Minimalist money: 6 steps to simplify your financial life

Finances are one of the most complicated things in many people's lives ... and yet, they don't have to be. With a little effort, you can simplify your financial life and end the money headaches most people face.

I consider myself a minimalist. As such, I shy from all kinds of complexities. I look for ways to simplify. I like worry-free solutions — I like to forget about it, so I can focus on things that are more important to me.

Here's how I simplified my financial life: Continue reading...

More about...Planning

How to Replace Bad Financial Habits With Good Ones

It was Aristotle who said, "We are what we repeatedly do ... Excellence is therefore not an act but a habit." If that's true, it makes sense that if we're having financial problems, they probably stem from our financial habits.

Bad financial habits lead to overspending, too much debt, a house full of things we don't need, bills we can't pay, and low balances in our checking and savings accounts. If you're suffering from any of these problems, it's not from a lack of discipline or knowledge — it's probably because of your financial habits.

But there's good news: habits are changeable, if you use the right techniques. I've done it, and so have many others. J.D. has talked a lot about what good habits should be formed; today I'd like to look at some of the effective habit-change techniques found in my new book, The Power of Less. Continue reading...

More about...Psychology

How to Eliminate Debt in Bursts Instead of Incrementally

Most of the time, the standard advice about debt elimination is to pay it off incrementally, over a period of time. We're advised to be patient, and to hold on tight until the day comes when we pay off our debt.

That's good advice, and I endorse it — however, many people have trouble doing things gradually. For them, I suggest trying to do debt elimination in bursts.

I'm a gradual person myself, but there are times when long-term goals are difficult for me. I know how intimidating it is to see a huge debt burden staring down at you, and when you calculate how long it will take to pay it all off, you have two or three years ahead of you. Continue reading...

More about...Debt