Three Ways to Help Simplify Your Finances

Over time, finances tend to get complicated, especially when you’re juggling multiple goals and accounts. Simplifying your finances requires a bit of effort up front, but making just a few changes may help free up more time to focus on your financial priorities.



Make Saving Automatic

Saving for a goal is simpler when money is set aside automatically. For example, you may be able to regularly and automatically deposit a portion of your paycheck into a retirement account through your employer. Your contribution level may also increase automatically each year, if your plan offers this feature. Employers may also allow you to split your direct deposit into multiple accounts, enabling you to build up a college fund or an emergency fund, or direct money to an investment account.

Another way to make saving for multiple goals easier is to set up recurring transfers between your savings, checking, or other financial accounts. You decide on the frequency and timing of those transfers, and you can quickly make necessary adjustments.

Consolidate Retirement Funds

If you’ve had a few jobs, you might have several retirement accounts, such as IRAs and 401(k) or 403(b) plans, with current and past employers. Consolidating them in one place may help make it easier to monitor and manage your retirement savings and distributions, and prevent you (or your beneficiaries) from forgetting about older or lower-balance accounts. Not all accounts can be combined, and there may be tax consequences, so discuss your options with your financial and/or tax professionals.

Take a Credit-Card Inventory

Credit cards are convenient, but managing multiple credit-card accounts can be time-consuming and costly. Losing track of balances and due dates may lead to increased interest charges or late payments. You could also miss out on some of the rewards and benefits your cards offer. If you’ve accumulated a few credit cards, review interest rates, terms, credit limits, and benefits that may have changed since you got the cards. Ordering a copy of your credit report can help you quickly see all of your open credit-card accounts — there may be some you’ve forgotten about. Visit annualcreditreport.com to get a free credit report from each of the three major credit reporting agencies (Experian, Equifax, and TransUnion).

Once you know what you have, you can decide which cards to use and put the rest aside. Because it’s possible that your credit score might take a temporary hit, it may not always be a good idea to close accounts you’re not using unless you have a compelling reason, such as a high annual fee or exposure to fraud.

Your goal may be to fund college education, protect your family during your working years, or guarantee your own retirement security. These things don’t happen by accident. It’s important to determine what you’d like to achieve, and then map out a financial strategy that will help you meet those goals. The good news is that it’s NEVER too late to start! Of course, planning your own financial future can be intimidating. Luckily, you don't have to do it alone. As a New York Life insurance agent, I am a trained Financial Services Professional who can help you identify your financial needs and then determine which insurance and financial products can best help you meet your objectives. Please use my Web site as a resource and contact me for additional information or to schedule a meeting. I look forward to helping you achieve your dreams! Of course, preparinf for your own financial future can be intimidating. Luckily, you don't have to do it alone. As a New York Life insurance agent, I am a trained financial professional who can help you identify your financial needs and then determine which insurance and financial products can best help you meet your objectives. Please use my Web site as a resource and contact me for additional information or to schedule a meeting. I look forward to helping you achieve your dreams!