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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 your 1999 IRA or Roth IRA now. Most people
wait until the last minute to make their IRA contributions.
For 1999 IRA contributions, the deadline is April 17, 2000.
If you make your contributions now, instead of waiting,
your money will begin earning tax-deferred interest now.
Ideally, you would fund your 2000 IRA on January 1, 2000,
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.
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