{"id":3203,"date":"2021-10-11T16:10:29","date_gmt":"2021-10-11T16:10:29","guid":{"rendered":"https:\/\/www.simplifimoney.com\/blog\/?p=1583"},"modified":"2024-11-18T10:20:58","modified_gmt":"2024-11-18T18:20:58","slug":"5-financial-monsters","status":"publish","type":"post","link":"https:\/\/www.quicken.com\/blog\/5-financial-monsters\/","title":{"rendered":"5 Financial Monsters\u2014and How to Tame Them"},"content":{"rendered":"\n

Let\u2019s face it, finances can be a little spooky. But it\u2019s easier than you think to get them under control and come out on top, turning them to your advantage.<\/p>\n\n\n\n

So here they are, our top 5 financial monsters\u2014and how to tame them!<\/p>\n\n\n\n

<\/div>\n\n\n\n
\"the<\/figure>\n\n\n\n

The Ghost of Ancient Debt<\/h2>\n\n\n\n

The Ghost of Ancient Debt follows you from one financial decision to the next, waiting for any opportunity to rattle you with interest payments and send your credit score to the grave.<\/p>\n\n\n\n

The scariest part? <\/strong>Not knowing how to pay it off. As long as that debt keeps hanging around, its ghost will keep haunting you. You need a ghost-busting plan!<\/p>\n\n\n\n

The solution? Here\u2019s the good news: <\/strong>You don\u2019t have to pay it off all at once. In fact, for low-interest loans, the best thing might be sticking to your regular payments, like for your student loan or your mortgage.<\/p>\n\n\n\n

The key isn\u2019t to avoid all debt, but to understand where and when it makes sense. Some debt you\u2019ll want to pay off quickly. Other debt you might want to pay off over time, leaving you free today to do something else with your cash, like building an emergency fund<\/a>.<\/p>\n\n\n\n

The rule of thumb:<\/strong><\/p>\n\n\n\n

Take control of that debt ghost by making a plan<\/a> to put it to rest.<\/p>\n\n\n\n

  1. Dedicate a set amount every month to making additional payments on your debt<\/li>
  2. Use that money to pay extra, above your minimum amount, on the debt with the highest interest rate first<\/li>
  3. Once you\u2019ve paid that first debt off, roll those payments into paying off the next one even faster<\/li><\/ol>\n\n\n\n

    When you\u2019ve vanquished all your high-interest ghosts \u2026 er \u2026 loans, evaluate the rest of your debt against other opportunities and decide what you want to do next<\/a>.<\/p>\n\n\n\n

    How Simplifi can help!<\/strong> <\/p>\n\n\n\n

    1. Connect all your loans so you can see your debt balances<\/li>
    2. Target the debt with the highest interest rate<\/li>
    3. Create a savings goal to work on paying it down, making the contributions equal to the extra money you want to set aside for this every month<\/li>
    4. Simplifi will include those contributions in your spending plan, reminding you to make those payments every month!<\/li><\/ol>\n\n\n\n
      <\/div>\n\n\n\n
      \"overspending\"<\/figure>\n\n\n\n

      The Ravenous Glob of Overspending<\/h2>\n\n\n\n

      The Ravenous Glob of Overspending gobbles up your paycheck month after month. Whether it\u2019s a new pair of shoes or takeout to make the kids happy, the Glob will always tempt you to keep right on spending.<\/p>\n\n\n\n

      The scariest part? <\/strong>Worrying that it might gobble up all your cash before the end of the month, eating you out of house and home\u2014with nothing left to pay your bills!<\/p>\n\n\n\n

      The solution? Here\u2019s the good news:<\/strong> You don\u2019t have to stop spending. You just have to understand<\/em> your spending and take control of it. In other words, you don\u2019t need to slay this monster. Just put a leash on it and tame it!<\/p>\n\n\n\n

      It might sound scary to take on the Glob head-on, but worrying about this one is a lot worse than looking at it honestly. Once you do, you\u2019ll start to see where you can save money without giving up anything you really care about\u2014and you\u2019ll start sleeping a whole lot easier.<\/p>\n\n\n\n

      The rule of thumb:<\/strong> <\/p>\n\n\n\n

      Make a plan to put your spending into 3 essential buckets<\/a>:<\/p>\n\n\n\n

      1. Set aside 50% of your income for things you need, like rent and electricity<\/li>
      2. Put 20% toward paying down your debt or adding to your savings<\/li>
      3. Spend the last 30% on anything you want, knowing the rest is covered!<\/li><\/ol>\n\n\n\n

        With this one simple solution, you can take control of your spending and still buy those shoes, or that takeout, with confidence.<\/p>\n\n\n\n

        How Simplifi can help!<\/strong> <\/p>\n\n\n\n

        Simplifi is set up to let you see all your recurring bills & subscriptions so you know where your money is going automatically.<\/p>\n\n\n\n

        1. Set up your income, bills & subscriptions in Simplifi<\/li>
        2. Create a savings goal for whatever you want to put toward debt or savings<\/li>
        3. Check your spending plan to see what you have left to spend<\/li><\/ol>\n\n\n\n

          It\u2019s that easy! If you want to pay special attention to your spending in a certain store, category, or unique tag, set up a watchlist too and keep an eye on it the easy way!<\/p>\n\n\n\n

          <\/div>\n\n\n\n
          \"bills\"<\/figure>\n\n\n\n

          The Dreaded Were-bills<\/h2>\n\n\n\n

          Like a pack of vicious werewolves, the Dreaded Were-bills look like normal, everyday bills until they\u2019re overdue\u2014or until that electricity payment suddenly shoots through the roof. Then they turn big and nasty, raging out of control.<\/p>\n\n\n\n

          The scariest part? <\/strong>Never knowing when they\u2019re going to turn ugly. Paying late fees feels like throwing your money away, and unexpected amounts can threaten your bank balance.<\/p>\n\n\n\n

          The solution? Here\u2019s the good news:<\/strong> By tracking your monthly billing cycles, you\u2019ll always know when those bills are about to be due. Add those \u201csilver bullet\u201d alerts to your personal or work calendar to make sure you pay them on time. <\/p>\n\n\n\n

          As for unexpected amounts, those are trickier. The best thing to do is to add those calendar reminders several days before<\/em> each bill is due, so you remember to look at them well before you have to pay them. That gives you enough time to plan ahead.<\/p>\n\n\n\n

          The rule of thumb:<\/strong> <\/p>\n\n\n\n

          Set up an alert for each bill a week before it\u2019s due:<\/p>\n\n\n\n

          1. Find all your bills and subscriptions<\/li>
          2. Figure out when each one is due<\/li>
          3. Add a reminder for each one to your calendar a week ahead<\/li><\/ol>\n\n\n\n

            It\u2019s a simple solution, but it takes a lot of work to set up, and it takes almost as much work to maintain. Each month, you have to go to each biller\u2019s website ahead of time and then check against your past bills to make sure things look normal.<\/p>\n\n\n\n

            Fortunately, there\u2019s a better way.<\/p>\n\n\n\n

            How Simplifi can help!<\/strong> <\/p>\n\n\n\n

            Simplifi makes it easy to stay on top of your bills:<\/p>\n\n\n\n