15 Minutes to Financial Security

By Ellen Rogin

When it comes to changes in our lives, most of us prefer the easiest, quickest, and least painful path possible. That's why products advertising "15 Minutes to Better Abs" sell. Wouldn't it be fantastic if you could have greater financial security in just 15 minutes? Actually, just 15 minutes a week can have a significant impact on your overall financial health. As most people spend more time planning their summer vacations than they do planning their finances, even spending a small amount of time can bring big results. Here are a few ideas for quick and easy steps to take toward improving your financial bottom line:

Set up a IRA or Roth IRA. Most people wait until the last minute to make their IRA contributions. If you make your contributions now, instead of waiting, your money will begin earning tax-deferred interest now. Ideally, you would fund your new IRA on January 1st of the current year, the earliest date possible.
Keep track of the cash you spend. Most people have no idea where they spend their pocket money and often do not know how much they actually spend. If you can keep track of your cash spending for just one month, you will learn a lot about your financial situation. Just keep receipts or jot down your spending. Once you have a summary of where your cash goes, you can decide if your spending is in line with your goals.
Answer the question, "If I were 100% content with my financial situation, what would I do?" Your answer will give you insight into how to set some future financial goals. This is also a great question to answer with your spouse or financial partner.
Learn more about finances. There is an incredible amount of information available today on personal finances. You can browse the library for books, tune into radio and television market reports, or check out great Web sites like MsMoney.com.
Clean out your files. Depending on your filing system, this may take more than 15 minutes, but you don't have to do it all at once. It's likely that you are hanging onto papers, statements, and reference articles you no longer need. Make sure you keep the financial information you may need for future tax reporting, but get rid of all unnecessary documents.
Check your tax withholdings. Many people have too much money taken out of their paychecks and sent to Uncle Sam to use interest-free for a year! You should have the money in your pocket (or better yet, your investment accounts) as opposed to the government having the use of your money. If you received a large tax refund last year, you may be able to raise your W-4 exemptions and reduce your withholdings this year.
Make a contribution to those less fortunate. Helping others by giving to charitable causes helps us focus on and appreciate what we have.
Set priorities. When you look at your long-term financial goals such as retirement and educating your children, is your spending consistent? Would you feel more secure if you had more savings and less stuff? This is just a check-in to make sure you are spending your time, money, and energy creating what you truly want.
Call your attorney and make sure your estate plan is in order. When was the last time you reviewed your will and estate plan? You don't have one? Call now.
Call your auto and homeowner's insurance agent to review your policies. Make sure your coverage is adequate. Over time, your needs may change and your insurance might not be sufficient. It is also a good idea to shop other carriers to see if you are getting the best rates.

By taking an extra 15 minutes each and every week to focus on your finances, you will be exercising your financial planning muscles. The more you do this, the more confident and secure you'll feel. The more in control of your finances you feel, the more likely you are to reach your goals.