4 ways to simplify your personal finances in 2022

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Here’s how to get your financial house in order.

Key points

  • It is important to have solid management of your finances.
  • These moves could help you increase your savings, avoid debt, and even improve your credit score.

Even if your personal financial situation isn’t that complicated—for example, you’re a salaried worker who rents a house and has mostly predictable monthly expenses—managing money and bills can be complicated and time consuming. But getting his finances under control is important and could be his ticket to a more stable and healthy outlook. Here are four steps you can take to simplify your finances this year as you work toward your goals.

1. Get a quote

Following a budget will help you understand where your money is really going each month. It might also point you to changes worth making that will help you increase your savings and avoid debt.

There are different options that you can use to set up a budget. If you prefer the old-school method of writing down your bills on paper and tracking your expenses by hand, that totally works. If not, you can create a spreadsheet or find a budgeting app that’s easy to use.

2. Automate your invoices

You probably have certain bills that cost the same amount of money every month, like your rent, car payment, and cable TV plan. Setting those bills up for automatic payment could take a chore off your hands. Just as important, by putting some of your bills on autopilot, you’ll reduce your chances of falling behind on a payment. That could, in turn, help protect your credit score from damage.

3. Consolidate your debt

If you owe money on different credit cards, you may have a hard time keeping track of those various balances and remembering to make your minimum payments. That’s why consolidating your debt is a good idea. Not only could it help you stay organized, but if you consolidate strategically, you could end up spending less money on interest.

Imagine you can do a balance transfer, where you transfer your various credit card balances to a single card with a 0% introductory APR. That alone could save you money as you reduce what you owe.

You may also consider consolidating your debt with a personal loan. If your credit score is pretty good, you can get an affordable rate on one of these loans that’s much lower than what your credit cards charge you.

4. Go paperless with bank and credit card statements

Those monthly statements from your bank and credit card companies? They’re packed with personal information that you can’t afford to leave in the wrong hands. That’s why going paperless is a good idea. Not only will it help ensure your statements don’t get lost, but you won’t have to deal with filing or shredding those documents on a regular basis. And if you’re the type who just doesn’t like clutter, paperless is the way to go.

The last thing you want is to have to spend hours every week dealing with bills and money matters, not when you’re busy working, taking care of a house, and maybe even trying to have a social life. These four moves could help you simplify your finances and free up precious time for you to enjoy.

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