Why You Should Take a Personal Money Day
Do you take a personal Money Day? Learn why you should and how you can use a Money Day to take control of your financial life.
Laura Adams, MBA
Listen
Why You Should Take a Personal Money Day
Sometimes the biggest barrier between you and your money is time. You’ve probably heard about some new ways you could improve your financial situation if you just had a few extra hours in your day. Maybe your sister tells you about a credit union that has no fees for checking. A co-worker convinces you not only to fund your 401(k), but to also start a Roth IRA. You learn about a new personal finance blog or a financial podcast that you’d like to dig into. But real life gets in the way.
Why You Should Take a Personal Money Day
There is a solution, though, and it only takes a small sacrifice. If you have grand financial plans that you never seem to have time for, consider taking a personal Money Day. Choose a normal weekday, when banks and businesses are open and stay home from work or don’t do any regular work if you usually work from home. Don’t worry that you’re using a vacation day for “nothing.” This vacation day will repay you many times over, not just now, but for years to come.
How to Prepare for a Personal Money Day
Before your Money Day, get prepared. Make a plan and remove any mental or physical barriers that might prevent you from getting things done. Make a list of the tasks you hope to accomplish and gather all of the information you need, such as phone numbers and account statements. Eliminate distractions. Commit to using the entire day to take control of your financial life. For this one day, nothing else matters.
What sort of tasks should you do on your Money Day? Here are six suggestions:
Money Day Task #1: Find Better Deals
First, create a list of all your monthly expenses and then evaluate them. What interest rates are you paying for your credit cards? What does your cell phone cost? How about your cable bill? Many times, you can find better deals elsewhere if you just take the time to look. Call around or go online to find the best possible deals for the expenses you pay each month.
Use this information as ammunition and call your current service providers to ask if they can meet or beat the deals from their competitors. Maybe they can’t, but it never hurts to ask. An hour or two spent calling utilities and credit card companies can sometimes produce quick savings that you’ll see reflected in your bill for months or years to come.
Money Day Task #2: Switch Bank Accounts
When most folks pick a bank, they just go with the place their parents used or use the one that’s closest to home. That can be costly. Use part of your Money Day to make sure your bank is the best one for your needs.
If you like your current bank, drop by or call to ask if they can eliminate any fees or pay you higher interest rates. Ask if there are other accounts that might work better for your situation. If you’re unhappy with your bank, find a new one. A local credit union is an excellent choice. You might also consider an Internet bank that only exists in the virtual world because they offer some of the highest interest rates.
Money Day Task #3: Review Your Insurance
A great Money Day task is to stop by your insurance agent’s office or meet for a pre-set appointment. Ask him or her to go over your coverage with you to be sure it meets your needs. Yes, insurance can be boring and sometimes it’s confusing. But having the right insurance can make a huge difference for your financial well-being.
If you don’t have enough insurance, you can get hit hard when something bad happens. So make sure your home and auto insurance provide adequate coverage. But it’s just as bad to overpay for too much insurance. Make sure you’re not paying for services you’ll never use and, if you can, raise your deductibles to lower your monthly premiums.
Money Day Task #4: Open a Retirement Account
Though it might sound scary, opening a retirement account is easy. And setting up regular, automated investments is one of the best ways to prepare for your future. If your job offers any sort of retirement plan that matches your contributions, make sure you’re taking advantage of it.
[[AdMiddle]Also consider opening a Roth IRA, which is a type of Individual Retirement Account. An IRA is like a basket where you can put individual investments. The great thing about using a Roth IRA to save for retirement is that you’re never taxed when your investments grow or when you take withdrawals during retirement.
Money Day Task #5: Start Tracking Your Spending
You can’t change your habits if you don’t know where your money goes. You can track your spending with a simple notebook, but most people find that a computer makes it easier. You can create your own spreadsheets or you can use financial software like Quicken. Nowadays, online money management tools are popular. Use part of your Money Day to set up an account at Mint.com or Adaptu.com. Tracking your spending may seem tedious, but this one change can work wonders for your finances.
Money Day Task #6: Set Financial Goals
Most people putter though life without any idea where they’re going. You don’t need to be one of them. Before your Money Day is done, set some financial goals for you and your family. Decide where you’d like to be ten years from now. For goals to be effective, they have to be personal. They have to mean something to you. The following five basic goals would be a great place to start:
- Establish an emergency fund of at least $1,000
- Boost your existing savings to $5,000 or more
- Pay off credit card debt
- Fund your retirement accounts each year
- Save for major expenses, like a home, a car, or a wedding
Goals keep you on track because they give you something specific to work toward. When you know why you’re working so hard and making sacrifices, it’s easier to succeed with your money.
These are just a few of the tasks you might choose to do on your personal Money Day. You could also borrow some personal finance books from your public library, set up a budget, install a programmable thermostat, or even learn how to negotiate your salary. Only you can say which tasks are most important and which tasks you’ve been putting off.
Download FREE chapters of Money Girl’s Smart Moves to Grow Rich
If you like the tips you get in the Money Girl podcast and want to take more control of your money, I think you’ll like my book, Money Girl’s Smart Moves to Grow Rich. The book tells you what you need to know about money without bogging you down with what you don’t. It’s available at your favorite book store in print or as an e-book for your Kindle, Nook, iPad, PC, Mac, or smart phone. Download two free chapters at SmartMovesToGrowRich.com!
Get More Money Girl!
Be sure to check out the huge archive of articles and podcasts here. Also, sign up for the free Money Girl Newsletter and connect with me on Facebook and Twitter! Send your money questions to me through social media or to money@quickanddirtytips.comcreate new email“>money@quickanddirtytips.comcreate new email.
GetRichSlowly.org
This article was written by J.D. Roth, the author of Your Money: The Missing Manual, who blogs at GetRichSlowly.org. It was edited and read in the podcast by Laura Adams.
Image courtesy of Shutterstock
About the Author
Laura Adams received an MBA from the University of Florida. She’s an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura’s previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.