Stress is a physiological response. Whenever your brain senses stress, adrenaline and cortisol are activated to raise your awareness and energy. However, not every stressful situation requires you to fight or flight. For example, financial stress is often a debilitating mental burden that reoccurs in a chronic manner. Yet there’s no need for your body to fight against a mailed-in bill and running away certainly won’t help, but your brain is still able to understand the consequences of financial problems. Fortunately, extensively reviewing your financial situation and simplifying as much as possible can drastically reduce financial stress.

The Benefits of Organization

Organization is one of the primary elements of successful finance management. Renowned accounting and online bookkeeping schools thoroughly explain to their students that the management of any form of finance is dependent on one’s ability to maintain organization.

In our case, this means the organization of every aspect of personal financing. The idea is to organize cluttered finances and simply things during the process. Categorizing all personal finance files does this. For example, you’re likely going to use the following categories:

Tax files and returns
Investments and retirement
Credit cards
Home
Insurance
Savings and checking accounts
Car and other bills

Initially, it’s ideal to organize these categories using folders and a bin. Sub sections reserved for invoices, outstanding bills and receipts can be created for further simplification. To reduce even more clutter, it’s possible to scan your files categorically save them onto your hard drive to create a organized digital record.

Embracing Technology

With organized personal finances, you’ll at least know where to store your bills and files as your hair turns grey from stress. Now, to actively combat personal finance stress and continue your crusade of simplification, it’s time to embrace technology by learning and using a personal finance software program.

The latest editions of residential-level finance software programs are packed with stress reducing features such as the ability to keep track of checking, savings and credit card accounts linked directly to your online bank as well as PayPal accounts. Budgets can be easily created and manipulated to help you find the most optimal compromise between finances and lifestyle. Most also include various financial calculators to give you a clear picture of your mortgage or home refinancing options. Furthermore, the high standard of helpful tutorials, tip and guides packaged into the software programs are often only bested by the kind of education available at online schools for accounting.

Assimilate or Eliminate

By now, you may have organized your personal finances and simplified things with the help of a personal finance software program, but you still have to continue the simplification process by cutting out the excess and solving two problems with one solution.

Look through your investment and retirement portfolio. Have multiple 401k accounts or one too many mutual funds? It’s likely time to roll it all over into a solitary IRA account and cut down on the investments until you’re only left with your prime mutual funds to manage. This process of simplification through assimilation should also be exercised on your insurance finances and telecommunication bills. By purchasing auto and home insurance from one provider as well as opting for a bundled telephone-Internet-television package from a telecommunications company, you’ll minimize the number of bills to keep track of while likely enjoying a small discount.

You may also find it necessary to simplify through elimination. This is particularly useful for bank and credit card accounts. Pay off the balances on those credit cards you hardly ever use because one or two credit cards for small and big expenses is often more than enough. Similarly, there’s often little need in keeping more than one checking and savings account open. It simply leads to more paperwork management, which is exactly what the simplification process is designed to combat.

There’s no telling how much money, time and strands of hair you can save by simplifying your personal finances to put an end to chronic stress. It may seem difficult to get started, but the stressful day-to-day burden of dealing with cluttered personal finances is ultimately more debilitating than simply working through the process of simplification.

This is a guest post by Connor Groening. He is freelance writing who’s main objective is to educate individual on how to be financially smart. He can be reached at connorgroening@gmail.com if you have any questions or would like to contact him.

A new year is also upon us which means tax time and new year’s resolutions are round the corner. Many of us are still getting over Christmas but a new year is less than a week away. So now is the time to set your financial goals and do some year-end tax planning. Here are some post from this week that can help you plan for the new year:

Wondering where and how to start planning for the new year. This post Start Thinking NOW About How You Will Rock 2011! will help you get started.

If you want to simplify your personal finances, you need to have a budget. Now is a good time to start one if you do not have one or review and revise the one you have. Wisebread offers 8 Tips for Improving or Starting a Budget.

Looking for some additional help with your budget for the new year. Canadian Finance Blog offers 10 Free Sites for Personal and Family Budgeting. I am sure one of these site will help you get your budget in order.

To simplify your finances you should avoid some personal debt. Moolanomy offers some tips in How to Avoid a Personal Debt Crisis.

Sometimes to plan for the coming year its best to review the previous year. Dumb Little Man offers 7 Important Questions To Ask Yourself Before The Year Ends to help you review the previous year.

Its always important to review your tax situation. JoeTaxpayer offers End of Year Tax Tips.

So take some action to start 2011 off on the right foot so you can simplify your personal financial life by planning now.

Take one step at a time to simplify. Have a Happy New Year!!!

Does last minute Holiday shopping cause you stress or cause you to spend more money than you planned? You spend more because you want to just get finished with your shopping. In order to simplify your personal finances you should plan your holiday shopping well in advance so you are not stressing over what to buy and how much money you just spent. I know that is not always possible. We may forget to put someone on your initial list or you are busy with other things and have not found the time to go shopping. If you find yourself doing last minute holiday shopping here are some simple tips to help you simplify:

Keep to a Budget
Many times with last minute shopping we toss out the budget or don’t put a budget in place. You will usually regret it later. So make sure you take some time to set a budget. It will cause less stress on your finances if you use one.

Make a List
Just like having a budget you must go shopping with a list of things you plan to purchase. Its last minute shopping so go with a plan in place. You don’t have much time left to shop so make it easier on yourself by identifying what you are looking to purchase. If do not have a list you will usually end up breaking your budget or spend hours looking for that perfect gift.

Purchase gift cards
If you are under a time constraint, purchasing a gift card is always a great last minute gift idea. With a gift card you can stay within your budget you set, because a gift card enables you to set the exact dollar amount you want on the card. A gift card also enables the person to purchase the gift they would like instead of you spending hours trying to decide what to purchase. Gift cards are also easy to find which makes the purchase even easier to make.

Create homemade gifts
Instead of going shopping for holiday gifts why not create homemade gifts. By creating homemade gifts, you are not going to the mall at the last minute. You should be able to stay within your budget. You are not stressing looking for that perfect gift because everyone enjoys homemade cookies or desserts.

Its the thought not the price
During the holiday season, we always want to find that perfect gift. But we sometimes forget its the thought that counts not the price. So instead of stressing yourself out or breaking your budget to purchase what you thought was the perfect just buy a little simple gift. They will always remember that you thought of them not what you bought them.

TAKE ACTION
You only have few days left so if you have not completed your holiday shopping or have not begun your holiday shopping follow these simple tips to make the last few days less stressful and more enjoyable.

Enjoy your Holiday Season.

Take one step at a time to simplify your personal finances.

I have to admit I am an iPhone junkie. I enjoying finding new apps to try out. There are many financial and money management apps that can help you simplify your personal finances. This week I wanted to suggest some of the best financial apps available. If you are an iPhone or iPad user, try them out and see which ones can help you simplify your finances. Better yet many of these apps are free or at least have a free version for you to try out.

Check them out and let me know which apps have helped you simplify your finances:

Personal Dividends offers the 10 Best iPhone Money Management Apps
to help you simplify and better manage your personal finances.

Looking to save money Financial Highway offers you 75 Phone Apps + 10 Tips that Will Save You Money.

PT Money offers Apps and Mobile Banking at Online Banks to help you simplify your banking on the go.

Money Girl suggest The Best Apps for Personal Finances.

Green Panda offers 12 iPad Finance Related Applications You Need.

If you are an iPad user and need help with budgeting Mint.com offers 7 iPad Apps That Help You Budget and Improve Your Lifestyle

If you do not have an iPhone or iPad but instead have an Android ChristianPF offers are not a Apple user 20 Android Budgeting Programs & Personal Finance Apps to help with your personal finances.

Remember to take it one step at a time in order 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.

Is finding the time preventing you from simplifying your personal finances?  Simplifying your personal finances will enable you to  spend more time doing the things you enjoy.  If currently do not manage your time now, you may have a difficult time simplifying your personal finances.  So in order to simplify, you have to mange your time more efficient.  You can do this by setting up automatic deposits,  automatic debits and automating your bills are some of the ways you can manage your time more efficiently.

Here are five keys to help you find the time to simplify your personal finances:

Have a vision of your personal financial picture

Take action and stop procrastinating

Always plan ahead

Prioritize your goals and objectives

Plan for the unexpected

Action step

Take a few minutes to decide what you time save actions you implement to help you manage you financial time more efficiently.

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.

As many of you know or maybe don’t know, I am a huge football fan. I can not wait for the NFL season to start. It kickoffs with my defending Super Bowl Champion New Orleans Saints taking on the Minnesota Vikings. WHO DAT Its not going to be an easy task for the Saints to repeat as Super Bowl Champs. The team has to focus on one game at a time in order to repeat as Champions and TWO DAT. Its the same with your personal finances. If you want to simplify you have to tackle each financial task one tackle at a time. Don’t try to financially multitask and take on more than you can handle. Its much easier to tackle each task one at a time. Here is a quick list of financial task you should tackle to simplify your finances:

BANKING

• Consolidate your bank accounts
• Sign up for online banking
• Set up account alerts

DEBT

• Consolidate your credit cards
• Eliminate credit card balances or put plan in place to eliminate it
• Refinance your mortgage or renegotiate your credit card interest rate

INSURANCE

• Evaluate your all of your insurance coverage
• Determine if you have enough coverage
• Are you paying to much for your coverage

RETIREMENT

• Consolidate your retirement accounts
• Are you on track to reach your retirement goal?
• Have you reallocated your retirement accounts?

EMERGENCY FUND

• Have you established an emergency fund?
• Do you know how much it should be funded with?
• Is it adequately funded?

ESTATE PLAN

• Do you have a will in place?
• Have you reviewed the beneficiaries, executor, and guardians you established?
• Is you family aware of your intentions in your will?

EDUCATION

• Do you have education saving plan in place?
• Have you set a goal for what how much you will need?
• Do you review you plan regularly?

TAKE ACTION

Determine which financial task would help you simplify your personal finances and tackle this one first.  Ask yourself the three basic questions provide.  Once you tackle the first one move on to the next.  After you tackle each one at a time your financial life will become simpler and you will begin to live a simple financial lifestyle you want to live.

Til next time remember to take it one tackle at a time.

This post was featured in Carnival of Personal Finance #274: I Love NY Edition.

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.

Do you experience any of these symptoms when thinking about your personal finances:

• Budget dizziness – when trying to create or even think about budgeting

• Debt fever – when reviewing your outstanding debt and wondering how you can eliminate it

• Sweaty emergency fund palms – when trying to determine how much is needed in your emergency fund.

• Late fee hair pulling – when you open your account statement and see that late fee charged to your account.

• Banking knots in your stomach – when trying to reconcile multiple account statements or trying to keep track of multiple banking relationships.

• Retirement savings rash -when trying to determine how much you will need to retire and when you will be able to retire.

If you experience any of these symptoms when you think about your finances, I am not a doctor but I believe you have what is called financial overwhelmedness.  Financial overwhelmedness is the inability to make a decision regarding your finances because you have so many questions and not sure what decision to make.  You are afraid to make a decision because you don’t want to make the wrong one so just don’t make a decision at all.

Since I am not a medical doctor I am not able to prescribe any medication to help cure this.   But here are some tips that will help you overcome your financial overwhelmness and hopefully helps you simplify your financial life.

FOCUS ON THE THINGS YOU CAN CONTROL in your financial life.  Do not spend time worrying about things that are out of your control its a waste of your time. Deal with the things you can control.  For example, you can control how much you spend and save each month. You can control how you allocation your retirement and non-retirement assets but you can not control the stock market or the price of gold.

TAKE ONE STEP AT A TIME As I always state at the end of my post take one step at a time to simplify your personal finances.  I truly believe this.  You must take one step at a time if not you will overwhelm yourself with the information and decisions.  So instead of trying to tackle multiple financial task at a time break them down into simple task or steps to make the process less overwhelming.

ASK FOR HELP If you feeling overwhelmed ask for someone to help you.  I am sure you can someone a friend or family member who has dealt with your situation that is overwhelming you.  If not there are many personal finance bloggers who can provide you with a solution.

TAKE ACTION do not just sit there and not do anything or say to yourself I don’t know where to begin.  Even if you are overwhelmed you will have to begin at some point so why not now.  Take action by take that one step at a time as was identified earlier.  You will only be able to cure yourself by take some action even if its one tiny step.  It’s much easier to tackle one situation at a time then to try to tackle them all at once.

What are some other ways that you have overcome financial overwhelmness?

Til next time take it one step at a time to simplify your 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.

Usually when you hear the word audit, we assume its a bad thing. But doing a financial audit can help you simplify your personal finances and may even help you save some money. I am a big proponent of simplifying your finance by automating them.   But as I wrote in Don’t Automate your Personal Finances and Forget About Them I believe you must review your accounts on a regular basis.  That’s why I propose you do a financial audit on your personal finances every so often. At a minimum every six month you should do an audit. The reason for the audit is to make sure all of the auto payments you set up are stilling being processes as you originally established and any automatic payments you discontinued or thought you discontinued have been stopped. Additionally you want to review those payments.

For example you know that gym membership you signed up for at the beginning of the year so you could lost a few pounds and get in shape. It was set up to debit your account on a monthly basis but guess what you have not step foot in the gym in over two months. Doing the audit you could catch this and cancel the membership to save some money each month. Also you know the monthly newspaper subscription you signed up for several months ago thinking you would have time to read the paper.  When was the last time you read the paper? So instead of having the monthly charge to your account you can stop it and save money. So you can see performing a financial audit is a good thing.  It will help you eliminate expenses you are no longer using as well as verify that your payments are being processed as established.

Here are the things you are looking for when completing a financial audit of your finances:

Monthly Recurring Bills or Expenses – This can be any monthly expense you have charged to your credit card or deducted from your bank account.  Review each monthly charge or debit and ask yourself am I still using this services or product. Can it be eliminated?

Monthly Service Fees – Check your account statements to see if you are charged monthly service fees or late charge. For example, are you charged monthly for banking fees. If so look to see what can be done to eliminate the charge.  Are you being charged monthly late fees? If you automate this there should not be any late fees. But you want to make sure the payments is deducted on the right date to avoid them. Due dates can change so make sure the payment is deducted on time and allow enough time for processing.  If its not it defeats the purpose of automating your finances.

TAKE ACTION by reviewing reviewing all of your  auto debits and automated charges to ensure they are set up properly as well as look to eliminate any auto debits for services you no longer are in need of.   If you are charged late fees or service review the reason for these fees and look for ways to eliminate them if possible.  This will help you save money.

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

This post was featured in Carnival of Personal Finance Elvis is Dead Edition.

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.

In order to simplify your personal finances having a budget in place is essential. A budget is like your road map to help you reach your destination that you desire. That destination can be to reduce debt, retirement saving, or any other financial goal you want. Budgeting is something that many of us do not like but need to if you want to begin living a simple financial lifestyle.

These recent post should help you budget:

WHAT IS YOUR EXCUSE FOR NOT BUDGETING?

Investopedia offers some reasons why you may not budget currently Debuking Budgeting Myths

WHAT IS THE PURPOSE OF A BUDGET?

Bargaineering explains Why You Need a Budget

WHERE DO I START?

One Money Design offers some help in starting your budget in Tips for starting a budget

Ace of Wealth offers some help with starting your budget in 5 Tips to Get Started on a Zero Based Budget

I DON’T LIKE BUDGETS

If you do not to call them budget because it seems to restrictive. Money Funk offers some tips on designing a Spending Plan.

NOW I KNOW WHY AND WHERE TO START BUT STILL NOT SURE

Personal Dividends explains How to Budget

Moolanomy explains how to budget in Budget Once, Spend (or Save) Twice

IT TAKES TWO TO BUDGET

Wealth Pilgrim offers some suggestions with this in How To Convince Your Spouse You Need A Budget

Now after reading these articles you know what is necessary create your budget or spending plan its now time to TAKE ACTION.

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.

For those of us who live along the Atlantic and Gulf Coast we are now almost a month into hurricane season have you prepared yourself? You still have time to prepare.  In my post, Simple Financial Tips – Disaster Plan I discuss ways to help you prepare for a disaster to help simplify your finances. 

Here are some additional tips help you prepare and simplify your finances in case of a hurricane.

1. Review your homeowner’s insurance policy – Make sure you are properly covered and amount of coverage.
2. Review your flood policy – Understand what is covered
3. Review your wind policy – Understand your deductibles
4. Know who to contact if you incur damages.
5. Take inventory of your personal property
6. Have a plan in place if you need to evacuate.  Know where your going ahead of time.  Less stress if you have a plan in place.
7. Create file of all important documents to take with you.
8. Is your emergency fund properly funded to cover your insurance deductible

These 8 steps will help you simplify your hurricane preparedness. Remember take one step at a time to 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.