April is Stress Awareness Month, an appropriate time to work towards a simpler, less stressful life. One important area to streamline is the way you handle your finances. Impractical financial goals, investment worries, and disorganization can have a negative effect on your wellbeing, lowering the effectiveness of any financial plan you may attempt to follow.
Consider simplifying your financial life by:
- Automating whenever possible. Automate payments to avoid late fees and pay down debt systematically. Automate savings by scheduling transfers to appropriate accounts the day after your paycheck is deposited. Sign up for automatic annual retirement account contribution increases.
- Consolidating accounts. You may have more than one 401(k) with former employers, along with various IRA accounts held at different brokerages. Consolidate to get the most out of your investments and avoid paying overlapping fees.
- Reducing paperwork. Get statements and notifications online. Popular Direct has an array of digital services to help you avoid paper.
- Having realistic goals. Do you feel guilty when you fall short of a savings or debt-paying goal? Do you expend a lot of effort for little gain? Goals that are inflexible or overly ambitious not only cause stress, but lower your chances of success. If your financial goals are making you crazy, it’s time to reassess and adjust.
These straightforward changes can go a long way towards making your financial life more manageable. Put them into place—along with stress-relieving techniques such as meditation, yoga, or jogging—and reap the benefits of a more relaxed life.
The information mentioned in this article is for informational purposes only, is intended to provide general guidance and does not constitute legal or tax advice. Each person’s situation is unique and may materially differ from the information provided herein. You should seek the advice of a financial professional, tax consultant and/or legal counsel to address your specific needs before any financial or other commitments regarding the issues related to your situation are made. Banco Popular North America does not make any representations or warranties as to the content contained herein and disclaims any and all liability resulting from any use of or reliance on such content.