How to Simplify Your Financial Life

Having your money and policies in too many different places can lead to headaches. Here's how to consolidate and simplify your finances.

Things You'll Need

• The willingness to make some changes

Instructions

1. A good place to start is with your insurance. Shopping for the lowest rates can save you money, but moving all your policies to a single carrier can net you a multiline discount. Having one agent to work with can also be helpful. He or she should be able to periodically monitor your policies and alert you when you need to change or modify your coverage, such as when you marry or divorce.

2. Don't go crazy trying to pick the best fund choices within your company retirement plan. Most plans have professionals that can help you do this, anyway. Ask for help if you need it; that's what they're there for. It's also a good idea to take advantage of automatic increased savings plans that raise the percentage of money you put into the plan every time you get a raise or promotion. Don't try and rebalance your portfolio too often, either. Many plans offer automatic rebalancing features that do the work for you.

3. When it comes to medical bills, you can now upload your records and statements to online services that record these documents in electronic "safes." This allows any medical professional to access your past records online in the event of an emergency. Also, don't hesitate to enlist a healthcare advocate to negotiate for you in a billing dispute. There are several search engines online that can help you find one such as dogpile or billadvocates.com (see Resources below).

4. When it comes to plastic, use a single cash back card for the majority (or all) of your spending. Use other cards for things like monthly memberships or bills if you like, but the more concentrated you are, the more points and rewards you can earn from that card. Also remember that it's probably easier to negotiate a lower rate with your current lender than it is to move your balance to a new card.

5. Find a bank with no-fee, no-hassle checking accounts. The national banks usually have fees for virtually everything, even to give out a deposit slip. Regional and local banks and credit unions usually charge lower and fewer fees and are much more open to negotiation than the big boys. There are also many brokerage accounts that offer a number of banking services such as money market checking accounts, debit and credit cards and the like. Ask your brokerage firm what it has to offer in this area.

6. Make use of one of the many financial programs available such as Microsoft Money or Quicken, which can help you to consolidate all of your finances, banking, brokerage, insurance, debt and even taxes online in a single window. Most of these programs can even provide you with your daily net worth at a glance.

Resources

• dogpile
• Medical Billing Advocates of America