How to Budget Your Money: 7 Smart Tips

Home How to Budget Your Money: 7 Smart Tips
Sunny Avenue
Financial Stuart Crispe
8 Jan 2024

Want to simplify your financial life? You're not the only one.


After all, most people find their finances to be unnecessarily complex. Consequently, it affects other aspects of their lives.


A cluttered financial life leads to procrastination and stress. But by simplifying your finances, you can enhance your financial security, independence, and peace of mind.


To free up time and energy for what truly matters in life, here are tips to simplify your financial life.


How to Budget My Money: 7 Smart Tips

How to Budget My Money: 7 Smart Tips

1) Review Your Monthly Expenses

Have you considered whether you pay for a monthly cable bill or a cell phone bill? When was your last attempt at renegotiating? If you are no longer bound by a contract, why not try negotiating a lower monthly payment? Give customer service a call and see if they can make it work.

If that option doesn't yield any results, consider switching providers. Online comparison shopping makes it incredibly easy to find alternatives for services like cell phone providers or insurance.

Remember, your current providers have rivals who are eager to win your business. If you do find better prices elsewhere, present them to your current provider and see if they can match or beat them.

2) Pay Bills with Paypal

Check if PayPal payment methods are available with your service provider. The service allows you to automate transactions, and it also offers PayPal secure payment.

However, you should further consider how secure is PayPal. There is a whole article from the guys from VeePN on the topic of the trustworthiness of PayPal with a detailed analysis of various aspects.

Overall, PayPal is pretty reliable, but that doesn't mean it's out of your control.

3) Automate Your Bills

Setting up automatic payments whenever feasible simplifies your finances. You can put all your monthly bills, ranging from credit cards to utilities, insurance, loans, mortgages, and even rent, on autopilot.

This eliminates concerns about late fees and payments. While late fees can reach somewhere between $25 and $50, they not only increase account balances but also have a detrimental impact on credit scores.

Often, you can set up automatic payments by providing your bank account details on the service provider's website. If a business doesn't offer this option, you can arrange recurring payments through your checking account or your bank's mobile app.

4) Combine Multiple Accounts

The majority of individuals can comfortably manage with only one checking account and one savings account. If you happen to possess more than this, it is advisable to consolidate your multiple accounts into a single checking account and a solitary savings account.

This action will simplify your banking operations while maintaining an exceptional standard of service.

Similar principles apply to retirement accounts. If you find yourself in possession of multiple accounts due to previous employment with 401(k) plans, simplify your life by transferring those plans to a self-directed IRA account.

This not only reduces the amount of paperwork involved but also eliminates account fees, making the management of your retirement assets significantly more convenient.

5) Stop Using Credit Cards

I managed to gain control over my credit card debt by removing the cards from my wallet and securing them in a drawer. Now, I primarily rely on cash, checks, or my debit card for payments.

Would you consider doing the same? If a friend invites you to dinner and you lack sufficient funds in your checking account, offer to invite them over for a meal instead. Avoid using your credit cards for incidental expenses like groceries or fuel if possible.

By steering clear of debt and refraining from charging small expenses on your credit card, you will eventually notice a decrease in your balance rather than a gradual increase each month.

6) PayPal eChecks

Buyers use PayPal eChecks when they don't have a credit card or any other funding source linked to their PayPal account. When making a payment, the funds are transferred from the buyer's bank account to the seller's PayPal account, with the buyer's bank essentially funding the electronic payment.

Before being credited to the recipient's PayPal account, an e-check needs to be cleared by the bank, which can take 3 to 6 business days depending on the bank involved. PayPal eChecks work like digitally sending a physical check from your bank.

7) Hide Your Emergency Fund

Typically, banks hold both savings and checking accounts. While this arrangement works well for rotating savings goals such as a desired expensive smartphone or a vacation, it doesn't serve the purpose of an emergency fund.

Easy accessibility should not be granted to emergency funds. It is crucial to avoid the temptation of using a large sum for non-emergencies whenever you log into your online banking.

Instead of keeping it at your bank, consider placing the funds elsewhere. Options like online banks or taxable brokerage accounts may offer money market accounts or high-interest savings accounts. Ideally, this would allow your funds to earn maximum interest while remaining available when needed.


Financial management always depends on the human factor. But you can change everything and develop the right habits. Use the tips above to reduce the temptation for yourself, automate financial processes, and avoid unnecessary transactions.


Stuart is an expert in Property, Money, Banking & Finance, having worked in retail and investment banking for 10+ years before founding Sunny Avenue. Stuart has spent his career studying finance. He holds qualifications in financial studies, mortgage advice & practice, banking operations, dealing & financial markets, derivatives, securities & investments.

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