Simple finances

One of the ways we have simplified in our home is in the area of finances. By adopting a simplistic, conservative, not fancy, approach to money, it has allowed for less headaches and easier accounting.

Here are my tips for creating a simple financial system:

tip 1  Use just one checking account that is joint, if you are married. This way the left hand knows what the right hand is doing.

tip 2  Eliminate credit cards. Not only was this the best decision we ever made for our marriage (besides  cutting the cable - but that's a different post) but it ensures that we pay cash for everything using a debit card or literally cash, it's that paper stuff that nobody uses anymore. It makes record keeping pretty easy because we can glance at our checkbook to remember whether we spent the money whereas with the credit card it's easy to rack up debt (literally) because most people don't keep a log of their purchases.

tip 3  Make a zero-based budget. And then use it.

By just implementing these three things, our finances have become so much easier to manage and we experience true freedom in our lives by not being burdened by consumer debt and accounting mistakes.

What are your tips for simplifying household finances?