Financial Education

5 ways to simplify your finances

Less is more! Understand how it is possible to simplify your financial coming to have more quality of life and even profit more. Here are some useful tips for that!

Advertisement

Organize and simplify your financial life starting today!

Free woman meditating (simplify your finances)
Learn to live the simple side of your finances. Source: Pixabay

In fact, the old advice that “less is more” also applies to economic life. In this way, simplify your finances can bring much more than money into your life.

people inside an airplane

7 best ways to earn miles

Learn the basics you need to know about frequent flyer programs, how to earn miles, and make your next trips for little or nothing!

Next, understand how it is possible to simplify your financial life without losing quality!

Want to simplify your finances? Follow these 5 easy steps!

In fact, in finance, it is possible to reduce to have more. This idea seems contradictory, but they have a very simple relationship to understand.

Anyone who decides to simplify their financial life can do much more than just run away from useless fees and services.

Those who simplify have much more “peace of mind” because they have fewer worries and decisions. To simplify your finances is also about the quality of life and mental health.

Below, learn about five ways to promote a beneficial simplification in your financial life:

You don’t need every bank account you have!

In fact, in many cases, many financial accounts no longer mean benefits. On the contrary, you will have more fees to pay.

Also, your money will be spread across many accounts, making it difficult to manage these assets. You’ve often created accounts to get perks you never really enjoyed or don’t use anymore.

Thus, it is much more advantageous to concentrate your money in one or a few accounts. The same goes for savings accounts.

Your wallet doesn’t need to be full of cards

Bank marketing has become an expert in attracting customers by offering credit cards. Some collect and are proud to say they have six or more.

At first, you take out a card to better manage your bank account. Then a card to earn miles, another for rewards programs, another to transfer balance, and another to take advantage of the 0% APR period.

So managing all these products requires energy and time. In addition to making your financial life disorganized, this collection of cards interferes with your health.

Some researchers have linked using credit cards to increased stress levels. Simplify: choose the best of these, cancel the others, and have more peace.

Less is more in the financial market too!

stock exchange home broker
The best way to make money in the stock market. Source: Pixabay

In fact, the financial market is an opportunity for you to maximize your income. It’s a way of making “your money work for you”. We at Foster Money encourage you to invest in this market.

But it’s important to know what you’re doing before hitting the “buy” button on the action someone indicated. However, if you want a simpler financial life, here’s some advice: buy funds.

As you already know, you are more likely to profit positively in the stock market by betting on diversification. Funds are pools of selected stocks that you can buy with one click.

So instead of researching stock by stock, buy good funds. We are not indicating this option because it is easier and less stressful. Just see the graphics.

For example, funds that simulate the S&P 500 are more profitable than approximately 90% of other stock market options over the long term. So simplify to earn more.

Watering can watering money

Getting started with investing: 6 best tips for beginners

Start investing in the stock market the right way: read on and get some very important tips for beginners in the investment world.

Simplify your finances one step at a time

Most likely, you have a lot of financial goals and dreams to fulfill. Changing a car, buying a house, traveling the world, paying the bills, investing enough not to have to work…

We know that all these goals are important to you. However, it’s practically impossible to do them all simultaneously (unless you win the lottery).

Therefore, you should not try to fulfill these desires all at once. Your energy would be scattered in many tasks, and none of them would receive the necessary effort.

You don’t have to give up on your dreams but focus on one goal at a time. Organize them into a priority list. Then put together a financial plan to achieve it. When you reach a goal, move on to the next.

Remember: never leave your goals list empty.

Turn off the screens

Indeed, TV and the internet are endless information on any topic. Nowadays, it is fashionable to take a camera and give advice on finances, for example.

That’s not exactly a problem, as it’s part of freedom of expression. However, you don’t have to and shouldn’t go with that flow.

We do not underestimate the power of information but believe that, in excess, it becomes “mental pollution”. Most of the recently consumed content hasn’t made us any smarter.

On the contrary: it left us more confused, stressed, and worried or it just became wasted time. So, for the sake of your financial and mental health, cut down on your time in front of screens in feeds or news.

Keep a safe distance from this stream of information, so you don’t get carried away.

Bonus tip: Use the envelopes to simplify your finances

envelope and dollar bills
The good old envelope strategy. Source: Pixabay

This is an old tactic, but it always works, especially for those with a tendency to spend. To avoid swiping your credit card, which for some feels like “infinite money”, withdraw your monthly earnings.

Just leave a portion of your emergency fund in the account. The rest of your money should be organized into envelopes for each expense: groceries, rent, bills, card balance, entertainment, etc.

Each time you spend, use the money in the corresponding envelope. When this is empty, you will not be able to spend more in that category. This is a simple way to track expenses and stick to a budget.

There is a free way to simplify your finances and budget in seconds with just a pencil and paper.

This method is the most recommended by specialists and is already widely used worldwide. Want to know what budget plan we’re talking about? Access the post below and learn about the 50/30/20 method!

budget graphic

The 50/30/20 budget rule: how to make the most of your money

Know a simple rule to get your monthly budget in order in a few minutes without cutting your spending on fun and saving. Understand the 50/30/20 budget rule!

About the author  /  José Gonçalo

I started reading about finance only to find better options than savings. Since then, I have never stopped studying finance, and I believe that writing about it is the best way to help individuals feel fulfilled and have a healthy financial life. Today, I balance finance and medical school studies.

Trending Topics

content

Navyist Rewards Mastercard® full review: should you get it?

Discover the Navyist Rewards Mastercard®! Enjoy an amazing 30% discount on the 1st purchase! Keep reading and learn more benefits!

Keep Reading
content

OppLoans Personal Loans Review: Quick Cash and No Hidden Fees

Read our OppLoans Personal Loans review and seize financial control with loans up to $4,000, no hidden fees, and credit-building benefits!

Keep Reading
content

Tangerine World Mastercard® card: check out how to apply!

Apply for the Tangerine World Mastercard® card and get up to 2% cash back in categories of your choice and a 1.95% intro balance transfer fee.

Keep Reading

You may also like

content

LoanPioneer Review: Streamlined Loans

Our LoanPioneer review highlights fast loan approvals and extensive lender choices, perfect for diverse financial situations up to $5,000.

Keep Reading
content

BlockFi Rewards Visa® Signature Card full review: should you get it?

The BlockFi Rewards Visa® Signature Card rewards your ordinary purchases with highly valued digital currencies. Find out more here!

Keep Reading
content

FIT™ Platinum Mastercard®: check out how to apply!

Revolutionize your financial life with a card made to build credit and earn up to a $400 limit. Apply for the FIT™ Platinum Mastercard®!

Keep Reading