Mrs Micah recently issued a personal finance challenge – take one single step towards improving your personal finances.
I thought long and hard about this one and couldn’t think of anything. Truth be told, my finances are in excellent shape (recent stock market troubles notwithstanding). I took a look at the responses to see if I could get an idea of something I might want to do, and found nothing.
Because here’s the thing – I’m on a debt repayment plan (currently scheduled to be debt-free by the end of August), I have a wonderful budget, I’m tracking savings, I have diversified retirement, I have a will, I’ve gone paperless, and I have a plan. What does that leave me?
Well, I just realized there’s one thing I haven’t done – make a public announcement. I don’t mean shouting from the rooftops and spreading the news. I mean a public declaration for accountability. Because next to tracking, accountability is the second biggest reason why goals are successfully achieved.
So, here’s my first (or perhaps last) step on the road to fabulous finances:
1. I have a budget. It consists of a number of categories (some broken down to weekly expenses) for both expenditures and income sources. It also contains additional sheets for future tracking of monetary flow.
2. I have two savings accounts and automatic expenditures into one. The second one has manual deposits from my second job (who actually has to mail checks anymore?).
3. I contribute to my 403b a set amount per paycheck. My employer also contributes, and I track my 401k from my old job. I also contribute the max to my Roth IRA.
4. I have a will, which names beneficiaries (also named on each account). I also have a living will.
5. I have no dependents, so I have no life insurance, but I do have long-term disability. I also have homeowners insurance (for my condo).
6. Everything is set up to run paperless and automatic. I still monitor things on a daily, weekly, or monthly basis as necessary.
7. I am currently working out a budget for my move overseas while on fellowship.
8. I am currently contributing any leftover income to my travel savings account, for post-fellowship.
9. I will be out of debt by the end of August, and have already set up the auto transfers to pay off what’s left.
10. I have two credit cards that I use regularly for rewards (paid off every month). I’ve allocated certain categories of expenditures for each card to maximize the rewards.
So there we go. Now I have some public accountability!