The Power of One Plan: How Simplifying Your Finances Can Reduce Stress

We’ll try to make this quick, because you’re probably skimming it between emails.

Oh, wait – was that your phone buzzing? Your work chat pinging? Or just your kids calling you for help with the new WiFi-enabled smart refrigerator?

Welcome to the age of hyper-thinking, where your brain is basically running a mental relay race from sunrise to sleep. If it feels like your thoughts are bouncing around like popcorn in a microwave, you're not imagining it – modern life has turbocharged the number of “thought transitions” we experience. One 2020 study using fMRI brain scans found that we could have over 6,000 of them every day – roughly one every 10 seconds we’re awake.

And thanks to an explosion in technology, it’s getting worse all the time, with fewer moments of peace between each task.

The cost? It’s not just your sanity (although that’s bad enough, right?).

All that cognitive clutter leads to balls being dropped. When it comes to your financial life, that can mean:

• Late fees and missed payments
• 401k accounts you’ve forgotten even exist
• Money sitting in cash that you meant to invest 6 months ago
• Bank login information you have to reset constantly
• No sense at all of how much money you have and what it’s doing

But there is a way to streamline your money and reduce your mental load. Let’s get to it – right after you answer that text.

WHY SO MANY PEOPLE FEEL FINANCIALLY OVERWHELMED

Once upon a time, your parents might have had a checking and savings account. Maybe a 401k, if they’re young enough. And probably a mortgage. Other than an occasional statement in the mail, there wasn’t much to demand attention or react to.

Today, we’re likely to have a lot of accounts – to put it lightly. Multiple checking and savings accounts to take advantage of high rates. A handful of 401ks from various jobs. A wallet full of credit cards to rack up rewards ... and monthly balances to keep tabs on. A mortgage, a couple car loans – don't forget student loans – and maybe even a few “Buy Now, Pay Later” debts. A couple brokerage apps ... digital payment apps ... maybe some crypto. The list goes on.

And then there are the bills. Subscription-based models are ever more prevalent, and they mean a never-ending responsibility to pay for everything over and over again, or at least remember to manage your subscriptions.

If you’re in a relationship, multiply all of this by two. Our Everyday Wealth in America research reveals that most couples today still have some separation of their finances ... and you can see why that may be the case.

Of course, a big portion of business interactions are online now. So, every financial relationship means another website and another set of login credentials. Maybe an app. And constant notifications – your statement is ready, there’s activity on your account, have you tried this new feature?

If it’s hard to manage even the day-to-day financial tasks, add in the question of your overall financial health and it becomes seemingly impossible. And that can paralyze you from taking actions that would make a real difference in becoming financially free – because you can’t even keep up well enough to tell what they would be.

SIMPLIFYING FINANCIAL PLANNING DOESN’T MEAN SACRIFICING CONTROL

The answer, as it often is in this modern world, is to simplify. For your day-to-day finances, that might mean reducing bank accounts and credit cards, signing up for autopay, consolidating loans and finding the right app that can import all your information and keep you on track.

For your big financial goals and accounts, you’ll probably need more than financial organization tips. But here, technology and consolidation can help too, because step one of reaching a goal is knowing where you are.

Consolidating might mean bringing all your money to one company, but it can also mean putting everything into a single financial plan and hiring the right person to oversee it, keep it aligned with your goals, adjust it for any new goals and alert you when there’s a new opportunity or consideration to react to.

You’re still just as much in the driver’s seat – but with someone experienced by your side to keep an eye on your progress and take on the work of managing multiple accounts. It’s not less control. It’s more.

THE EMOTIONAL BENEFITS OF A SINGLE FINANCIAL PLAN

PEACE OF MIND

It’s commonly theorized – and you’ve probably experienced in a million different ways – that uncertainty about important topics leads to anxiety, whether it’s not knowing where your teenage kid is, waiting for the results of an important health care test or having no idea if you’re a few years from financial freedom or bankruptcy. Tom Petty was right: The waiting is the hardest part.

When your financial life is organized and aligned with your goals, you no longer have to guess where your money is going or worry about whether you're on track. No matter what you learn, good or bad, you can gain a sense of calm and control.

STRONGER RELATIONSHIPS

Our research supports what most people already know: money can be a major source of tension in relationships. But when both members of a couple share a vision and are working from the same roadmap, conversations can shift from conflict to collaboration.

A single plan encourages transparency and shared decision-making. And it helps partners and spouses align not just on financial goals, but on values and priorities, helping strengthen emotional bonds in the process.

MOTIVATION

Perhaps most importantly, a financial plan gives you additional drive to change your future. With clear milestones and actionable steps, your goals are suddenly come into focus. This sense of direction can empower you, entice you to push your progress forward (hello, dopamine hits) and allow you to face challenges with optimism.

HOW A FINANCIAL ADVISOR HELPS YOU UNIFY AND SIMPLIFY

Besides the big-picture benefits of a financial advisor – someone to coordinate your accounts, answer your money questions and give you fewer things to think (or worry) about – there can be some more tactical benefits of aligning all your money under one plan as well.

• A more powerful portfolio. Investing is one way to help find financial freedom, but it matters what you invest in. A financial advisor can analyze all your investments to make sure you have the right asset mix for your goals and that your assets are more “properly diversified” and less “hot mess.”
• Reduced taxes. A financial advisor can suggest strategies that could save you money, now and years into the future.
• Lower fees. A financial advisor can select investments with lower-than-average expenses, if appropriate, which helps keep more of your money in your pockets.
• Simplified reporting. Your advisor can give you a single app or website where you can log on to see exactly how you’re doing vs. your plan.
• Customized planning strategies. A bigger portfolio means more complexity to juggle, but it also means more opportunity to maximize what you have. By knowing the whole picture, a financial advisor can execute smart strategies with the goal of making you more money.
• Easier decisions. Getting a bonus or other windfall is great; figuring out the smartest thing to do with it can be a challenge. An advisor can guide you.

READY TO FEEL MORE IN CONTROL? HERE’S WHAT TO DO NEXT

INVENTORY YOUR ACCOUNTS

Make a list of everything you have that’s working toward your big goals – retirement, college, a house, etc. Include any bank accounts, brokerage accounts, retirement accounts, HSAs (if you invest the money rather than use it for current expenses), 529s and other places you have money for these goals.

Then make a list of your debts. Include mortgages, car loans, student loans and other long-term debt.

PRIORITIZE GOALS

Retirement will be your most important goal, along with building an emergency fund so unexpected expenses don’t derail your plan. Beyond that, think about what else is important to you.

MEET WITH AN ADVISOR FOR A CONSOLIDATION REVIEW

Now you’re ready to start simplifying! Set up time with a financial advisor to walk through the information you’ve compiled so they can begin pulling your plan together and, if you choose, help you consolidate your financial accounts. Imagine how good it will feel to get it off your plate and know you’re making progress toward your goals.

GET SOME FINANCIAL STRESS RELIEF

Modern life is a mental marathon, and your future is often the first thing to fall through the cracks. But it’s not your fault. We’re managing more accounts, more apps and more decisions than ever before.

Simplifying doesn’t mean giving up control. In fact, it’s the opposite. With the right plan –and the right partner – you can streamline your finances, reduce your mental load and finally feel like you’re in the driver’s seat. Give us a call to take the first step.