Avoiding Money Extremes (Video)
When it comes to managing our money, it seems like many people fall into one of two extremes: neglect or obsession. On the one hand, some people avoid managing their money. It may be out of laziness or the fear of what they will find.
Other people go to the opposite extreme and micromanage their finances. They are obsessed with checking their accounts and ALWAYS have money on their mind. Neither one of these extremes is healthy!
We can achieve balance by becoming mindful of our money. We are aware of the state of our finances, yet not obsessed with every detail. So just how much time and attention SHOULD you spend on money management?
In general here are the money tasks you should be doing weekly, monthly, and annually:
Weekly: Updating your check register, keeping an eye on account balances, filing receipts, paying any upcoming bills
Monthly: Reviewing spending and savings goals with your spouse or partner, creating the next month’s budget
Annually: Checking the accuracy of your credit report, reviewing insurance policies as they renew, reviewing retirement plans and sitting down with your investment advisor (you may want to do this every six months), talking with your CPA or tax professional about tax planning
Where are you on the money spectrum? Are you neglectful, obsessed, or well-balanced?