Managing your finances can be a challenge. Fortunately, with a little planning you can simplify your financial management, saving you time, energy, and money. Check out these five ways to declutter your finances.
Go digital.
Do you have stacks of mail, bills, and statements that pile up? An easy way to avoid the clutter is to move to paperless billing and e-statements. Most companies and banks also allow you to automate monthly payments, like utility bills, insurance, and loan payments. By making these payments automatic, you can save significant energy and time. Just be aware of when automatic payments occur and make sure that there is enough money in your account to cover the withdrawals. AGFinancial offers electronic statements, among other paperless options, to help declutter your mailbox. Sign up here.
Create a debt payment plan.
When you pay off debt, you free up additional income which can be used for savings, retirement, or investments. There are several ways to pay off debt, but the most common are the debt avalanche method and the debt snowball method. With the debt avalanche plan, you use the money you have left over each month after paying bills and other expenses to pay down the debt with the highest interest rate first. The debt snowball method involves using your leftover income to pay down the debt with the lowest amount first, regardless of interest rate. No matter which method you use, paying off debts will reduce your number of monthly transactions, simplifying your finances.
Combine your insurance policies.
Just as having multiple accounts at multiple banks overcomplicates your finances, having insurance policies with different companies may create unnecessary financial stress. If you bundle all your insurance policies together with the same company, you can potentially save money and simplify your financial life. AGFinancial Insurance Solutions now offers personal lines insurance, so you can cover your life, home, and vehicles all in one place. Click here to request a quote today.
Consolidate your retirement accounts.
Many people have retirement accounts with multiple employers. You can simplify your retirement with a rollover, putting all your funds into one account, whether that’s an 403(b) or an IRA. While you’re consolidating your retirement accounts, consider increasing your monthly retirement contribution. Even an increase of 1% can make a huge difference in your total retirement savings. Determine the impact of increasing your 403(b) contribution with this calculator. Your future self will thank you!
Eliminate the clutter in your home.
Most of us accumulate a lot of things over the years, and our homes fill up with items we don’t need or no longer use. Go through your clothing, books, and household goods and sell the unwanted items online through websites like Craigslist or eBay, or simply have a yard sale. The money you make can be used to start or contribute to your emergency fund. As for the items you don’t sell, donate them to a local thrift store and collect a receipt so you can claim the donation as a deduction on your tax return.
Financial management doesn’t have to be complicated. With a little effort, you can cut the clutter out of your finances and enjoy more free time and a lot less stress.
