There’s no doubt about it, we live in a stressful, fast-paced, crazy world. But deep down, most of us long for simplicity and peace of mind. One of the biggest contributors to our stress is our financial life. Simplifying this can go a long way towards lowering our overall stress and ultimately giving us peace of mind.
Here are some steps to help accomplish this:
- Consolidate – If you have multiple credit card, bank, and brokerage accounts, eliminate as many as possible and streamline your finances through a minimal number of accounts. This will help you track your finances better and keep tabs on any issues that may arise.
- Go Paperless – Getting digital copies of your statements, usually as a PDF file, will make them easier to store, easier to find, and much safer to keep than having a filing cabinet full of paper statements.
- Pay Cash – Using good old-fashioned cash instead of plastic will help you avoid debt, credit card statements, and impulse purchases. With this method, you can’t spend what you don’t have.
- Automate – With today’s plethora of apps and websites dedicated to financial automation, it is easier than ever to automate your financial life. Make sure your paycheck is direct deposited, your savings are auto-transferred, and your transactions are auto-tracked. The more things that are automated, the fewer things you have to worry about on a daily basis.
- Stop Buying Stuff – Clutter is costly and stressful. One way to help limit this is to make a rule that requires you sell or donate two items for every one that you buy. Things don’t make us happy, but reducing clutter helps!
Bottom line, life is way more stressful the more complicated you allow things to be. By implementing these five tips to help simplify your financial life, you will go a long way towards discovering peace and stress-free living.