9 Ways to Simplify Your Finances Now

If managing personal financial affairs were easy, we probably wouldn’t graduate nearly 70,000 accountants each year. Budgets, credit cards, insurance, retirement savings and more—it’s a lot to track, and things are getting more complex all the time.

A lot of people are losing the battle. One in three adults who say their finances have taken a turn for the worse also say their finances have grown more complex, according to a survey from Aite Group and Chase Blueprint. Likewise, 43% of those who say their finances have improved also say their finances have grown less complex.

Simple is good. It’s understandable. It’s manageable. It doesn’t eat up a lot of time. It breeds confidence and makes tough decisions easier. “The financial frenzy people experience comes from being disconnected from their personal income,” says Melody Juge, managing director at Life Income Management.

Some things can’t be made simple. Income tax filing comes to mind, at least for some people. So do retirement account distributions. You can’t know how long you’ll live. But other things don’t have to be so difficult. Maybe you can get control of your money with a few simple tricks. Here are nine ways most Americans can simplify their personal finances:

• Get down to one mutual fund You’ll get great asset allocation and solid diversification within asset groups with just one target-date mutual fund. These are the fastest growing corner of the retirement savings world precisely because they are so darned simple. Choose a target-date fund for the year you turn 65 or 70, put all your retirement savings in it and go about the rest of your life knowing you have professional management and an asset allocation that will become more conservative as you age. Of course, there are drawbacks and you’ll have to look out for expenses when you choose. But investing for the long haul has never been simpler.
• Keep two credit cards Dump the rest. You will save a bundle in annual fees and rid yourself of umpteen bills and solicitations. Use one card for monthly spending and the other only when you must carry a balance. Keep cards with the lowest interest rates or annual fees, or those that offer useful rewards.
• Pay bills online Most banks offer an online bill-pay service for no charge. Stamps, envelopes and physical checks are an obsolete expense. You’ll save time too. But best of all, your bank will automatically keep track of what you spend and where you spend it for easy review, which makes budgeting a lot simpler.
• Choose one financial institution Large financial firms offer the same basic range of services and accounts. You can probably get everything you need in one place. Stick with one. You’ll not only get better service as a bigger customer but cut down on monthly statements and get a better picture of your overall finances.
• Automate everything Arrange for direct deposit of your paycheck to eliminate trips to the bank. Arrange for regular payroll or bank account debits to your retirement account—and for automatic increases in the amount as you get pay raises—to keep savings on track. Arrange automatic monthly payments via your online bill pay system to creditors to cover the minimum due and avoid late fees.
• Get overdraft protection Link your checking account to your savings account to avoid the cost and hassle of overdrawing your account.
• Create an emergency fund The goal is to set aside six months of living expenses to guard against unexpected expenses that derail your plans. But don’t let what may seem a large sum deter you. Start with $500, which is enough to cover the cost of most minor household emergencies. Add $100 a month until you reach your goal.
• Pay yourself first You should be saving at least 10% of what you make every month. Write that check first and budget to live off of what’s left.
• Get organized through new technologies Account aggregation through your bank or a service like Mint.com will allow you to view all your accounts in one place, says Linda Sherry, national priorities director at Consumer Action. She also recommends using a password manager like 1password or Dashlane to simplify your online transactions from any device, and setting up a folder in email for increasingly common online account statements.

Survey: The 5 Biggest Retirement Saving Mistakes

Saving for retirement shouldn’t be a guessing game. It should begin with your first job and in most cases not stop until you are collecting Social Security. Yet millions of people struggle to do anything at all, and still more make glaring mistakes.

To help you get started and avoid common traps, Four Seasons Financial Education, a financial wellness and education provider, has identified the top five retirement mistakes of employees at its client companies:

• Over-relying on rules of thumb. Simple rules can be instrumental in getting a worker started saving early and putting them on the right path. Saving 10% of everything you make is better than being paralyzed and shooting for eight times final salary — and definitely better than having no goal at all. But rules can get you into trouble, too. The presumed 4% safe withdrawal rate in retirement is anything but perfect, and retirees with a traditional pension have far different savings needs than those without one. Use rules of thumb as a guidepost and to get started. But at some point you need a customized plan.
• Going too conservative at retirement. As you age, you should gradually reduce portfolio risk by tilting more towards bonds. The previous point notwithstanding, a useful rule of thumb is subtracting your age from 110 to arrive at the percentage of stocks you should own. You may feel old at 65 but you may also live another 30 years. You will need stocks for growth if you expect your nest egg to last that long. Asset allocation is among the most important aspects of retirement planning to get right. If you want to keep it simple, consider a target-date mutual fund which adjusts automatically.
• Taking Social Security benefits early. Although changes may occur with the Social Security system it will remain viable for many years and probably be a meaningful part of your retirement income. Your monthly benefit jumps 8% every year you delay filing between ages 62 and 70. For a lot of people, waiting to 70 and living to age 83 is the break-even point, and everything they collect from then on is a bonus.
• Failing to use a retirement calculator The web has many useful online tools and since your retirement may last 30 year or longer you need all the help you can get. Computers are a tremendous aid. Don’t guess. Some of the best tools can be found at CNNMoney, T. Rowe Price, Fidelity, Schwab and BlackRock.
• Cashing out retirement assets early Financial planners and policymakers have long puzzled over how to prevent leakage from 401(k) accounts as workers quit jobs and fail to roll over all their assets into an IRA or similar account. The temptation is mighty; especially if you have debts you want to retire. But with taxes and penalties this is a costly move. The money you saved over five years might require 10 to replace.

Growing Great Tomatoes!

Now that you want to start growing your own food, here are some tips on growing the perfect tomato!

 

Is it too early too be thinking about your tomato plants? Not if you're the competitive tomato gardening type who wants the earliest and sweetest tomato on the block. Unfortunately, growing great tomatoes doesn't just happen. Sample some of the science experiments on sale at your grocer's this winter, if you don't believe it. Start early with some time tested tomato growing tips to insure you bragging rights this year.

 

1) Don't Crowd Seedlings

If you are starting tomatoes from seed, be sure to give the seedlings room to branch out. Close conditions inhibit their growth, so transplant them as soon as they get their first true leaves and move them into 4" pots about 2 weeks after that.

 

2) Provide Lots of Light

Tomato seedlings will need either strong, direct sunlight or 14-18 hours under grow lights. Place the young plants only a couple of inches from florescent grow lights. Plant your tomatoes outside in the sunniest part of your vegetable plot.

 

3) Put a Fan on Your Seedlings

It seems tomato plants need to move and sway in the breeze, to develop strong stems. Provide a breeze by turning a fan on them for 5-10 minutes twice a day.

 

4) Preheat the Soil in Your Garden

Tomatoes love heat. Cover the planting area with black or red plastic a couple of weeks before you intend to plant. Those extra degrees of warmth will translate into earlier tomatoes.

 

5) Bury Them

Bury tomato plants deeper than they come in the pot, all the way up to a few top leaves. Tomatoes are able to develop roots all along their stems. You can either dig a deeper hole or simply dig a shallow tunnel and lay the plant sideways. It will straighten up and grow toward the sun. Be careful not to drive your pole or cage into the stem.

 

6) Mulch Later

Mulch after the ground has had a chance to warm up. Mulching does conserve water and prevents the soil and soil born diseases from splashing up on the plants, but if you put it down too early it will also shade and therefore cool the soil. Try using plastic mulch for heat lovers like tomatoes and peppers.

 

7) Remove the Bottom Leaves

Once the tomato plants are about 3' tall, remove the leaves from the bottom 1' of stem. These are usually the first leaves to develop fungus problems. They get the least amount of sun and soil born pathogens can be unintentionally splashed up onto them. Spraying weekly with compost tea also seems to be effective at warding off fungus diseases.

 

8) Pinch and Prune More Tomatoes

Pinch and remove suckers that develop in the crotch joint of two branches. They won’t bear fruit and will take energy away from the rest of the plant. But go easy on pruning the rest of the plant. You can thin leaves to allow the sun to reach the ripening fruit, but it’s the leaves that are photosynthesizing and creating the sugars that give flavor to your tomatoes.

 

9) Water the Tomato Plants Regularly

Water deeply and regularly while the plants are developing. Irregular watering, (missing a week and trying to make up for it), leads to blossom end rot and cracking. Once the fruit begins to ripen, lessening the water will coax the plant into concentrating its sugars. Don’t withhold water so much that the plants wilt and become stressed or they will drop their blossoms and possibly their fruit.

 

10) Getting Them to Set Tomatoes

Determinate type tomatoes tend to set and ripen their fruit all at one time, making a large quantity available when you’re ready to make sauce. You can get indeterminate type tomatoes to set fruit earlier by pinching off the tips of the main stems in early summer.