Money & Minimalism – Tips to Simplify your Financial Life

BY ANDREA BEREZNAK

In our fast-paced modern society, I often hear new people bemoan the complexity of their lives. Do you know anyone who DOESN’T feel overwhelmed regularly? It’s no wonder that minimalism and simple living have become such popular topics. Images of clean white spaces, neatly folded dresser drawers, and people sitting calmly with a cup of tea seem like an unreachable dream.

Reducing financial clutter clears space in our minds, reduces stress, and allows you to focus more time on what brings you joy.

Here are some tips to bring minimalism and simplicity to your financial life

Set Clear, Specific Goals

“If you don’t know where you’re going, any road will get you there” – Lewis Carroll

When you have a clear, written down goal, it hones your focus. Without direction we are liable to be pulled in any old direction. That leads to confusion, complication, and the sense that though we are always busy, we aren’t sure we’re actually making the financial progress we desire.

Take 15 minutes to sit down and go through this exercise to establish your financial focus

What is a goal you want to achieve that requires both time and money? (retirement, pay off debt, buy a home, pay for your son’s college, etc…)
- Make it specific!
- For Example: “I want to retire on my 65th birthday and know I have $4,000 per month of income to rely on for the rest of my life” OR “I will pay off $40,000 of credit card and student debt by December 31st, 2025.”
Repeat with 1-2 other goals. Do not set more than 3 goals at a time, or you will feel spread too thin.
Visualize how you will feel on the day you meet your goal. Write down a few key words that come to mind. These can keep you motivated along your journey.

Automate

Why do we all spend more too much on Amazon purchases? Because they make it so EASY! To clear your mind and simplify your life, make it that easy to accomplish your financial goals.

This does require some work upfront, but once your system is established, you can set and forget, knowing by simply letting it work you are making progress every day toward your goals!

Calculate how much you need to contribute each month in order to achieve your goal by your target date.
Determine and, if needed, set up the account you will contribute to.
- This may be a bank savings account if your goal is short-term, a credit card or other debt account, or an investment account for longer-term goals.
Establish an automatic payment or transfer from the bank account you receive your income into, to the goal account.
DONE! Sit back and let the power of automation keep you on track.

Tip* You can do this for regular expenses and bills as well. Set up paperless billing and auto-pay to eliminate the mental clutter required to find that paper bill and remember to pay it on time again and again.

Work with a Professional

I get it, if it were so easy, everyone would have mastered simplifying their finances and achieving their financial goals, right? This is where working with a professional financial planner and investment advisor can help. Think of your financial professional as your personal trainer for your finances.

With our expertise in financial planning and investment solutions, we are here to help you identify and clarify your goals, calculate the necessary savings needed to meet those goals, and structure your accounts appropriately.

Ah, sounds good right?

Let us know how you have simplified your financial life, and what goals you are working on. If you have questions or doubts, we can help. Call us at (480) 507-2425 or contact us online. We’d love to meet you.

The content in this article was prepared by the article’s author. Cetera Advisor Networks, LLC does not endorse its content, and the views expressed may not necessarily reflect those held by Cetera Advisor Networks, LLC.