Do you are your spouse manage all of your financial matters? If so what happens to your personal finances if the other is hospitalized or unexpectedly passes away? Would the non-CFO of the house know what to do to manage the family finances? In my post Financially Prepare your Spouse in order to Simplify I explain what the non-spouse needs to know in order to manage the family finances. Now its time to take it a step further. In order to make it even easier for the non-CFO spouse, you must create a file to explain what needs to be done to manage the family finances. I would label this file Emergency Financial File. This file should be filed with all of your other financial documents or in a location your spouse has access to and can quickly put their hands on it when needed. I would even purchase a red folder so it stands out from all of your other files.

This file should contain the following information:

Passwords and Login IDs
If you are truly trying to simplify your personal finances most of your personal financial information should be accessible online. You want to leave a listing of all of your passwords and log in information in the file. Make sure you are updating the file when you change any of your passwords.

Account Numbers
You want to leave a listing of all account numbers. This should include deposit accounts numbers, credit card account numbers, investment account numbers, retirement account numbers and any other financial related account number. If you have multiple banking relationships be sure to identify each bank as well. You don’t want them guessing what account number goes with what bank. A simple way to do this would be to make a copy of the first page of each account statement at least once a year and place the copy in the file.

Contact Names
You want to make a list of all financial contacts and place them in the file. These contacts should include all insurance contacts, accountants, attorney, investment advisors, and bank contacts. Many of these contact names should be on your account statements.

Location of assets
By keeping a copy of the statements this will help identify the location of assets but don’t forget those assets that you may hold in a safe deposit box or in personal home safe. Many individuals hold important financial documents, wills, jewelry and stock and bond certificates in deposit box or safe. You want to identify where those assets and documents are held. NOTE: If you hold assets or documents in safe deposit box make sure your spouse has access to the box and knows where the key is located.

Listing of all expenses
Create a list of all expenses and due dates so if your spouse had to step in and take over the finances. They would be aware of what needs to be paid and when it is due. Yes a bill may come in the mail but its better to provide them a list so they know what needs to be paid and when.

TAKE ACTION
Begin gathering all of the information discussed above so you can create your Emergency Financial File immediately. You just never know when it will be needed. The more information you provide the easier it will be on your spouse or whoever is left to manage your personal finances.

Remember take one step at a time to simplify your personal finances.

If you enjoy what you’re reading and want to stay up to date on the latest posts please make sure you follow me on Twitter and subscribe to my RSS feed. If you are serious about simplifying your personal finances also subscribe to SIMPLE FINANCIAL LIFESTYLE NEWSLETTER.

If you enjoy what you’re reading and want to stay up to date on the latest posts please make sure you follow me on Twitter and subscribe to my RSS feed. If you are serious about simplifying your personal finances also subscribe to SIMPLE FINANCIAL LIFESTYLE NEWSLETTER.

If you want to simplify your personal finances, we have to give up somethings or break old habits. But by giving up old habits, we can make our financial life simpler, however, we don’t always see it that way. We want to continue to do things we have always done them but expect our financial situation to change. It does not always work that way so if you want to simplify your finances are you willing to give up somethings you believe you cannot seems to live without.

Here are somethings you will have to give up in order to simplify your finances but I am not sure everyone is willing to give these up:

LICKING STAMPS
I know you like the taste of the stamp glue and the continuing raising the stamp price but you must stop licking if you want to simplify your finances. You may have an addiction but I am sure you can overcome it. You must give up the stamp licking because you will not have to mail your bills. To simplify your personal finances you will have your bills paid directly from your bank account or directly charge your credit card. I don’t recommend going cold turkey on the stamp licking. I know it is a hard one to get over so slowly reduce the number of stamps you have to lick over the next few months.

RECEIVING MAIL
I know you find pleasure in going to the mail box everyday to see what bills or junk mail the mail carrier has delivered. You will have to give this up because all of your bills should be received electronically if you want to simplify your finances. It may take sometime to get over going to the mail box but I am pretty sure you can handle not going.

PAPER CHECKS
Many of us enjoy writing out that check to purchase items at the store and to pay your monthly bills. If you plan on simplifying your finances you must be willing to leave those paper checks at home. You should instead pay your monthly bills with your online bill pay service or use debit card, credit card, or cash to make your purchases. There are several reasons while these other methods of payment are better than paper checks.

THAT OTHER BANK
I know its easier to just go to the ATM that is closest to you even if its not your primary bank. Its always easier to pay the transaction fee instead of using your bank and not have any ATM fees. If you want to simplify your personal finances you must give up one of those banks. You are not benefiting from using another bank if you are just using it for convenient purposes and paying a fee for the convenient. Decide which bank provides you with the services you need and dump the other one. It’s easier to open another account because they offer a higher rate.

3rd or 4th CREDIT CARD
I know your wallet will become depressed if card #3 and #4 are no longer members of your wallet club. You enjoy using card 3 and 4 when card 1 and 2 have reached their limit. Card #3 and #4 come in handy when you are in a bind. If you want to simplify your finances your wallet will have to get over the lost of card #3, #4, and even card #5. To simplify your finances your goal is to eliminate as much debt as possible. By not have those cards you can focus on eliminating any balance you may have on them. Two cards should be enough to manage your finances.

REGULAR BANK VISITS
I know you enjoy social hour in the teller line and seeing that bright shining face in the drive-thru but if you simplify your finances you can eliminate your time at the bank. Simplifying your finances means you sign up for online banking and you have your payroll check deposited directly into your bank account. This will allow you to eliminate those trips to the bank.

STRESS
I know many of us stress over our personal finances because we have not simplified. If you simplify your finances you can reduce your stress level because your finances should be organized, payments should be automated, you should have a plan in place to reduce your debt, and you should be living within your budget or spending limits. Having these in place will eliminate or reduce your stress level.

Now is time for the truth can you live without these things so you can simplify your personal finances. If so, its now time to TAKE ACTION. Decide which of these you can live without and put an action plan together to simplify.

Remember take it one step at a time in order to simplify your personal finances.

With interest rates at their lowest in decades many of us are considering refinancing our mortgages.

Refinancing your mortgage can help you simplify your personal finances since interest rates are so low? Should you refinance now is a good question to ask yourself but it will depend. There are several reasons why you should consider refinancing and low interest rates are only one of the reasons why.  Yes a lower interest rate rate can save you money but make sure you consider these questions before you decide to refinance your mortgage.  It will help simplify the refinancing process.

#1 What is your current interest rate? Before you consider if you should refinance or not you must know what your current interest rate is.  Is your current interest rate a fixed rate or an adjustable rate?  If you currently have a fixed rate, what is the difference in your existing fixed rate and the current market rates.  If you have an adjustable rate it is important to know the difference in your existing rate and current rate but you also want to know when your adjustable rate will adjust.  This can significantly impact when you need to refinance or not.  Also what will the rate adjust to on the adjustment date?

#2 What type of mortgage do you have? Is your existing mortgage a 30 year fixed, 15 year fixed, or 7 year, 10 year, or 5 year adjustable rate mortgage?  Understanding your current terms will help with your decision.

#3 What is the estimated value of your home? You want to know if your home has increased in value or decreased in value.  The reason you want to know this is because a decrease in value can have a impact on the refinancing of your mortgage particularly if you owe more than your home is currently worth.

#4 What will be your estimated closing cost? You want to know how much the refinancing will cost you.  Do you have the funds available?  The closing cost will include title work, appraisal fees, and any leader fees they may charge.  So make sure you ask before you start the refinancing process.  Your lender should be able to give you an estimate of what the closing cost will be.

#5 How much will refinancing save you? Saving over the long term is the reason most people refinance.  So calculate your total monthly and yearly savings.  Also remember to add in the closing cost when calculating your total savings.  You don’t want your closing cost to negate your savings.

#6 What is your lenders underwriting criteria? Due to the current economic conditions many lenders have tightened their underwriting standards.  Be sure you understand their criteria.  For example,what type of credit score is required?, What are their loan to value standards? and What financial documentation will be required?

#7 How long do you plan to stay in your existing home? This helps to understand what terms are best for your situation.  For example, if you know you will be moving or purchasing a new home within 5 years do you want a 30 year fixed mortgage. Maybe or maybe not. If you plan to stay in your current home for the next 10 years do you really want the 5 year adjustable rate mortgage just because the rate is lower rate.

TAKE ACTION by answering these seven simple questions before your begin the process of refinancing of your mortgage. Remember take one step at a time to simplify your personal finances.

If you would like 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.

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?

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.

This post was featured in Carnival of Personal Finance: Parts of Speech Abuse Edition hosted by Mighty Bargain Hunter.

An easy way to begin to simplify your personal finances is to stop writing checks.  Yes I am serious.  You are probably wondering how will I pay my bills.  Well this week’s simple tips will provide you with 5 tips to help you eliminate checking writing and simplify your personal finances so you can create a wealthier and healthier lifestyle.

Here are this week’s simple tips to help you eliminate writing checks to enable you to simplify your personal finances:

• Step up automate bill pay – a great way to eliminate check writing is to use a automated bill pay service.  See post  Who else wants to save money and have less stress when managing their personal finances

• Sign up for on-line banking – Instead of keeping a check register and have to reconcile your check book at the end of each month, signing up for online banking enables you see to  your accounts online to see what has cleared and not cleared.  Save you time.  You can even use your bank’s bill pay service if its offered.

• Use credit cards or debit card to make purchases – Have all of your monthly bills charged to your credit card or debit card.  See post Two card financial trick to simplify your personal finances

• Can help eliminate ID thief – Your paper checks has valuable personal information on them such your name, address, bank  account number, and signature.  I have seen people include their driver’s license number.  That’s a little too much information.  All of this information can be used by anyone who sees your check.  So not writing checks can reduce the risk of ID thief since this information will not be seen by everyone who handles your check.

• Saves time and money – Not not having checks to write on a monthly basis saves you time since you should have all of your bills paid automatically.  Its saves you money since you will not have to purchase checks or stamps.

ACTION STEP

By the end of this week try to implement one of these 5 steps to help you eliminate the need to write checks.  If you just start with one monthly bill at first then eventually have all of your bills paid automatically, at least you have taken action towards  living a simplified financial lifestyle.

If you liked these tips and want to learn more, make sure you subscribe to simple financial lifestyle email newsletter and subscribe to RSS feed for blog updates.

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

Are you tired of those monthly banking service fees?  Do you dread seeing that monthly service charge on your bank statement? Do you ask yourself why do I have to pay a fee to keep my money in the bank?  Don’t you wish you could get your banking for free or deserve free banking for being a long time customer.  Here is how you can make that wish come true of completely free banking or at least reduced fee banking:

Eliminate the ATM fees – Tired of those non-bank ATM charges showing up on your monthly statement.  Review your ATM usage.  Are you using the first ATM that you see or the most convenient one which unfortunately is not your bank’s ATM.  To eliminate the non-bank ATM fee only use your bank’s ATM or ATM network.  You could also withdraw money from your local store that accepts debit cards.  No fees associated with cash back when you make a purchase.  Also for more tips on how to eliminate the non-bank ATM fees read  6 Ways to Knockout ATM Fees.

Prevent overdraft fees – Do you have a tendency to overdraft your account every once in awhile which result in overdraft fees?  Establish overdraft protection for your primary account by linking it to a saving account or a credit card.  Some banks may still charge you for using the overdraft protection but it will be less expensive than the NSF charge by your bank as well as the merchant.  The best way to eliminate those pesky overdraft charges is to set up an alert on your account bank account to alert you that your account has reached a minimum balance that you have established.  For example you may want to keep a couple hundred dollars as cushion in your account so you do not overdraw your account.  Then set up an alert to notify you when your account has reached your predetermined cushion level.

Avoid those monthly service fees – These fees can usually be avoided if you keep the minimum account balance in your account.  To do this you want to know up front what the minimum account balance is so you can maintain this balance to avoid incurring the monthly service charge.  If you have multiple bank accounts consider consolidating them so you can maintain the minimum balance to avoid the monthly service charge.  Also if you have multiple banking relationships consider consolidating them to your main bank this way you can avoid the monthly service fee.  Also read my post Things to Consider when Opening a Bank Account.

Avoid wire fees - Do you wire money every time you need to send money?  If you are just sending money to a friend, relative or paying a bill, you easily send it by automatic clearing house (ACH) instead of wire without the fee.  Unless the money is a significant amount for example to make a large purchase and you should send by wire to make sure it was delivered and it can be tracked.

Avoid check fees - Are you tired of paying for checks?  Stop writing them.  You ask how will I pay my bills if I can’t write checks?  Easy either have all of your bills paid by credit card or sign up for online banking bill pay service with your bank.  See post Who Else Wants to Save Time and Money.  Using either of these methods to pay your bills will not only eliminate the need for checks it will also simplify your personal finances.

So the next time you open your monthly bank statement and see one of these fees on your statement remember these five ways to eliminate or reduce those fees so you can simplify your personal finances as well as stop giving your money away to your bank.

Do you dread seeing those non-bank ATM fees on your bank statement?  Do you wish you could eliminate those fees?  Well today is your lucky day.  Here are six ways to help you eliminate those pesky non-bank ATM fees while simplifying your personal finances at the same time:

Know your cash needs – Many times the reason we are charged those non-ATM fees is because we do not plan ahead.  Knowing your daily cash needs will help you avoid using the non-bank ATM.  Creating a budget or spending plan will help you determine your daily cash needs.  By having budget you will know what your cash needs are so you will not have to visit that non-bank ATM and incur those dreaded ATM fees.

Limit your ATM transaction - Try to limit your ATM use to once per week when you know you will be able to use your bank’s ATM.  I will assume your bank is either close to your home or job.  Decide what day of the week is most convenient for you to make your weekly withdrawal so you’re not spending unnecessary time searching for your bank’s ATM or being charge unnecessary fees because you did not plan ahead.  If you only go to your bank’s ATM once a week it also helps you control your spending because if your out of cash you know you have gone over your weekly budget.

Use only your bank’s ATM – The easiest way to eliminate those ugly ATM fees is to only use your bank’s ATM.  If you find yourself constantly using the same non-bank ATM, why not consider either opening an account at that bank or moving your entire banking relationship to that bank.  See Things to consider when opening a bank account.

Use debit card instead of cash – Stop using cash will eliminate your ATM usage.  How can I stop using cash?  Begin to use a debit card for all of your purchases instead of cash.  Most places will accept debit cards.  Not only will using a debit card eliminate the need to withdraw cash it will also help you manage your spending.  Every time you use your debit card it will be shown in your account activity on your bank statement or shown online.  Many times we forget how much we spend when we use cash unless you keep track of your cash receipts.  With a debit card you do not have to keep track of your spending it will automatically be tracked ever time you use your card.  This will help simplify your personal finances.

Use credit card instead of cash – Similar to using a debit card you can use a credit card for your usual cash purchases.  Using a credit card will also enable you to track your spending.  Using a credit card you may benefit if you use a rewards card.  I would only recommend using a credit card if you pay off your account balance at the end of each month.  DO NOT USE A CREDIT CARD if you carry a balance on your card every month.

Get cash without using an ATM – The old fashion way to withdraw money is to go to your local bank teller and request a withdrawal from your account.  This is probably not the most convenient way but it still can be done.  Another way to get cash without using an ATM so you can avoid non-bank ATM fees is to receive cash back when you use your debit card for purchases while shopping at your local grocery store or local drug store.

Take action to eliminate those non bank ATM fees by reviewing your ATM usage for the week.  Think about how many times you used the ATM and how many times you were charged.  Now determine how you will change your ATM usage to simplify your personal financial lifestyle.  Let me know how you have eliminated or reduced your ATM usage to avoid those pesky non-bank ATM fees.

We all do it but not intentionally. We open multiple personal bank accounts without considering the reason we opened them. You then end up having more accounts then you need which makes it harder to keep track of your money. Here are things to consider before you open your next bank account in order to simplify your personal financial lifestyle.

Purpose – Before you sign the documentation to open another bank account you must determine the purpose of the account. Ask yourself the following questions:

* Why do you need to open a new account?

* Does your existing account not meet your banking needs?

* Will this new account be your main checking or saving account?

* Are you looking to establish another banking relationship?
* Are you opening this account for business purpose?

Answering these questions will help you clarify the need for a new account.

Safety – How safe is the bank? With multiple banks recently failing, you have to ask the question, will this bank be around at the end of the year or even in six months. If you’re opening a new account, you want to be able to sleep at night knowing your money will be safe. This tool at Bankrate.com can help you determine the safety of your bank.

Convenience – How convenient are the bank branches and ATMs for this bank? How often will you use this bank’s ATMs or branches? Will you need access to these funds regularly.

Online capabilities – Will you be able to view your account online and are there other online services available such as bill pay services or account alerts. Does your existing bank offer these services?

Fees – Will there be a monthly service charge for this account? If waived initially how long of a period will the fee be waived? Will you have to maintain a specific amount in this new account to avoid fees or to receive priority services or better rate?

Rate- What interest rate will this account pay? Is the interest rate on your account an introduction rate if so how long will you receive this initial rate? What will the rate be after introduction rate expires?

Other banking services- what type of service are you looking for? Are you just looking to use the deposit services of this bank or you looking to us other banking services such as safety deposit or bill pay services. What services are provide at this bank that are not provided at your current bank? Are does this bank provide better customer service than your existing banking?

Remember in order to simplify your personal finances you want to limit the number of bank accounts you have to manage so stop and think before you open your next bank account.