Insurance

So many people that I talk to want to get a good handle on their family’s finances, but they are so intimidated by their finances that they don’t know where to start. How can they stay on top of all of their financial assets, their goals, and their debts at the same time? The overwhelming stress over personal finance can cause people to avoid even beginning to work through their concerns. The trick to managing everything is to simplify wherever you can. If you’re hoping to wrangle your finances into a more manageable form, I’ve listed below five tips for simplifying your finances.

The stress can make sense. Finances become pretty complicated over the years. You might have a 401(k) with your employer, a checking account, a savings account, an IRA (rolled from an old 401(k) with a different employer) and a couple of credit cards. Then, you get married and find that your husband has his own version of the same things. Therefore, the whole situation adds up to a lot of accounts to manage.

Consolidate your finances

There are some accounts you can’t control. The brokerage company that holds your 401(k) is chosen by your employer, and you have no input in the matter. Many other things, however, are completely in your control. Merge multiple checking accounts into one, main household account. Use one credit/debit card for all of your purchases. As a result, the fewer different accounts you have out there, the less time you will spend reconciling statements each month.

Use financial tools to track your accounts

No one wants to have to pull a bunch of different statements together to get an idea of their financial position. Fortunately, you don’t have to do that. There are multiple ways to tie all of those accounts to one tool, and some of them are free! While our family uses Quicken, one of my friends prefers to use Mint.com. The site has a cool budget tool, too.

Make automatic savings contributions

Of course you don’t need the hassle of writing a check each month to your savings account. By simply enrolling in automatic deposit you won’t have to worry about making those extra trips to the bank. Instead, your money will automatically move to your savings account on the day that you instruct it to move. No fuss; no muss!

Utilize your bank’s electronic bill payment tool

Forget the days of writing a check and mailing it to your creditors. Manual check writing is inconvenient, and the checks take too long to process. Today you can pay your bills with a click of a button or two. You can also enter payments ahead of time, and specify the date that you want them to be paid. Automating tasks is an easy step in simplifying your finances.

Go green!

Finally, did you know that simplifying your finances could be good for the environment? It can be if you turn off the paper statements for your accounts. Instead, access them online. This way, you can print or save any statements you need from the appropriate website.

What ways do you simplify your finances?

It is easy to file bills away without paying any attention to all those pages of charges. However, taking just a few minutes to check on what is in your bills can save you a significant amount of money in the long run. Here are five common billing mistakes that you should scan your bills for each month:

Hospital Billing Errors
If you have had a recent hospital stay, make sure and check your bill carefully to see that you have not been overcharged. Patients often find that they have been charged for extra days at the hospital, for pills or treatments they never received, or for doctors that never actually treated them. Call your hospital’s billing department if you find any discrepancies.

Medical Insurance Bill Errors
Insurance companies sometimes get misinformation from doctors or hospitals, or they sometimes may try not to pay for something that should fall under your policy. These medical billing errors are common. Make sure that your insurance pays for everything that it should. Know your policy well and keep track of how much deductible you have used.

Phone Bill Errors
If you have a landline or a cell phone it can be easy for the phone company to make a mistake. Many phone companies are nationally run and use large software contractors to manage their billing. All it takes is one wrong keystroke to overbill a phone customer. If you see a charge on your bill you think is incorrect, give your phone company’s billing department a call.

Cable Bill Errors
Cable billing errors can be similar to telephone billing errors, and may even be the same company depending on what type of communications package you have. Make sure you check your cable bill to ensure you are not being charged for any pay-per-view purchases you did not make, or for a cable box that you no longer have in your home. Call your cable company if you find any discrepancies.

Credit/Debit Card Bill Errors
Always check your credit/debit card statement at the end of every billing cycle to see if all of the charges match up. Since we swipe our cards on an almost daily basis, it is easy for a clerk to type in the wrong number on the keypad when charging your card. If you find anything that appears to be incorrect, call the merchant.

Credit and debit cards are also subject to fraud. If you see any charges that you did not make, call your credit card company or bank immediately and let them know. Your credit card company or bank can work with you to reverse any fraudulent charges (although sometimes you might get stuck with them) and help you prevent any further fraud.

For any bills you receive, keep an eye on the charges, and make sure to pay attention to the breakdowns on those back pages of the bill. You might find a mistake that can save you some serious cash!