How to make your finances less overwhelming

Managing your money can sometimes feel like it’s anything but simple. If you have kids, things can be even more complicated. You may have IRA accounts, savings accounts, and checking accounts, and you may also have a mortgage. This can be a lot for you to keep up with. The good news is simplifying your finances can pay off, even though it requires a little effort upfront. This can save you time and even money.

Pay attention to debt

Getting rid of your debt can reduce financial stress, especially if you have multiple debts or those with high interested rates. Getting rid of even one debt can also reduce the number of things you need to deal with each month, freeing up money that can then be used for something else. If you still have student loans, you may want to investigate student loan consolidation options. Having both private and student loans can be overwhelming but consolidating them means you will only have one monthly payment. Plus, it can save you money each month. If you’re interested in student loan consolidation, you can review a guide on your options.

Automate regular bills

One of the best ways you can save money and stay on budget, not to mention simplify money management, is setting up auto-pay for as many billings to clients as possible. This includes rent, mortgage payments, credit cards, insurance, and utilities. List all your monthly expenses and see how many you can automate each month. This also means you won’t have to worry about racking up late fees. You might be able to go to your service provider’s website to set up payments, or your bank may have an auto-pay service you can use.

Consolidate your accounts

No matter your stage in life, you most likely have more than one financial account. While you must have separate accounts for checking and savings, that doesn’t mean you need to have multiple accounts for each type. Sometimes, consolidation can save money. If you have worked at more than one company, you might have multiple retirement accounts, especially if the previous account did not roll over. 

Unfortunately, this can often lead to fees that you are now responsible for. It is possible to roll your previous 401(k) accounts into a single IRA, which can reduce fees. This also keeps everything in one area, and you could even benefit from more options for funds allocation. You can also consolidate multiple savings or checking accounts. This is especially helpful if you can put them in the same banking institution. Some accounts also offer savings and spending features in one account.

Put your savings on autopilot

Remembering to save money each month might not seem like a big deal, but it’s one more step you need to take. Consider automating a portion of your paycheck to go into your savings account each month, or you can set up a recurring automatic transfer from your checking account to your savings account right after each payday. While you might only be able to afford a little each month, doing this consistently means the savings will add up.