Two Quick Steps to a Better Handle on Your Finances
October 7, 2013
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There are many things you can do to save money each day… making your own cup of coffee instead of grabbing a latte on your way to work; eating in instead of dining out; clipping coupons; and more, but here are a couple other ways you can get a better handle on your finances.
1. Consolidate your accounts.
Getting a better handle on your finances could be as simple as getting everything in one place. As we create and open various types of accounts throughout the years, they tend to be spread across different financial companies. Having your accounts (savings, checking, investment, retirement, and credit card accounts) in the same institutions can make it easier to see an accurate picture of your finances. In addition, it makes transferring money between accounts easier, monitoring your accounts simpler with fewer logins, and reduces the number of statements you receive.
To start, move as many accounts to the same institution as possible. Move all of your banking and credit accounts to the same bank and roll over any old 401ks into your current 401K or an IRA so your retirement is consolidated. Also talk with your bank, they may have added perks for you moving additional accounts to them.
Another way to improve your finances is to reevaluate your insurance policies. Having the wrong insurance can be an issue on both sides of the coin:
- If you are under-insured, it can leave you unprotected in the event of an accident or emergency situation.
- If you are over-insured (or paying too much for the type of insurance you need), it results in you throwing money away each month.
To start your review, educate yourself about your insurance needs. Talk to a professional for a better understanding of how different policies work and identify the right amount of coverage for you. Decide on the policies you’re keeping and get quotes from a couple companies to see if you can save money by switching providers or bundling insurance policies with one insurance company.