Simple

Today's financial world is very complex. Your tax rate depends on your income. However, due to income phaseouts and tax credits, your tax rate is not really what tax you pay. Refinancing your home or business loan can help you save a lot of money in your monthly expenses. However, in the long run, it could cause you to pay thousands more in interest. A company you invest in could have great liquidity, solid profits for the last few quarters, and an outstanding projection. However, instability in the market could cause that company's stock price to be very volatile. The only way to navigate through this complexity is to keep things as simple as possible. Athletes often say they perform better when everything seems to slow down. Things seem to get simpler for them. Financially, we should strive for the same state.

Simplicity is easy to obtain if you really want it. First, you should organize your tax situation. Know what your income sources are, and review them periodically. Find out how investments are performing. Always be asking yourself, "Is this a tax deduction? If not, how could it be?" Discuss your tax situation with your tax professional at least once a year for planning. Second, meet with your financial adviser at least once a year. With market fluctuations, last year's big loss in an investment should be met with this year's big gain. Consider your full investment strategy. How many institutions/advisers do you work with? Investment diversity can be better achieved with one investment adviser than with ten. Your insurance situation needs the same consideration. A good way to have too much life insurance is to have multiple insurance providers. Third, get rid of the clutter. Bundle your utilities as much as you can. Cancel unnecessary credit cards - one credit card is all anyone needs. Narrow your charitable giving by becoming a strong supporter of a few organizations, rather than a minor contributor of many organizations.

It is not a coincidence that the most powerful advice we get is often considered simple. Keeping it simple is the way to make your financial world slow down, allowing you to obtain the control you should always have.