I began my journey into minimalism a little over a year ago and soon began to feel the benefits of fewer things and a simpler life.
Starting to conduct a personal financial blog, I began to ask myself how I can use all these principles for my own wallet?
I do not know how you are, but I realized that in my life finances are actively involved. And I felt how they controlled me.
And it's not some ridiculous guesses, given how complex finances have become at all levels, and how fast they are changing.
Here are 11 ways to simplify your financial life and regain control of it in your hands.
Consolidation of bank and pension accounts
Many people are quite comfortable with one account andone savings fund. If you have more, merge your different accounts into one common account and one savings fund. So you simplify your banking business without loss in terms of service.
The same is true for a pension account, if you have themsomewhat due to a couple of previous works, simplify everything by reducing these accounts into one common retirement account. This will not only reduce paper work, but it will also be easier for you to control your retirement savings.
Get rid of paperwork to the maximum
Having several accounts for different financial matters,this leads you to tons of paper work. You may not have time even to read them, but the very existence of a huge number of pieces of paper will only crush.
Fold off all papers that do not have any value, translate all account statements and notifications online.
Leave only one credit card
If you have a passion for rewards and zero interest rates, you probably have a huge number of credit cards. But when the bonuses and zero percent have ended, the value of these cards drops sharply.
Leave them open to watch out forpayments, but focus on using one single card. Choose the one that bears more benefit, the rest set aside. It is much easier to keep track of all the expenses and revenues on one card than when you have 5 or 10.
Get rid of debts
Debts not only cost you money, they alsocomplicate your life. Not only do you need to pay a large number of accounts and if you still have a lot of debts - this is a serious source of stress. Think: every debt that you pay, crosses out of your life unnecessary problems.
One of the best ways to simplify your financiallife is getting rid of debts. This does not happen at one time, just make a plan that needs to be fulfilled, and this will lead you to the desired result.
Invest in funds, not in individual stocks
Investing in stocks can be fun andIt's profitable, but it can be very confusing. You need to learn, buy, track and sell each share in your portfolio. And if you have hundreds of them, it's like having a part-time job.
You can avoid these hassles by investing ininvestment funds or in exchange funds. Index funds are especially attractive, since very few actively managed funds are constantly ahead of the market.
With funds it's also much easier when it's time to file a tax return. Shares require a lot of documentation related to taxes, and also an increased cost of tax payments.
Pay in cash
Yes, it sounds old-fashioned, but it has its advantages.
Use the card to buy something expensive, where the protection of the buyer or a refund can be useful.
Disconnect from all services that you do not use
You probably pay for services and subscriptions,which you hardly use. Getting rid of them, you simplify your life and cross out unnecessary spending from the budget. The less payments you need to make, the easier it will be for your finances.
Reduce your goals
It is very important to have goals to achieve somethingimportant in life. But not with more than one or two goals at a time. Many goals expend your efforts in too different directions, which can only confuse you.
Choose one or two goals that are most important to you, and pursue them with a vengeance and leave the other targets for the next time. The probability of your success in achieving one goal is much higher.
Rent an apartment instead of buying
In our world, possession of real estate bears within itselfemotional peace and long-term financial benefits. But also ownership of real estate bears in itself great expenses and responsibility, which is not present when you are a tenant. For example, you do not need to worry about breakdowns, maintenance or t.zh. The owner is responsible for this.
As a rule, rent obliges you to make only monthly payments and payment of utility bills. All that is not included in it, not your problems. This will simplify your finances and life at once.
Do more that brings more money
This applies in the first place to those whoworks for themselves and commodity agents, but it also suits hired workers. The idea is to focus your time and effort on the work that produces the greatest result. Spend less time on administrative functions or pass them on to someone else. Employees can concentrate on activities that can bring additional bonuses or help with raising the level.
This change can increase your income, and also simplify the very process of earning.
Turn off the TV and more easily access the Internet
Information is good until a certain moment. But after it turns into white noise and only clogs your head. Experts on TV and the Internet constantly tell you what you should do, or stop doing, or buy something, or invest there somewhere. This is a whirlwind of councils, in which every specific advice is always changing, and this flow never stops.
Confusion is not something that will help you simplify your financial life. Limit the amount of information received only to those sources that you trust and turn off the rest.
By implementing only a few of these items, you can significantly ease your financial life.