This Little Piggy Goes to Target.

When we start working with a new client, one of the first steps is typically consolidating the number of accounts they have outstanding.  In our experience this makes your finances easier to manage by reducing the mental accounting that needs to take place every time a financial decision is made.  While this has always made sense to us from a simplification standpoint, it also seems to result in lower overall spending.  Recent research from the University of Utah found that “consumers who use multiple accounts spend more money than those with a single account.”

Don’t Bucket Your Savings

While this process ultimately simplifies financial management for our clients, the transition from multiple accounts to just a few is not always an easy one.  Most of us want to use a “bucketing” strategy to save for different life goals.  However, in the event of a true emergency or change of plans, money may need to come from a fund with another intended purpose.  This is why we feel consolidating the number of accounts outstanding offers the greatest flexibility in terms of cash flow and investment, not to mention it may also help with your budgeting goals.

Photo Credit: A National Acrobat

Here is an except from the article written by Lisa Shidler:

In recent months, a greater number of younger investors have come in seeking help, especially as their assets have fallen, said Allison Berger, a certified financial planner with Financial Symmetry Inc. in Raleigh, N.C., whose firm manages $78 million in assets. “It’s been one of my goals to work with young professionals and help them get started on the right foot,” she said.

Sometimes, people in this age group are grappling with a wide range of issues, Ms. Berger said.

“We’re trying to help them pay off student loans, save for an emergency fund, buy the first home and save for retirement,” she said.

Click here to view the original article: Investment News