Do you want to know the secret to having peace with your finances? In every financial decision you make, apply the KISS principle. The KISS principle is “keep it simple, stupid!” That might seem a bit harsh, but the problem with our finances is often we tend to make the simple decisions complicated and creating a lot more stress then if we kept it simple.
I first noticed the KISS principle in personal finance when I started coaching people one-on-one. Those who are struggling with money, tend to make financial decisions that are very complicated. They are attempting to juggle multiple credit cards, while trying to earn cash back points or airline miles that they never redeem. In addition they are using 90 days same as cash on their purchases so they can get “free money” while financing other purchases at “zero” interest. On the other hand those who are winning with money are those who consistently do simple things such as preparing and following a monthly budget. They also save up money towards making big purchases and pay for them in cash. This allows them to stay out of debt and lets their income work for them, and not the bank.
So are you applying the KISS principle to your finances? Personal Finance does not have to be complicated. But when we buy into the culture myth that tells us that we need to have the brightest and shiniest new thing as soon as possible, then we get into the habit of making our finances complicated. Using the KISS principle on your finances is nothing new, people have been doing it for years, but it is so uncommon today. So are you ready to apply KISS to your finances?