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Keep It Simple Stupid: Sometimes We Make Things Too Complex

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One thing I've realized over the past few weeks is just how complex we as human beings like to make things, even when they could be so simple. We love to take things that really are pretty basic and easy to understand, dissect them and turn them into something more complex, and harder to understand. The thing is – things don't need to be complex – and are often easier if you just get down to the basics.

Simple Things Made Complex

Here's an example.  My wife and I just had a baby 2 weeks ago (That's him up above!).  For the previous 9 months we had been reading everything we could get our hands on on raising children, what to expect when the babies arrive, how to properly put them to sleep, how and how often to feed them, what things you need to buy for your child before they arrive – and so on.  With all of the information out there things can start to get extremely complex really fast.   I can understand how many new parents feel overwhelmed with all of the decisions that they have to make – it ends up being paralysis by over analysis.

What I've realized over the past 2 weeks, however, is that having a baby and fulfilling their needs – while it can be very complex – is actually very simple.  All the baby needs you to do is feed it, change it's diapers and allow it to sleep.  As long as you do those things the baby will thrive!  Yes, there is a lot more to it, but as long as you do those things – and you just focus on the basics – you'll do just fine!

Personal Finance Made Simple

Like having children – personal finance can also be made much more complex than it needs to be.  People feel overwhelmed with the amazing amount of choices when it comes to different budgets to follow, what types of investments to make, how to get rid of debt, which investment guru to follow, paying for college educations and more.   The thing is – it really isn't that complex.  It really comes down to a few simple principles that you can follow:

  • Spend less than you earn – and live below your means.
  • Stick to a budget.
  • Plan ahead for emergencies.
  • Save for the future.
  • Give!

Everything else is just an offshoot of those basic principles (although your basic principles may be a bit different than mine).

It's Easy To Get Overwhelmed.  Instead – Simplify!

So next time you start feeling overwhelmed when it comes to your finances, take a step back, and try to look at things simplified.    Look at the basic concepts of the subject you're examining, and work out from there. It will help you to stay focused, and remind you of what's important when it comes to money.   Sometimes the most complex solutions aren't as helpful as the most basic of concepts.

What do you think? Do you have a suggestion for ways to keep from being overwhelmed?  Has simplifying a concept ever helped it to make more sense to you? Tell us your thoughts in the comments.

Do You Suffer From George Costanza Wallet? (AKA Thick Wallet Syndrome)

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Over the years I've gone through different patterns in my financial life.

I have the times where I'm dutifully following our family's budget, and constantly keeping track of what is coming in, and what is going out. I'm on top of things.

Then there are the times when I just don't stay on top of things as much as normal. I let things get a little bit out of control because sometimes it just feels like we're doing well enough – that we don't have to keep as close an eye on how things are going.

When we start getting into that routine of not looking at things very closely, I tend to let things slide. I start collecting receipts, coupons and checks to be deposited (and more) in my wallet, and it slowly starts getting fatter and fatter. I end up getting what I like to call “Thick Wallet Syndrome”.

george constanza wallet

I'm not the only one who gets this problem apparently, as it was the subject of an entire episode of “Seinfeld”. 

George has a wallet so thick that it forces him to sit on an incline.  It even starts to give him back problems. His wallet keeps getting bigger and bigger until near the end of the episode, his wallet is bursting at the seams. It can take no more. He tries to put one last receipt in the wallet, and it explodes in a shower of business cards, receipts, coupons and everything else he holds dear. 

View what happens in the video below.

So what's the solution to the problem of thick wallet? 

For me, it's just a matter of getting to the point where I can't sit on the wallet anymore. I end up having to take my wallet out every time I sit down. When it gets to that point, I know it's time to take stock of things. 

It's time to:

  • Enter receipts into You Need A Budget.
  • Shred receipts.
  • Get rid of random business cards from people I'll never call.
  • Get rid of duplicate health insurance, auto insurance and other cards.
  • Deposit checks.
  • Take out all but the most important family photos.

For me the thick wallet is only a symptom of a larger “I don't care about my finances right now” attitude. 

If it only goes on for a week or two, it's no big deal. But if it turns into a month or more – look out.  Back problems (and money problems?) can't be far behind. 

It's time to start watching the budget again, and tracking what we're spending a bit closer.

I know this post isn't completely serious – but have any of you actually gotten to that point where your wallet is so thick that you sit on an incline?  Why does your wallet get so big?  Have you considered a man-purse like Jerry Seinfeld (or Euro bag as he calls it?)