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?

 

Comments

  1. B Simple says

    Patrick and Matt, thanks for the comments. Having only one makes your financial life so much easier. All of us have enough to manage on a daily basis. So having only one of each will simplify your life and finances so you can have more time doing the things you enjoy.

  2. B Simple says

    Patrick,

    You are correct there are some investment and retirement accounts you will not be able to consolidate. But if you do have two 401ks one from current employer and one from former employer you can possible consolidate the old into your new one.

  3. says

    Financial simplicity is key. We stick to one institution for most of these categories too.

    My only caveat is credit cards — I travel heavily for my job, and always have one (or if traveling internationally, 2) “backup” card in my wallet. This is in case my primary card is lost/stolen/defrauded while traveling. But I still generally only use one card — and pay it off every couple weeks.

  4. B Simple says

    It will depend on what type of investments you have and the type of account they are held in. What type of fees are you to save with consolidation?

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