Minimalist Money Habits
Are you looking to simplify your financial life? Here are seven minimalist money habits that can help:
1) Make a budget.
Creating a budget is a simple but effective way to take control of your finances. Determine your income and fixed expenses, and allocate any remaining money towards your financial goals. *Pro Tip: YNAB is an excellent budgeting tool that, with a little setup effort up front, can yield awesome results!
2) Automate your savings.
Set up automatic transfers to your savings account so you can save without even thinking about it. This can help you build an emergency fund and save for the future. *Pro Tip: This is a great way to achieve guilt free spending. If you automate your savings, investments, and bills when you get paid, you can spend the rest however you want knowing you’re accomplishing your goals!
3) Cut out unnecessary expenses.
Take a look at your spending and identify any unnecessary expenses. Can you cancel any subscriptions or memberships you don't use? Are there any recurring charges you can eliminate? Cutting unnecessary expenses can free up more money for saving or investing. *Pro Tip: An app like Rocket Money can do this for you!
4) Pay off debt.
Paying off debt can be a weight off your shoulders and simplify your finances. Focus on paying off high-interest debt first, such as credit card debt.
5) Simplify your investments.
Instead of trying to juggle multiple investment accounts unnecessarily, consider consolidating your investments into one firm or account when possible. This can make it easier to track your progress and make informed decisions about your portfolio. *Pro Tip: You don’t necessarily need a dozen or more mutual funds or ETFs to create a properly diversified portfolio. Many times 3-5 funds can get you everything you need at a very low cost!
6) Keep your financial records organized.
Keeping your financial records organized can save you time and stress. Consider using a tool like Mint or Personal Capital to track your expenses, investments, and even your net worth in one place.
7) Seek out professional advice.
If you're feeling overwhelmed by your finances, don't be afraid to seek professional advice. A financial advisor can help you create a plan to simplify your finances to more efficiently reach your financial goals.
By doing these simple things with your finances, you can get a handle on managing your money and eliminating financial stress.
If you have questions on any of these topics, or would like to talk about how you are invested, schedule a time to chat with us at Redeem Wealth. We’d love to make sure you are set up for success as an investor, and taking the steps that matter most in reaching your goals.
