Once upon a time, I found myself with a staggering number of checking accounts – over a dozen, to be exact! (Certainly, that’s an excessive number.)
My previous personal finance blog required me to review various bank accounts, and since there was no harm in opening them, I went on a spree of opening and reviewing. However, as years rolled by, I was juggling numerous accounts with tiny sums scattered here and there.
It was chaotic, to say the least.
When the time came to start closing some accounts, I faced a predicament. I couldn’t remember how these accounts were interconnected. Questions like, which account was set for my credit card auto-pay? Or which one was linked to my Vanguard account, haunted me. While I was indifferent about the numerous checking accounts since they were on the chopping block, the ambiguity surrounding my primary accounts was concerning.
So, tapping into my inner engineer, I decided to visually map it all out.
old-financial-network-money-mapping
Flashback to the early 2000s: behold, my maiden financial map!
Creating your map can be unique to you. My process was straightforward:
- Begin by listing all your accounts – this includes bank accounts, investment platforms, credit cards, digital wallets like Paypal, and so forth.
- Incorporate all your bills and subscriptions – think utilities, streaming services, and more.
- Connect them using arrows to signify links. For clarity, I used the direction of the arrow to indicate the direction of money movement, and abbreviations like ACH for bank transfers, BP for bill payments, and DD for direct deposits.
- Regularly update the map as your financial landscape evolves.
With your map in hand, declutter! Close accounts or subscriptions that no longer serve a purpose, refining your financial blueprint as you go.
If you’ve never done this before, you might also want to consider creating a comprehensive ‘Treasure Map’ that documents everything financially relevant you hold in memory.
Here’s a peek into our current vibrant financial network map:
financial-network-money-mapping
(Note: This post originates from 2016. That’s why you might spot TradeKing, which was acquired by Ally Bank in early 2016.)
Unnecessary complexity can be burdensome, mentally and practically. Streamlining is the key.
Thanks to your financial map, you now have a clear path to simplicity!
Before signing off, if you aim to declutter your finances, do check out our detailed guide. If not, we’ve curated a list of banks offering handsome bonuses for opening an account with them. Cheers!
