Tips for Simplifying Your Finances in the New Year

When it comes to setting money goals, many people overlook the benefits of simplifying their finances. However, one of the best ways to stay on top of your finances for the coming year is to simplify them. As you consider your goals for the new year, don’t forget to consider simplifying your finances. Here are a few things you can do to make your finances easier to manage in the coming year:

simplify finances

Reduce Your Duplicate Accounts

Maybe you opened some savings account in the past in order to get a sign up bonus. Perhaps you have a few different investment accounts due to job changes or promotions. Take a look at your accounts and see where you might be able to combine them. You could see some better results long term by combining your accounts, rather than leaving them spread out. Reviewing your finances might also indicate where you are paying fees that can drain your wealth. Do what you can to consolidate your money and move it to accounts that have fewer fees and higher rates of return.

This consolidation can work beyond just your financial accounts. It’s worth noting that you can also simplify by getting your insurance policies in one place. See if you can get a better deal by keeping your home insurance policy at the same company as your auto insurance policy. If it makes sense, depending on your health plan and your partner’s plan, it might even make sense to move your entire family onto one health plan.

Automate

You might be surprised at how much simpler things are when you automate your finances. Once you have consolidated your accounts so that you know where the money will come from, you can automate your finances. Try to get as many bills as possible to be automatically debited from your account. You can also automate your investing and saving, ensuring that you are always putting money toward the future.

When automating, make sure that you spread out the due dates, though, so you don’t wind up with everything coming out at once and draining your account. Plan ahead so that your withdrawals are staggered. It’s amazing how much peace of mind you can have when you automate and don’t have to worry about bills being paid on time. You do need to make sure that you check your accounts every so often, though, to ensure that everything is working as it should.

Evaluate Your Credit Cards

Finally, you can simplify by evaluating your credit cards. Figure out what you want to accomplish with your cards (air travel, cash back, balance transfer, etc.), and then get rid of cards that don’t fit the bill. I have a card I use for everyday purchases, and this builds up travel miles. I’ve got another, for online purchases, that is connected to Upromise and results in cash that is deposited in my son’s 529. There is also a card I like to use as a backup for emergency situations. It doesn’t get used much, but I like to know it’s there, just in case something happens to my other cards.

Slimming down your wallet and your accounts for the new year, and simplifying your finances, can help you better manage your money this year, and in years to come.

About the Author

Miranda is a freelance writer and professional blogger. See more of her writing at MirandaMarquit.com. Her book, Confessions of a Professional Blogger is available from Amazon.