- Bargaineering - http://www.bargaineering.com/articles -
Simplify Your Personal Finances
Posted By Jim On 02/19/2008 @ 6:09 am In Personal Finance | 3 Comments
One of the benefits of creating my Personal Finance Users Guide  was that I learned that we an overabundance of unused bank accounts and credit cards. In years past, each one had their purpose but have since been made obsolete. For example, one is a credit union near my home town that linked my finances with my parents and was important while I was in college. Having graduated many years ago, this link has become less and less important.
Another example is a credit card I had in college that never kept up with the times in offering competitive cash back (Discover). Yet another is a credit union account at my former employer, one I kept just to have a local credit union account available (they have extremely good loan rates). However, for each, their time has passed and they need to be shut down.
That’s the mantra for the next few months of my life when it comes to personal finances. One of the things that comes with marriage is the inevitable doubling up of the essentials. A great non-personal finance example would be beds. Every person needs a bed. This inevitably means that when two people get married, you have two beds when you only need one. The same applies for bank accounts and credit cards. She has accounts at a bunch of banks, I have accounts at a bunch of banks, we certainly don’t need them all! (read this discussion about coupled finances  and combining accounts , it’s a hot button issue!)
So, we’re getting married this weekend and then going on a much needed vacation honeymoon. When we get back, we’re going to start paring down all of these accounts and getting down to the basics.
Some would argue that you shouldn’t cancel your credit cards because it will affect your credit score (read this Devil’s Advocate post arguing  otherwise), I say that simplicity is more important than a few points. If you can swing it, try consolidating your cards  rather than canceling them. Closing bank accounts doesn’t appear to have a publicly recognized negative effect on your credit, so cut those away at will!
Article printed from Bargaineering: http://www.bargaineering.com/articles
URL to article: http://www.bargaineering.com/articles/simplify-your-personal-finances.html
URLs in this post:
 Tweet: http://twitter.com/share
 Email: mailto:?subject=http://www.bargaineering.com/articles/simplify-your-personal-finances.html
 Personal Finance Users Guide: http://www.bargaineering.com/articles/personal-finance-users-guide.html
 this discussion about coupled finances: http://www.bargaineering.com/articles/how-we-handle-our-coupled-finances.html
 combining accounts: http://www.bargaineering.com/articles/should-married-couples-combine-finances.html
 Devil’s Advocate post arguing: http://www.bargaineering.com/articles/cancel-unused-credit-cards.html
 consolidating your cards: http://www.bargaineering.com/articles/consolidating-citi-credit-card-accounts.html
Thank you for reading!