Simplifying Finances is the Key Ingredient to a Stress-Free Life
by Carol Adams Financial AdviserMoney management is an art that is usually
not known to everybody. With increasing age, we tend to have more financial
obligations such as rent, food, bills, car loans, and many other things.
Irrespective of your financial status, we
cannot afford to procrastinate these expenses as they are a necessity for a
decent living.
Many people feel stressed while managing
their finances. They tend to feel burdened while sorting their financial life.
If you are feeling stressed too, then it’s time to simplify your finances.
To manage your finances more efficiently,
you should follow a minimalist money management approach. This will help you in
cutting down complexity in your finances and relieve your stress too.
With the following money management tips,
you can help yourself by making things easier for you:
1. Auto mode
This is one of the best ways to sort out
your finances. Whenever possible, set your payments on auto mode. Setting your
finances on the auto mode will not only help you to worry less but also will
help in timely payments.
This is an excellent way to be on time for
your payments. Once you have done this, you have also helped yourself by fixing
one less thing to think about.
Nowadays, there are many financial
applications available to automate your financial cycle.
These applications help you to set recurring
transfers and bill cycles. Before automating, you need to ensure a decent
balance in your bank account to complete your payment cycles every month.
2. Go Paperless
In this time of digitalization, everything
is accessible with just a single click.
With everything going digital, it is
essential to stay updated with the technology and make the best use of it. It
is advisable to keep a digital copy of all your important documents.
One of the significant issues faced by
people is organizing and sorting finance-related documents. Maintaining a
record of all the finance-related bills, tax documents, investment receipts,
bank statements, and other essential documents can be a struggle at times.
To avoid this hassle and stress, you can
opt for a paperless experience and have easy access to your documents at the
same time.
With documents available at a single
click, you do not have to worry about searching for your misplaced documents.
Another way is to set up a digital archive
of your important information, and you are sorted financially.
There are many applications at your
disposal, which help you to segregate your expenses under different heads such
as groceries, food, entertainment, healthcare, etc.
You can go for an application to make
things easy for you.
3. Accounts Consolidation
It is always better to have one account
rather than maintain four accounts at one time. To simplify your finance, consolidate
all your accounts into one.
This move can prove to be a good money
saver for you. With the consolidation of your accounts, you only have to take
care of one account and are aware and clear about the funds that you have since
there is only one account to operate.
In case of a credit card, if you have
separate cards for every account, you can choose one of them which offer
maximum rewards and is of maximum usage to you.
4. Debt-free
Being debt-free is the biggest stress
reliever. To manage your finances, you should go for the best management idea,
i.e. to go debt-free.
Once you opt for the approach of going
debt-free, you will know the relief that comes with paying off your loan
obligations and debts.
For doing so, you have two methods to follow.
One of them is the debt snowball method that encourages you to pay more than
the minimum amount on your smallest loan first, irrespective of the interest
rate.
This method helps you focus on the
repayment. With each payoff, there will be a feeling of accomplishment,
inspiring you further to pay off your further debts.
Another method is the Debt Avalanche
method that focuses on the debt repayment with the highest interest rate first.
The main aim of this method is to make you pay less money as interest over a
long period.
6. Goals
We all have different goals in life. Some
of us may have a goal of buying a bigger house, while some may have a goal of
buying an expensive car.
With too many financial goals at one time,
it is always advisable to manage your goals most efficiently.
It is essential to focus on the most
crucial goal first, then focus on the less important ones.
Once you attain the essential goal first,
you will experience satisfaction, and at the same time, you will feel motivated
to accomplish your further goals.
Simplify and Relax
Many people go through stress and anxiety
due to their financial burden and not having the capacity to repay. Many people
borrow loans to pay off their debts and free themselves from their financial
burden.
Many people prefer to borrow 12-month payday
loans since they are a more comfortable option.
Direct lenders only offer these
loans. They also offer installment loans for
bad credit history individuals.
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Created on Dec 14th 2020 06:48. Viewed 305 times.