As you read through this list you will quickly realize that none of these are URGENT, but don’t be fooled into thinking that the only important things are those that are urgent.
Remember, the best day to replace your roof is when it is sunny.
1. Update (or create) your FLOP
A few years ago I created a financial document that I called my Financial Life on One Page (FLOP). My main motivation was that my wife would have a simple one-stop solution for knowing all of our financial details if I went to be with the Lord a little earlier than expected.
It evolved a bit and now it still serves the same purpose, but it also doubles as a balance sheet helping us track our net worth.
2. Re-evaluate life insurance
Have their been any major changes in your family situation since you last looked at your life insurance? If so, contact your agent to make the necessary adjustments.
If you don’t have insurance or just want to check rates to make sure you aren’t overpaying you should get a free quote here.
3. Check your 401k and other investments
If you have a 401k, 403b, or really any retirement savings you should do an annual check on your asset allocation. For those unfamiliar with this term, it basically means is that you don’t want too many eggs in any one basket.
With the current market, many people will have things out of balance and a check up now would be a good idea. I use Personal Capital to check mine. For those who aren’t familiar with it, Personal Capital is a free online tool that connects to all your investments (even IRAs, 401ks, and 403bs) and once your accounts are connected it automatically shows your asset allocation.
Below is a snapshot of what my out of balance account looks like over at Personal Capital. I will be fixing this soon
They also have a free Investment Checkup tool that analyzes your investments and gives you feedback about suggested changes you could make. All-in-all it is a pretty cool tool that I am still surprised is free.
4. Check your credit report
You can get a free credit report from the big 3 agencies at AnnualCreditReport.com. And you should check this annually. If you would prefer a set-it-and-forget-it option, CreditKarma offers free credit report monitoring and they will alert you whenever there are changes to your report.
So again to remind you – none of this stuff is urgent, just like changing the batteries in your smoke detectors. But it is very important and those who do the important things before they become urgent find themselves avoiding a lot of urgent situations altogether. Which group would you rather be in?