Managing your personal finances doesn’t have to be so complicated; it doesn’t have to be such a herculean task. There are ways to simplify the management of your personal finances and get a good grip on your expenses. Jumia Travel, the leading online travel agency, shares 5 useful ways to simplify your financial life.
- Have Just 1 or 2 Credit Cards
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. If you have multiple accounts with different banks, you can decide to just take 1 or 2 of your credit cards when going out to avoid the temptation that comes with having multiple cards.
- Live Debt Free
This is easily one of the best ways to simplify your financial life. 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 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. You need to plan your way out of debt because you can’t just become debt free overnight, you need a plan, discipline and determination to get out of it.
- 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. The same also applies to your retirement accounts, consolidating your retirement accounts will make it much easier to manage your retirement assets.
Honestly, 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. Just ensure that when using a budget you respect it and 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. For the subscriptions or services that you don’t use regularly, you can stop payment for them in the meantime and continue when you do need them. 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.