How to Simplify Your Finances in One Weekend: A Step-by-Step Guide
News fromCourierPR · 3 min read
Getting your finances in order can feel like a daunting task, but a new guide from OneMain Financial offers a straightforward approach to simplify your financial life over the course of a single weekend. The guide provides a clear, manageable plan that can help you set important financial goals and get on the path to achieving them.
On Saturday morning, the first step is to gather all your financial information in one place. This includes listing all sources of income, expenses, debts, and savings and retirement accounts. OneMain Financial recommends pulling information from at least the past three months, and ideally from the past year, to capture any recurring one-off expenses or sources of income.
Next, categorize your spending into three groups: needs, wants, and savings. Needs include essential expenses such as housing, transportation, groceries, utilities, debt repayments, medication, and childcare. Wants encompass non-essential expenses like streaming subscriptions, shopping, dining out, and concerts. Savings should include contributions to savings, investment, and retirement accounts.
For those who prefer a more structured approach, OneMain Financial suggests using a personal finance app, spreadsheet, or piece of paper to organize this information. The key is to find a method that works best for you.
Saturday afternoon is dedicated to reviewing your financial information honestly. Ask yourself if you have enough income to cover all your expenses, if you are spending more on any one category than you realized, and which expenses felt useful and which did not. This self-assessment can help you identify areas where you can cut back on spending. For example, packing a home lunch for four days a week can reduce restaurant spending, and rotating streaming subscriptions can save money compared to paying for each one all year long. If debt repayments are eating too much into your budget, researching debt consolidation loans might be a viable option to lower your monthly payment.
The goal is not to completely cut out the occasional treat, as this may feel restrictive and could increase the chance of impulsive spending. The focus is on making realistic adjustments to your spending habits.
Sunday morning is when you build a budget. OneMain Financial recommends the 50/30/20 method, where you allocate 50% of your spending to needs, 30% to wants, and 20% to savings. You can always adjust the percentages according to what works best for you. Remember to build in a buffer for unexpected expenses, such as emergencies or recurring yearly expenses like holiday spending or summer camp. Divide your predictable yearly expenses by 12 and add that figure to your monthly savings goal, plus extra for emergencies.
Sunday afternoon is dedicated to planning for upcoming expenses. To avoid missing payments, set up autopay for fixed expenses such as rent, mortgage, utilities, and insurance. For variable bills like water or electricity, create a recurring calendar reminder for the day your bill is generated and the day it's due. This will give you time to review how much you owe and ensure you have enough money to pay it. Set calendar reminders to review your accounts and upcoming bills every week to stay on track.
Sunday evening marks the end of the financial makeover weekend. You'll have a clearer view of your financial health, and the next step is to maintain the momentum. Schedule regular weekly or monthly check-ins to review your accounts, confirm bills have been paid, and ensure you're staying on top of your savings plan.
By following these steps, you can take significant strides toward simplifying your finances and achieving financial stability. OneMain Financial's guide offers a practical and achievable approach to managing your money over the weekend, setting you up for a more secure financial future.