We all have bank accounts, investments, insurance and some other products and services that we no longer use and which have no place in our financial plan. Yet, we are reluctant to take the action needed to shed the unnecessary flab. Spring cleaning your financial life allows you to focus the limited time and energy that you have, on important money matters rather than avoidable clutter. A one-time exercise to consolidate finances can bring benefits of efficiency, lower costs and alignment to your needs, without compromising on the advantages of diversification.
Bank Accounts
Unused bank accounts add to the list of things that you have to keep track of. There may be money lying unused in the account, or you may be receiving income from some forgotten investment and you may even be paying fees and charges for it. None of these may be adding to your financial situation. Close unused bank accounts and consolidate income, expenses and investment activities into a few designated bank accounts. One way to do this is for all earning members of the family to have individual bank accounts for receiving their salaries or other employment income. Apart from this, the household should have an expense account to route expenses, and an investment account to make investments and receive investment income.
