Life is difficult enough without having your finances complicate things. Too many people spend sleepless nights worried about their finances. This could be due to the way they spend money buying things that are not important. When a lady see the latest shoe or bag in town, she will go for it, for a man it could be a car, phone or the most expensive wristwatch that a friend of his just bought. Your financial life should be simple enough that you can keep track of your incoming and outgoing bills without breaking a sweat. All you have to do is make a few changes and you can streamline your current process. Managing your personal finances doesn’t have to be so complicated.
There are ways to simplify the management of your personal finances and get a good grip on your expenses.
Have Just 1 or 2 Credit Cards.
Some people tend to have multiple bank accounts thereby making them to have a lot of debit cards. You can just have two bank account s, which isn’t a bad idea as this will help you to reduce the rate at which you spend money. It is much easier to control your spending when you have just 1 or 2 credit cards compared to when you have 5 or 10.
Live Debt Free
This is easily one of the best ways to simplify your financial life. People are in the habit of getting things on credit which will accumulate their debt and then paying off will be hard. Debts have a way of making life more complicated than it should be; owing debts costs you a lot more than money and can be a serious source of stress. It will also make you have problems with people and ruin your relationship with them. It is best to avoid having or accumulating debts for any reason, and if you are already in debt, immediately begin planning a way out of it before it exceeds what you can handle. Discipline is the best way in order to be debt free.
Consolidate Your Bank Accounts
Minimize the number of bank accounts you have. When you consolidate your accounts, it will be easier for you to keep up with them, review them and reconcile your statements. Consolidating your accounts will honestly save you time and money on expenses that trail the use of multiple accounts. When you have multiple accounts, you will spend the money you have in all the account. Your mind will be telling you that you have multiple accounts so why are you scared to spend the money?
When you work on budget, be rest assured that your financial life will be free. The importance of budgeting in your financial life cannot be overemphasized. Budgeting has been many times referred to as the key to financial security and is a great way (if not the only real way) to keep track of and organize your spending. If you go shopping at the end of every month, write down what you know you really want and you feel it’s important. Just ensure that when using a budget you respect it and you are disciplined enough to let it guide your spending.
Cut Down or Cut out Subscriptions or Services you don’t need or Use Regularly
Review your subscription and services, identify the ones that are more or less defunct and cut off payments on those subscriptions or services that you no longer need. Maybe you have like two android phones, and you always subscribe them very month. Then you need to cut down, just use one phone to subscribe and you can use it to browse. If you are not the type that is always at home, there is no need for you to subscribe your DSTV since you don’t watch TV. This will help you to significantly simplify your finances and cut back on unnecessary expenses. The fact is, the fewer payments you have to make, the simpler your finances will be.
Are you always in a financial mess? Follow these guidelines and you will really save yourself from unnecessary financial mess.
By Pupwaya Timothy Dibal