Simple Personal Financial Tips – Cash Only

Do you want to simplify your personal finances and stop spending more than you make each month. Have you consider going to a cash only financial lifestyle? We have all heard the term Cash is King. Well its true but not only is cash king. Its also simple. Using cash can help you simplify your personal finances and help you live a debt free financial life.

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Here are this week’s simple finance tip to help you simplify your personal finance by using cash:

No monthly bills – if you pay with cash there will be no bills to pay at the end of the month. You pay for it and you are done.

Use it up no more to spend – Once you run out of cash there is no more to use. So you can not buy something if you do not have the money. It helps eliminate buying things that you really don’t need. Because you know your cash is limited.

No additional work to do – using cash you do not have to remember to pay the bill at the end of the month because there is no bill to pay. You do not have to set up auto pay. You do not have to mail a bill. No spreadsheet to track of your payment schedule.

No additional cost when you use cash – You will not have any interest to pay if you use cash. You do not have to pay for stamps or envelopes. Depending on what you purchase you may receive a discount by using cash.

Action Step
Look to see how often you use cash instead of credit. If you see yourself using credit instead of cash consider not using credit for several weeks. This will probably help you manage you finances since you know you can only spend what you have available.

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The Power of 1 Can Simplify Your Personal Finances

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How can one number simplify your persona finances?  Yes it is true.  One number can help you simplify your personal finances.  This number will make things easier for you and will help you reduce your financial stress.  This number is not a large number.  You are probably thinking yes one very large number can help me simplify my personal finances.  If you read Would winning the lottery simplify your personal finances?, you will know that I do not believe having a large amount of money will simplify your finances.  Let me stop the suspense and tell you.  The number 1 can help you simplify your finances very easily.  Think about it if you only had:

One checking account and saving account- you will know where all of your money is held.  There is no need to have a spreadsheet to keep track of all of your accounts.  Less mail to receive with only one account.  Less accounts you have to balance at the end of each month.

One bank – you will never have to think which bank account do I need to take the money from.  No need to think about which online bank account I need to log into.  Everything for your finances can done at one location or one login.

One mortgage – if you need two mortgages to purchase your house should you even be purchasing the house.  You can only live in one house at a time so why would you need two.  Just think of the up keep you would have with two homes.

One car per driver – If you are lucky you may be able to have one car for the entire family.  That would save you alot of money.  But that is not always practical.  So stick to one car per driver in the home.  If you have three cars and only two drivers, how often is the extra car driven.  You can save on maintenance  and insurance by getting rid of that extra car.

One cell phone – unless your job requires you to carry a phone for work.  You do not need more than one cell phone.  Eliminate that additional expense.

One investment account – its much easier to keep track of your investments if you only have one account.  You will have a better understanding of your overall asset allocation as well as keeping track of your investment performance.

One credit card – yes having only one credit card came significantly simplify your finances.  It limits your spending, can help you eliminate credit card debt and enables you easily track your spending and credit card debt.  Eliminates the need to pay multiple bills each month.

One service provider – if you can consolidate your utilites to only one provider that will eliminate the bills you have to pay.  This is not always possible but can simplify your finances if you can do this.

One advisor – do you really need more than one investment advisor or accountant.  Probably not.  Decide which one provides the services you need and best fits with your goals and objectives.

One insurance provider – usually you can consolidate your home and auto insurance which may lead to a discount.  Is there really a need to have separate insurance companies.  Again reduces the number of bills you must pay and keep track of.

So you can see how the power of one can help you simplify your personal finances.

Can you think of any other ways to reduce to one to help you simplify your personal finances?

 

Simple Personal Financial Tips – What’s in your wallet?

If you lost your wallet or purse would you remember everything you had in it?  Miss placing your wallet or purse is a terrible feeling.  I know I would not remember every item in my wallet.   I do know I have carry a credit card or two as well as debit card and driver’s license.  But remembering what other cards are held in my wallet may take me some time to remember.  So why put myself through this stress of trying to remember everything.

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Here are this week’s simple financial tips to help you in case you lost your wallet or purse:

Make copy of all important contents such as credit cards, driver’s license, insurance cards, debit cards and any other card or identification.  I know I do not know my driver’s license number like I know my social security number.  This way if missed place you will have a copy of the information.

Make a list of all phone numbers needed to replace the information that was lost.  This way you will not have to go looking for old account statements.  The numbers should be keep with the copies of the contents so all information can quickly be obtained.

Contact your bank and credit card company to inform them that your cards have been misplaced.  They should be able to send out new cards with new accounts numbers.  If stolen you want to do this as soon as possible so that your cards and accounts can be closed.

Pull your credit bureau several weeks after you misplace your wallet or purse.  You need to do this to make sure no one has tried to use your information to open new accounts.   Reviewing your credit bureau will enable you to see if any additional accounts were opened without your knowledge.

Minimize the information you carry in your purse or wallet.  Limiting the cards and information you carry will eliminate the need to contact every credit card company, bank, or other company you have accounts with.

TAKE ACTION

Review the current contents you have in your wallet or purse.  Decide what you should carry everyday and what should not carry.  Then make copies of the information you believe should be held in your wallet or purse and put it in a file.  This way you can quick know what was in your wallet if you happen to misplace it.

Til next week take one step at a time to simplify your personal financial life.

This post was featured in Carnival of Personal Finance – Parts of Speech Abuse Edition hosted by Mighty Bargin Hunter

If you would like learn more tips to help you simplify your personal finances make sure you subscribe to simple financial lifestyle email newsletter and subscribe to RSS feed for blog updates.

Would winning the lottery simplify your personal finances?

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We all wish it would happen to us one day.  We dream what our lives would be like and all of the things we would buy and the vacations we could take.  But would winning the lottery really simplify your personal finances. It will help you paid off some debt and depending on the amount of money you win you may be able to quit your job. Will paying off debt and quitting your job solve your financial issues?  For some maybe.

However, winning the lottery is a dream many have.  Its the way some feel is the only way they will be able to solve their financial issues. But if you do not properly manage your finances now how would you be able to manage your finances if you won the lottery?  It will not matter if you win the lottery  your financial habits and issues you have now may only get worse.  Even if you won the lottery you would still need to manage your money properly.  Winning the lottery would still require you to:

Set financial goals and objectives – You must know where you want to go.  Do you know where you want to be in one year, two years, or five years from now.    The goals and objectives you establish will be the financial foundation you will build upon.  Without setting financial goals and objectives it is like going on a road trip without a road map.

Establish a budget – Yes you will still need a budget even if you win the lottery.  You can have a bigger budget but you will still need to have one.

Monitor your cashflow – By having a budget you can monitor your inflows and outflows.  You will need to monitor if you are spending more money than you are earning especially if the interest earned on your lottery winnings will be your only source of income.  If you spend more than you are earning regularly you will end up running out of money.

Hire financial advisors – You will definitely need to hire at least an accountant to prepare your taxes and a financial advisor to help you invest your winnings.  You will not want to do this on your own.  Let the experts help you.

Put a estate plan in place – Winning the lottery can have  significant consequences on your estate if you do not properly plan for it.   Your winnings can impact your children’s and grandchildren’s financial future so you want to plan properly if not uncle sam may end up with a significant portion of your winnings upon your death if you do not have a plan in place.

See managing your lottery winnings is no different than managing your current personal finances.  The only difference is the number of zeros on your account balance.    So why not begin to simplify your personal finances just in case you may win the lottery one day.

What are your thoughts would winning the lottery simplify your personal finances?

We all wish it would happen to us one day.  We dream what our lives would be like and all of the things we would buy and the vacations we could take.  But would winning the lottery really simplify your personal finances. It will help you paid off some debt and depending on the amount of money you will you may be able to quit your job. Will paying off debt and quitting your job solve your financial issues?  For some maybe.

However, winning the lottery is a dream many have and its the way some feel is the only way they will be able to solve their financial issues. But if you do not properly manage your finances now how would you be able to manage your finances if you won the lottery? Even if you did win the lottery you would still need to manage your money properly.  Winning the lottery would still require you to:

Set financial goals and objectives

Establish a budget

Monitor your cashflow

Hire financial advisors

Put a estate plan in place

These are things you should be doing now and you have not won the lottery yet.   So if you are not doing these things now how would winning the lottery help you simplify your personal finances.   You will probably say I will have more time to do these things since I will be able to quit my job, or I can hire someone to do those things, or my favorite I will never run out of money.  It does not matter how much money you have you must set financial goals and establish a budget if you want to simplify your personal finances.

What are your thoughts would winning the lottery simplify your personal finances?