Paying the bills and looking over credit card and bank account statements are tasks we usually have no trouble doing -- they are a regular habit once every couple weeks. They get done because they are both urgent and important.
Beyond that, there are a host of financial tasks that need to be completed, which we put off, leaving important money management tasks undone.
In just one day, you can tackle those nagging, undone financial tasks.
This financial health day would be an eight- to 10-hour block of time for doing the things that need your attention. Cross the items off the to-do list, and be done with them (or get them started).
Here are some things you might consider knocking off your list.
1. Write a will. If you have kids or dependants that need providing for, or thoughts on how to divide your property, then don't leave those decisions to be made after you've exited. Decide what you'd like to do and contact an attorney to get them on paper. When looking at professional estate planning, remember to look beyond someone who sells wills -- you want advice, time and skill (at a reasonable price). There's value to sitting down and having an exchange of ideas about what is important to you and the legal tools to accomplish it.
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2. Re-examine your credit cards. There have been many changes in the credit industry in the last couple years. Take an hour to examine what your credit cards are doing for you. Do you still want to earn points, or are miles better? Or cash back? Some credit providers are offering nice sign-up bonuses. Do be sure to examine the fine print and limitations.
3. Get current on your insurance reimbursements. It is quite possible that one of the largest untapped reservoirs of "free money" is being diligent in getting reimbursed for medical expenses. If you don't request reimbursement promptly, all those dollars are just earning money for the insurance company. When your kids are small and the bills are many, this could take a full day each month. Remember to keep careful track of what you submit and when and if you have received the reimbursement.
4. Review insurance plans. While insurance is on your mind, take a look at the types of coverage you have and how you use them. There may be some savings in increasing the deductibles on all the insurance policies. It may also be time to update the list of valuable property listed in your homeowner's insurance, who the beneficiaries are, or add something like life insurance. Remember, the philosophy behind insurance is that it should protect you from financial ruin, so make sure it does (without leaving money on the table).
5. Reduce phone service costs. People are increasingly stripping their land-line phone service down to the very minimum: no long distance, special features or DSL (in favor of a cable connection). Depending on what is available in your area, this could be a ripe area for savings. While you're on the phone with customer service, check to see if you are eligible for any discounts through any groups or your employer.
6. Prepare for the future. Most people have two major savings goals: to save for a college education for their children and for retirement. Take a look at some online calculators to help estimate your needs. Make choices today that will add to your financial security tomorrow, such as 529 plans for the kids and fully funded 401(k)s or IRAs for retirement.
7. Sort papers. Managing money is paper intensive, so it's important to find a filing system that works for you. Whether it is folders in a filing cabinet or envelopes in a box, put your papers where you can find them. Then spend an hour of your time making a list of the details of your financial affairs. If something sudden and terrible should happen to you, then others would know where to start: the bank accounts, retirement accounts, insurance providers, health providers, legal advisors, family members, titles to property, tax records, wills and powers of attorney, funeral plans, mortgage and loans, credit cards and so on.
For many people, resolutions to face financial paperwork dissolve when confronted by the details, and it doesn't help when our financial work falls into our laps. Customer service chores increasingly fall into the hands of the customer. A financial health day (or some time set aside over the course of a few days), is a good way to get on track. If you'll be travelling soon and visiting family, now is a good time to get started.
For some people, their financial paperwork routine is upside down. A lost job or a life transition creates havoc for individuals and families. A financial health day could help them get on the same page with finances. If it is time to talk about what you'd like in the wills or just what to do with investments, it may be time to leave the kids with friends for an evening and open a bottle of wine while spending time talking about the big picture so that you can make a list of things to do for the next financial health day.
