There’s no shortage of personal finance advice out there—in books, magazines, podcasts and online. But some lessons seem to sink in only when you learn them on your own. Making a devastating financial decision or facing a bad money habit that eventually catches up with you can change the way you view your finances.
Over the course of my career, I’ve made countless financial decisions that I learned from my MBA teachers, experienced financial planners and well-known money gurus. But here’s some advice that I never got, and had to learn on my own: The simpler your finances, the better off you’ll be. Here are some ways that I’ve simplified my own financial life over the years.
Consolidate Your Financial Accounts
Having fewer financial accounts can make your money easier to monitor, while cutting paperwork and reducing the paper trail at tax time. By doing regular checks for places to consolidate your investing, retirement, bank and insurance companies, you can reduce fees and find discounts.
One question I often receive is how to manage old retirement accounts that remain with previous employers. My advice is to roll them into a single IRA. It will help you keep tabs on how much you have for retirement and know how much you need to invest each year to reach your goals.
If you make it a priority to organize your finances, you’ll feel more in control of your money. Plus, you can trim expenses, reduce hassle and save time—so you can spend it doing something you enjoy.
Automate Your Savings
Another great way to save time and simplify your finances is to automate your savings. Setting up automatic deductions is a simple, but tried and tested, way to build wealth.
Automation works because you may be otherwise tempted to spend money that you shouldn’t, just because you see it in your account. To be successful, you must be realistic about ways you could slip up, and then create solutions that force you to maintain good habits.
When you set up consistent, automatic deposits, you put money aside before you see it or get tempted to spend it. Putting your financial future on autopilot is another way to simplify your life and slowly get rich. Slowly but surely, you’ll create wealth for a comfortable retirement.
Pay Bills Online
For recurring bills, such as rent or a car payment, you should set up automatic online payments, or enter them manually every month. Many banks can request e-copies of your bills and act as a centralized hub for all of your necessary payments. At a glance, you can see your pending payments and the history for each biller in your account.
You can also create customized email alerts to inform you when a bill has arrived or to remind you about the due date. That’s a handy way to make sure your bills are paid on time, so you can eliminate late fees and boost your credit score. Let technology help you make sure nothing falls through the cracks.
Subscribe for Bulk Purchases
Another way to simplify your financial life is to buy nonperishable groceries via subscription. Not only does it save a trip to the grocery store, but you can save a substantial amount of money over time.
For my home, I buy garbage bags, paper products, cleaning products, soaps, vitamins and office supplies in large quantities. I’m confident that I’ll use them. Additionally, some grocery items with long shelf lives—such as coffee, popcorn, cereal, rice, beans, pasta and canned food—may be smart bulk purchases, as long as you know you’ll consume them before they expire.
Buying in bulk is a good way to save money, and some subscription services offer discounts as well. You can set up the delivery schedule you need, and you can cancel your subscription at any time. It’s a great way to simplify the chore of shopping.
Look for Other Ways to Simplify
If you’re like me, once you begin simplifying your finances, you’ll see how it can extend to your entire lifestyle. It may make sense to move to a less-expensive or smaller home, which can cut many other expenses, such as insurance, utilities, furnishings and upkeep.
But if a move seems too drastic, you can look for ways to simplify your spending on vehicles, sporting goods or clothes. Having fewer, but higher-quality items can pay off over time. Simplifying your life may be the ticket that helps you save more money for the lifestyle of your dreams.
Laura Adams is a personal finance expert, the host of the top-rated Money Girl Podcast and the author of multiple books, including Money Girl’s Smart Moves to Grow Rich.
Watch this video on the best advice Laura did receive. Or, read more tips from Laura here.