Productive Quarantine Activities: Tune-Up Your Finances

Quarantine Finance Tune Up
 

 

Productive Quarantine Activities: Tune-Up Your Finances 

Nobody was expecting all this time stuck at home. One productive way to use some of this time is to tune-up your finances.

Day 1.   Call, facetime, or skype a friend and create an accountability partnership. Commit to making progress.  Consider allocating points to the person who gets each item done first. Looser takes the winner to lunch when the quarantines end.
DAY 1 VIDEO

Day 2-3. Managing cash flow is key to maintaining a strong financial position. Make a list of your current bills to prioritize your most expensive obligations.
DAY 2-3 VIDEO

Payee

Monthly Amount

Total Amount Owed

Interest rate % if not paid off monthly

Mortgage

$3,000.00

$356,000.00

4.83 %

Credit Card 1

$200.00

$1,400.00

18.97%

 

Day 4-5. Consolidate debt that can’t be paid off in 30 days to lower interest rates. Shop around to several financial institutions. Mortgage rates are at historic lows too. Share with me if you find something you love.
DAY 4-5 VIDEO

Day 6.  Make a list of current income sources to identify the most valuable wealth generator to your financial stability.  Are you doing everything you can to protect and nurture that source?  Often, this is you- internalize that thought for a moment.
DAY 6 VIDEO

Source

Gross Monthly Amount

Interest Rate Earned %

Salary

$8,000.00

0

Savings account

?

0.50

Rental Income

$1,200.00

0

Family member

$400.00

0

Social Security

$1,800.00

0

 

 

 

 

Day 7. Obtain a copy and review your credit report.  Check for errors and notify credit agencies for corrections. Remember to try and stay social virtually. Call your accountability partner to hear their voice and report in together, if you haven’t already.
DAY 7 VIDEO

Day 8.  Take it easy with that online ordering and stick to necessities first.  Manage future expenses by identifying items that will need replacement and estimate their remaining useful life.  Your goal should be to set aside cash reserves to cover that item in the future.  This could be a car down payment or a new pair of gym sneakers with fallen arch support that need replacement now.
DAY 8 VIDEO

Day 9. While you’re binge watching TV, consider multitasking by organizing those digital financial files.  Delete unnecessary files and create an encrypted backup on a different source for emergency purposes.  Do you have a trusted source that knows how to obtain your passwords?  As always, shred unnecessary paper documents. 
DAY 9 VIDEO

Day 10.  Review legal documents. Are wills, trusts, power of attorneys, beneficiaries, and medical directives up to date?  If a document was created over 5 years ago, keep in mind there could be many legal updates or new family members that should review to avoid unintended consequences.  Don’t have any of these? We can help with that. Keep in mind, if you have not indicated your preferences at some point, decisions may be made for you that you may not like.
DAY 10 VIDEO

Day 11. Your quarantine reading list should include at least one prospectus from your 401k or retirement accounts. Even if you don’t understand this legal disclosure, you’ll find yourself more prepared with better questions to ask your financial advisor. It’s easy to download a prospectus from the internet by searching the name or ticker symbol.
DAY 11 VIDEO

Day 12.  Brush up on your insurance policies. By now, if you’ve followed these daily activities, you may be forming new opinions on where your financial strengths and weakness are. One common insurance mistake is to assume that you are covered by someone else’s policy.  In addition, sometimes insurance doesn’t pay under “act of God” or “act of war” conditions.  Review your coverage and save the policy documents to that newly organized electronic file system from day 9.
DAY 12 VIDEO

Day 13.  Set your financial goals.  Here at Simple Impact we coach our clients to live and invest with intention. That means making your money serve you, in all aspects of your life.  Call your accountability partner and have a discussion and tell them what you really want.  Identify if any of the exercises have uncovered a strength or weakness inconsistent with your true goals?
DAY 13 VIDEO

Day 14.  Rinse and repeat. Here is a unique opportunity for all of us to reset our habits. Financial tune-ups are easy to maintain once you are back on track. 
DAY 14 VIDEO

Test yourself. Be at your best. Financial health can help you stay centered and able to adapt.  Reach out if we can help with any of these steps.

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