Simple finances

To survive in today's society we need to be able to utilize our money. Now although it seems like there is never enough, there are ways to make the whole song and dance much easier and still FREE!  (Because I'm minimal AND cheap!)

When I was young everything revolved around the bank. This magical place of business that acts like a giant piggy bank. It didn't make much sense to me back then to give them my money when I could just hide it in my room. It was simple. It was easy. 

Now-a-days we all have debit cards, credit cards, lines of credit, TFSAs, RRSPs, and more. Each of these is an institution with different online passwords and logins, statements and due dates. There is quite a bit to keep track of and many times it becomes overwhelming... But I think I have developed a system to help this. 

1) get a "Mint" account and put the app on your phone. This app ties all of your accounts into a one-stop-shop for simple viewing, budgeting, and spending overview. LIFESAVER!

2) Sign up with a bank you trust with a fee structure you are comfortable with. I use ING since they are always free, give me more than 4 accounts and are completely online (this means great Internet and phone service).  Many people are scared to go to an online bank, but I do all my banking from home anyway!! And they do have a number of ATM's all over the city. 

3) Auto transfer everything!!  When I get paid, my rent, vehicle funds, savings, debt, etc all get auto transferred out of my chequing account and into my various other accounts. They act as "folders where I stash my funds based on what want (vehicle, rainy day, TFSA, house, etc). If it is automatic, there is no effort required. 

4) stop using your debit and credit card and switch to CASH!  At the start of the month I go to an ATM and pull out my monthly budget for groceries and entertainment and put them into two separate envelopes. This does two things:

- helps you stick to our budget. Once the money is gone, it's gone!

- makes you plan. If I don't have my grocery money envelope with me, I don't shop. (This also ensures I come with a list!)  if your friends want you to go out AGAIN for dinner and drinks, you can easily say you have no money and they should let you know ahead of time. Keeps those spontaneous money wounds to a minimum. 

5) pay your bills online. We all have big purchases, utilities and taxes. All of which can be paid with the click of a mouse. With password programs like "lastpass" you don't even have to remember your login information. 

This is a simple automatic system. Once you write down your budget, collect your accounts within your programs, and setup your auto transfers based on your cash flow needs, you just drop into a cash machine once a month and pull out the same amount. Simple, mindless, and minimal. All accessible on your phone. Just my style :). 

How do you simplify your financial life?