Spending time budgeting can be time consuming. Time can be spent reviewing bills, projecting out cash flows, and slogging through spreadsheets full irregular expenses. Budgeting is important, but what also is important is time. Consolidating finances helps streamline how much time you have to spend on reviewing finances and allows you to take more control of your life. So with that said here are 3 tips to help you consolidate your finances.
1. Use a password Manager
A password Manager is great because you can consolidate all those passwords into a folder that has all the logins with financial sites that you use. Also note that password mangers also have additional features such as 2 Factor Authentication which help verify identity of the person trying to access the password manager. It can also generate random passwords which allow for safer creation of passwords. On top of that it can sync data between your computer and your phone. Password apps that we recommend are 1password or last pass.
2. Use a Financial Dashboard
A financial dashboard allows you to gather all your finances in one location. The first tool to recommend for this is Personal Capital. This site is free and allows you to see all your accounts in one easy place without having to jump through multiple sites to see and track the balances. A big feature of Personal Capital is it’s budgeting feature. You can’t create a budget in Personal Capital, but you can use the free version to track your cash flow and spending patterns. Spending categories can be analyzed along with individual transactions. You’ll also get monthly summaries, helping you to know exactly where your money is going. With Personal Capital you can see your account balances in one place.
3. Stay focused on a few financial goals
To clarify one may have a lot of financial goals lined up, but it is better to take a few of those goals and hone in those in order to make progress. Goal hopping or “Moving the goalpost.” can make staying on track with finances difficult as your unable to hit the target. Consider this, you may want to pay off your student loan debt, and prioritize travel for you. You could automate money towards your monthly loan payments. Then, you could put extra cash flow toward a savings account for travel. With that said, stay focused don’t allow yourself to be distracted or “Move the goalpost.” Dedicate your financial decisions to making these goals happen so you get to the next level.
So with that said those are 3 tips for simplifying your finances. To summarize, use a tool like a password manager to consolidate all your passwords for your financial accounts in one place to review accounts quickly. Tools like Personal Capital help you manage finances on broad level by showing all your accounts in one convenient place so you don’t have to jump through several accounts. Lastly, stay focused on a few goals so can prioritize keeping your finances on track. Once you do these tips your able to take more control over your finances and your life.