January 24, 2012

7 financial tasks

1.      Read your credit card agreements – If there’s something you don’t understand, now is a good time to dial up customer service and ask for clarification.  Sometimes the answers are obvious – but sometimes they’re not.
2.      Check your service levels – Are you still paying for a gym membership you no longer use?  Forking over a fortune for deluxe cable when you mainly watch Hulu?  Go through you monthly bills and cancel the services you don’t need.
3.      Ask for lower rates – As you review your bills, pick up the phone and ask (politely) for a discount.  It takes only a few minutes to call the cable company, and they just might cut you a break.  But remember: You always have the right to ask for a discount, but its not your right to receive one.  If the answer is no, don’t be a jerk.  Thank the representative and move on.
4.      Optimize your bank accounts – For 17 years, I (J.D. Roth) was an account holder at a large national bank.  I paid an $8 service charge every month, yet I received terrible service and earned no interest.  Eventually I wised up; I switched my checking account to a local credit union and moved my savings to an online high-yield savings account.  You should, too.  To find the best deals, check out bankrate.com or moneyrates.com.
5.      Inspect your investments – examine investment balances and asset allocation to ensure that things are going according to your investment plan.  Don’t have an investment plan?  Start by reading a good introduction, such as Burton Malkiel’s The Random Walk Guide to Investing.
6.      Review your insurance – Are you carrying policies with three different companies?  Consolidate.  Check the deductibles on you auto and homeowners insurance.  Can you afford to raise them and pay the first $1,000 in case of loss?  Is your liability coverage high enough?
7.      Reread your lease or rental agreement – If you rent your home or office, make sure you’re clear on the terms.  While you’re at it, consider asking for a rent reduction.  Sound crazy?  If you’re a good tenant and regularly pay on time, it’s not so far-fetched.
J.D. Roth is the founder of all these ideas.  I, Max Woodbury, did not come up with these 7 tasks.  Check out his blog at getrichslowly.org.

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