This New Year, Resolve to Simplify Your Financial Life
This may be your last chance
to get your financial house in order before the millennium.
Are you willing to make 1999
the year you put your financial life in order? Commit to the following
resolutions and you’ll find you have more time and money for the things you
really enjoy.
I Resolve to Simplify My Checking Account
Stick to one checking account.
Maintaining multiple checking accounts requires extra effort and costs more in
service fees. If your bank offers check imaging, give it a try. Instead of
getting your actual checks returned, you get pages with reduced copies of your
checks. The pages can be filed easily in a loose-leaf binder and the bank will
provide a copy of a paid check should you need it.
Want to skip the nuisance and
embarrassment of bounced checks? Sign up for overdraft checking. If you
accidentally write a check that exceeds your balance, the bank lends you the
money and pays the check.
I Resolve to Consolidate My Banking Accounts and
Investments
Many banks now offer
relationship accounts that combine your checking, savings, and retirement
accounts as well as certificates of deposit. You receive one monthly statement
showing all your transactions and all your balances. Better yet, consider a
central brokerage account where you can manage your investing, savings,
borrowing and spending, all in a single account. Some brokerage firms even
supply you with an ATM card for convenient access to your money.
I Resolve to Arrange for Automatic Bill Paying
You can arrange to have your
bank pay certain bills, such as your mortgage, utilities, and insurance
automatically from your checking account on the payment date you select. You
save time writing checks and avoid fees for late payment.
I Resolve to Consolidate My Mutual Funds
When you buy all your funds
from one fund family, you receive a single consolidated statement that makes it
easier to keep track of your investments. Many of the fund families offer a wide
selection of funds and allow you to transfer by phone from one fund to another.
I Resolve to Automate My Investing Strategy
Many mutual fund companies
will be glad to set up an automatic monthly investment plan that simplifies your
financial life. Each month, the fund company takes the amount you specify from
your bank account and invests it in the fund(s)of your choice. You’ll be
spared the bother of writing checks, plus you’ll be making regular
investments.
I Resolve to Sign Up for Direct Deposit
As of the end of 1998, all
Social Security checks and most other federal benefits you are entitled to
receive must be deposited directly into your bank account. You can save trips to
the bank and concerns about possible mail delays by also having your paycheck,
pension, dividend payments or other recurring payments deposited automatically.
Try to make it a habit to check your bank statements regularly to see that all
the deposits are credited accurately.
I Resolve to Organize My Out-of-Pocket Insured
Expenses
Your timely submission of
receipts and documentation for out-of-pocket costs for insured expenses will
speed up reimbursements from medical, automobile, homeowners, and other
insurance carriers.
I Resolve to Buy Insurance Through a Single Agent
You may get a discount for
having your home, auto, life, and personal liability insurance in one place, and
you’ll have one less salesperson to deal with. If you can afford to do so, pay
for the full year’s premium at once and get rid of time-consuming monthly
check writing.
I Resolve to Store Securities with My Broker
To save yourself the trouble
of delivering stocks and bonds to your broker each time you’re ready to sell
an investment, have your broker hold your securities in the firm’s street
name. Then, when you’re ready to sell, just call your broker. The Securities
Investors Protection Corp. insures securities held with a broker for up to
$500,000.
I Resolve to Organize My Tax Records
Keeping organized records can
ensure that you don’t overlook deductions at filing time. Expenses as diverse
as professional society dues and job-related moving costs may be deductible if
you keep good tax records.
Resolve
to spend an hour or two a month organizing your receipts, canceled checks, and
other documentation you’ll need to substantiate your deductions. This may help
lower your tax bill and keep your tax return preparation fees to a minimum.