Basically everyone could use some help when it comes to getting their finances in order. For many this process is a rather complex one; because to some simplicity doesn’t always mean taking the most convenient option. Simplifying your finances involves three steps, organizing, consolidating, and eliminating. By doing these three things it will make it easier to manage your finances.
In part one of this series we dealt with organizing your finances and this series will focus on consolidation and elimination and how it helps to simplify your finances.
Do a monthly review. Most times people start off great with budgeting; however they also tend to forget about it as well. Keeping a track of your budget on a monthly basis will be helpful in steering clear of financial disasters. Based on your monthly tracks and updates if you are having a problem you can quickly identify and fix it from early.
If you want to simplify your finances you will have to consolidate your brokerage accounts. As with your bank accounts, there isn’t any good reason to open several brokerage accounts plus it will a lot harder for you to track your investments. By consolidating your brokerage accounts it will be easier to track your investment portfolios as well as decreasing the risk of overlapping investments.
Another important for you to do is review your goals. If you have multiple financial goals review them and concentrate on just one financial goal at a time. The regular person is always trying to balance more than one thing at once like paying down debt, and coming up with a down-payment, or saving for retirement or other goals that they have set. However by eliminating some of these for a while and concentrating your energy on just one goal at a time you will be able to address each goal individually. So if you’re saving towards a down-payment, then just focus on that until you have accomplished it, then you can move on to the next one.