Introduction

Entropy – a scientific term used to describe the ever-growing disorder in the universe. This manifests not only in space, but in the structures and systems of the world. People’s homes are full of stuff, their minds are filled with instant access to news and media, and their finances are filled with never-ending credit card payments and messiness. Minimalism is a growing idea in our culture, because the world is tired of unorganized and complex living. As humans, we desire structure and order to our days, calling us to delve into our financial life and bring some calm to the chaos.

1. Consolidate Bank Accounts and Retirement Accounts

First, having multiple different accounts to manage can be overwhelming and only creates extra stress when checking accounts. It is recommended to have one account for spending purposes and one savings account. It is also recommended to rollover any previous job 401ks to a self-employed retirement account. When consolidating your retirement accounts, make sure to double check for any tax implications.

2. Get Rid of Paperwork That Isn’t Necessary

Take some time to sort through your filing cabinet and purge paperwork that is not necessary. It is especially therapeutic to categorize and label each section of your files to relieve additional stress. It can be helpful to only keep what you need a hard copy of in a file. For extra measures you can also create a folder on your computer and store documents electronically.

3. Choose One Credit Card

Credit cards can also build up quickly, because that is the goal of the businesses marketing them to you. It can simplify your wallet and budgeting if you focus on using just one credit card. Choose the card that will serve you the most and forget about the rest.

4. Review Your Subscriptions

It is important to review your subscriptions now and again and consider the ones you are not using. This simplifies your life and creates one less bill you must worry about. If you are a budgeter, it will make tracking your expenses so much easier if you can simplify how many you have.

5.  Automate

Technology is always working to create a more efficient way to do things.  For monthly bills, like insurance, rent, and utilities, check into setting up auto-pay that will automatically charge your account on the day that it is due. This simplifies your finances and clears space in your mind, because you know your bills are taken care of. You can also automate a certain amount of money to transfer into your savings account, completely customizable to your preferences. There is even budgeting software that you can invest in to link your bank accounts and budget for you, just to make your life a little simpler.

Conclusion

Simplification brings quiet to a loud mind and peace to your financial life. I hope these recommendations can add value to how you manage your assets and create more intentionality in calming the chaos around us.

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