It wasn’t until I became an adult and started managing my life that I saw how stressful managing finances is.
Between bills, bank apps, random expenses, and trying to save something for the future, it’s easy to feel overwhelmed, like I did.
However, it doesn’t have to be that deep. You just need to learn practical tips to simplify your finances.
When you simplify your financial life, it’s easier to manage and you’re more likely to stay on top of it.
So, if you’re ready to stop stressing over your money, here are some practical and totally doable strategies for simplifying your financial life.
Also Read: 10 Money Management Tips to Be Successful with Money
Practical Tips To Simplify Your Finances
1. Automate recurring bills
Adulting comes with multiple bills from rent, subscription to light bills and all what not.
Instead of stressing yourself remembering due dates or messing up your phone calendar, you can simply set autopay on all recurring bills.
Thankfully, most services have provisions for autopay; all you have to do is click a button in many instances.
Trust me, it saves you from a lot.
One, you won’t be hit with late fees or service cut-offs. And two, it saves you time and helps protect your credit score.
Plus, one less thing to worry about every month is always a win. Just make sure your account stays funded, so you are not hit with a surprise overdraft.
2. Budget and track your expenses
Not knowing how your money is spent can increase your stress level – I’m speaking from experience.
Plus, if you spend money blindly, you will likely not know how it’s spent.
That’s why one of the best tips to simplify your finances is to budget.
You can use the 50/30/20 budget rule, whereby you save 20%, use 30% for your wants and 50% for needs.
However, this is not a one-size-fits-all rule, because if you have debts, you might need to reduce the amount set for wants and also reduce your savings.
So, find out what works for your specific situation, but make sure it is wise. I added that because using 50% for wants is not you doing what works for you. Your decision needs to be financially prudent and great for your future.
Besides budgeting, you should also track your expenses.
Do that by making a list of your income and expenses, and track everything – even the most random thing.
You’ll be surprised at how much those “small buys” add up.
You can use a tracking app or even a notebook; the point is to be aware.
Once you know where your money’s going, you can tell it where to go next time.
3. Review expenses and cut off unnecessary ones
When you track your expenses, you are likely to come across subscriptions that you haven’t used for months and some you forgot you had.
For instance, you may be subscribed to a streaming service and not have had time to watch the movies.
I know you think you might get back to it, but you might not.
So instead of letting it eat into your income, cancel it.
Make sure to also review your bank statements every few months and weed out the expenses that aren’t adding value.
You might end up freeing more cash than you expected. And that money can go toward your actual goals instead of random charges.
4. Close unnecessary accounts
Well, I was very much guilty of this – opening too many bank accounts I would never use.
Most of them were to help marketers who made me feel like their jobs depended on it, which is why I am gradually overcoming my people-pleasing tendencies.
But that aside, if you are like me and have opened multiple accounts for whatever reason, it is time to declutter.
This is because keeping unnecessary accounts open makes tracking your money confusing and might even cost you in maintenance fees.
So stick to the essentials – a solid checking and a savings account are usually enough. But you can have extra for maybe a retirement fund. But besides those, you don’t need too much.
The fewer the accounts you have, the easier it is to manage your money without feeling all over the place.
5. Recover missing funds
You never know how much you really have until you go looking.
Trust me, there might be cash hanging out in cashback wallets, refunds that never hit, or old accounts you forgot about.
That’s your money; go get it.
You should also take a little time to follow up on owed refunds, unused gift cards, or even unclaimed tax returns.
It might feel like small change, but every bit counts. Even if you use it towards a craving, that’s better than leaving it unclaimed.
6. Leverage online banking
Another way to simplify your personal finances is to leverage online banking. Online banking is your best friend, trust me – it makes life so easy and saves you from visits to the bank.
You can check balances, send money, pay bills, and even set savings goals – all from your phone.
In addition, most apps also send alerts to help you track spending or catch fraud early.
If you’re not already using the full power of your bank’s app, you’re doing your finances the hard way. If I were you, I would go digital today and keep things simple.
7. Automate savings and investments
Don’t wait to “feel ready” to save because you may never do it. But to make sure not to do that and miss out on savings, it’s better to automate it.
Set a fixed amount to go into your savings or investment account as soon as you get paid. For instance, if you get paid on Friday every week, you can automate a certain amount to leave your account on Saturdays.
The same thing applies if you are paid monthly.
That way, you can protect yourself from those moments of hesitation, because they do hit. But trust me, when you treat saving like a bill, you won’t even miss the money.
Over time, those small, consistent amounts add up fast. So, it’s the easiest way to build wealth without needing to think about it every month.
Also Read: Wise Reasons to Save Money for the Future
8. Manage debts
So, you are in debt; I know you would rather not be in it, but no point crying over spilled milk; let’s talk about how to manage it.
Firstly, make a list of everything you owe. Then, you need to prioritise payments.
Remember how I said you may need to forfeit some wants if you are in debt; yes, you should try to pay more than the minimum if you can.
But even if you can’t, the key is to have a clear plan and stick to it. Ignoring your debts will be the worst strategy because they don’t go away.
So, you need to face them head-on and take control, and your future self will thank you.
9. Consolidate your accounts
One of the best tips to simplify your finances is to consolidate your funds into fewer and more functional accounts rather than juggling multiple accounts across banks and apps.
Not only does it make money management easier, but it also helps reduce fees and avoid confusion.
When everything is in one place, you can actually see your financial picture clearly, and you can start making smarter moves.
10. Use money management tools
You are in the 21st century; there is no need living like you are in the 20th century. So, leverage the many tools available to make your life easier, including money management tools.
There are tons of apps that can help you budget, track spending, and set savings goals without much effort.
From free fintech tools to bank-based ones, you can find one that works for your style. They not only make management better, but they also keep you in check and show you where your cash is really going.
Using them, you will be more likely to meet your financial goals.
11. Prepare for emergencies
Life happens suddenly and usually at the worst time. That’s why having an emergency fund is non-negotiable.
Aim to set aside 3 to 6 months’ worth of expenses for those unexpected hits like medical bills, job loss, or major repairs.
Start small if you have to, but make sure you start; that’s what matters.
You should also have the necessary insurance to cover you and your properties when you most need it.
Life can be scary sometimes, but when you are well-prepared, you can have peace of mind. Having a cushion makes financial surprises less scary.
See? Getting your finances in order doesn’t have to involve spreadsheets or giving up your favourite treats. You just need to be more intentional so your money works for you, not the other way around.
If everything looks overwhelming, you can start small. Pick one or two tips to act on today, and build from there. Your future self will be glad you did, and so will your bank account.
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