deal that will work for you.
Consolidate Your Retirement Plans
As we go through life, many of us change jobs, often leaving behind a retirement plan with a previous employer. If you have multiple retirement plans with past employers, consider consolidating them all into one account. This will make things easier when the time comes to retire, and if you increase your contribution by just one percent, you’ll end up with more money to live on.
Check with your current employer for more information on how to roll all your retirement plans into one account to uncomplicate your finances now and in the future.
Declutter Your Home
If you’re like most people, you have a houseful of things you no longer use or want. Since you’re in the mode of decluttering your finances, you might as well declutter your home as this will make your life simpler in general.
Go through your home and gather up all the things you no longer use. Sell what you can and donate the rest. The money you make can be used to enhance your emergency fund or retirement account, while the extra, uncluttered space will feel free.
Many people struggle with managing their finances, but it doesn’t have to be complicated. Following the tips above and decluttering your finances can make life simpler and less stressful.