Fri, July 10, 2009 - 3:06:24

Take a Fiscal Health Day

You’ve heard of sick days, vacation days, and maybe even mental health days, but when was the last time you took a fiscal health day?  That’s the question Rob Lieber asks in his recent New York Times article and one we find to be particularly pertinent given the current economic climate.  With so many of us concerned about our money, Lieber explains that taking just one day to make small changes to your accounts can make a big difference in your financial life.

When faced with the daunting challenge of getting “fiscally fit”, it’s easy to become overwhelmed by the immensity of the task, but you can shrink your problem down to size just by using one of our favorite SMALL methods: make a checklist.  When you list out every little action item you need to complete in order to accomplish your overall goal, you take the abstract idea of “fixing your finances” and redefine it into tangible and achievable “mini-tasks.” Sure, making a checklist to help you sort out your financial issues probably won’t make you a millionaire overnight, but we guarantee it will help you sleep easier. 

As Lieber writes in his article, the best way to get started in your mini money makeover is to start with the easiest things first.  So, once you’ve written your checklist, go back and organize all of your tasks by level of difficulty from easiest to hardest.  After you complete each one, cross it off your list and before you know it, you’ll find that the satisfaction you gain from accomplishing each goal will boost your confidence to tackle the tough stuff.

Need a few hints to help you get started on your financial health checklist?  Try these tips and get ready to reap the rewards:

Switch to a high yield savings account. If, like a surprising number of Americans, you don’t already have a savings account, now is the perfect time to start.  Head to the web to learn about online-only banks offering high yield accounts with no minimum balance, or browse personal finance blogs like Gen X Finance, by our friend Jeremy Vohlwinkle, for the inside scoop.  If you’re already in the habit of saving, make sure to check your interest rates.  Just by transferring to a higher-yielding account, you could save considerably more in the long run with minimal effort.

Negotiate. Looking for an excuse to put THE POWER OF NICE to good use?  Look no further than your friendly customer service representative.  Whether you’re looking to lower your credit card’s APR or just want to get a better deal on your cable, you’ll find that a little sugar goes a long way.  So, no matter how many times you’re placed on hold, resist the urge to intimidate and instead try to make the person on the other end of the phone smile.  Trust us, you’ll be happy you did.

Check, check, and re-check.  As we love to say, “little mistakes can spell disaster,” so use your financial health day to carefully read all of your financial statements and monitor them for errors.  After all, a misplaced decimal point could mean the difference between one dollar and one hundred dollars! Once you’ve honed your bill-scanning skills, make sure you stay in the habit whenever you receive a new statement in the mail or online.

Do you have a SMALL tip to help others rev up their financial health?  Let us know with a comment or tweet with us all week long @ThePowerOfSmall!

Posted by Linda and Robin