Reducing Financial Clutter

Here, you will find the top 5 ways to reduce your financial clutter:

Pick One Bank

Many Canadian’s have several bank accounts. They will use one for their main bank account, another for their RESPs and savings. The truth is, this can really cause a lot of financial clutter. Some people even have multiple checking accounts. Some of them may even charge a monthly service fee. If you want to keep it simple, then you will want to pick a single bank and have only the necessary accounts.

Make a Checklist

You can create a spreadsheet document to help you keep track of your month end balances. This will help to keep everything in one place so you don’t have to look back at all of your statements. You may have checking accounts, wills, insurance accounts, TFSAs, RRSPs, RESPs and investment accounts. IF you don’t have a checklist that helps you keep up with everything, it can become really cluttered.

Use a Single Credit or Debit Card

Having a spare credit card around for emergency use only can be a good idea. Some people choose to have more than one credit or debit card that they use regularly. This can end up in confusion. Have one card for emergencies, and one that you use regularly. That will ensure that you have one handy in case of a lost or stolen card, but will help to prevent financial clutter if you don’t use them both often.

Sign Up for Automatic Payments

When you pay your bills every month, it is a good idea to have them signed up for automatic draft. You can also automate your deposits. This will prevent you from having to stand in line at the bank to cash or deposit your paychecks. You can just go online and check to make sure your deposits and withdrawals have gone through. Automation can also help to prevent late bill payments.

Get Rid of Old Tax Documents

In Canada, it is a good idea to keep up with your tax documents for six years. After this time, it is a good idea to get rid of them. The best way to do this is by shredding them. Also, shred up old checkbooks, warranty sheets, manuals, and bank statements. The good thing is that most banks offer online statement options, so you can even go paperless to help you reduce your financial clutter.