BeforeYourNext Birthday-DeniseFisher’s Blog

Get fit, get organized, & get your financial affairs in order

Posts Tagged ‘personal finance’

Getting Your Financial Affairs in Order – Organizing a List into Categories

Posted by denisefisher on November 7, 2010

Organizing the List

Having written a list of everything financial I could imagine wanting to organize (in my previous post), getting my financial affairs in order still seems a bit overwhelming and without an identifiable course of actions. So I grouped my financial issues into categories, and was able to pinpoint the category with the highest priority for action.

Now all this planning and writing about how to get things in order may not seem like the most effective way to get things done, but I’ve found that thinking about what I have to do is part of the process.  And separating the thinking from the doing allows for focus and keeps me from second guessing whether or not I’m working on the right task.

After some thought and some editing, and an attempt to list these categories in order of priority, I ended up with 13 categories. This is how my organized list turned out:

Imminent Issues & Recurring Events

  • Timely financial follow-ups
  • Bill paying procedure
  • Eliminate recurring costs, avoiding penalties
  • Not giving away time, services, or reimbursable expenses
  • Leaving money on the table
  • Maximizing income
  • Additional sources of income

 

Getting in the Financial Mindset

  • Read, watch, listen to sources of financial information
  • Identify books, publications, online sources, radio, TV, podcasts to follow, courses to take, discussions to have, materials to use, experts you trust
  • Establish routines, times, goals for keeping up on financial issues and news topics
  • Create a plan of what to do, where and when to do it, and an estimate of how long it will take
  • Adjust your plans and timeframes, as your financial organization progresses
  • Allow time for research, decision-making, and breaks to catch up on your plan

 

Big Picture Assessment

  • Net Worth
  • Credit reports and FICO score
  • List of all assets, debts, accounts, terms, beneficiaries

 

Back-up Plans & Getting Ahead of the Game

  • Emergency savings
  • Payback strategy
  • Maintenance/repair/remodel/replacement plan

 

First Steps of Estate Planning

  • Will
  • Revocable living trust with incapacity clause
  • Advance directive & durable power of attorney for health care
  • Updated list of beneficiaries

 

Record Keeping & Filing (including setting up a filing system)

  • Identifying all areas of finance and other important papers and things to file

 

Financial Review of Things Already in Place

  • Retirement
  • Savings
  • Spending Patterns
  • Loans & Credit
  • Investing
  • Real Estate
  • Insurance
  • Estate Planning
  • Taxes
  • Recurring auto payments and deductions

 

Identify what needs to be changed, added, and eliminated

  • Note the obvious and the things you don’t know
  • Research or consult to help make your decisions
  • Define how to make these changes and what steps need to be taken

 

Goals & Policies

  • Gift Giving
  • Housing/Real Estate
  • Savings for College/Education/Training (self or others)
  • Retirement Plans
  • Travel
  • Next Career or Business Plan
  • Purchase Plans & Wish List
  • Borrowing/Debt Policy
  • Net Worth Goals
  • Integration of Other Life Goals with Financial Goals

 

Automating Finances

  • Savings
  • Payments
  • Retirement Funds
  • Tracking Expenses & Financial Status
  • Paperwork Management & Tax Records
  • Inventories of possessions
  • Financial Review Plan

 

Finding & Using Financial Professionals

  • Tax planning
  • Purchase plan
  • Inventory documenting all possessions
  • Tax planning, record keeping & filing
  • Paperwork management

 

Revisiting the Topic of Additional Sources/Streams of Income

  • Insurance assessment (including Long Term Health Care)
  • Financial goals (and integration with other life goals)
  • Electronic financial record keeping
  • Borrowing/Debt policy
  • Financial review plan

 

Integrating Other Aspects of Your Life Plans (Get Fit, Get Organized, and Get Financial Affairs in Order)

  • Purging, liquidating, consolidating, and reorganizing your stuff
  • Planning meals, food purchases, and food inventories that support your budget & health
  • Making choices about your lifestyle and activities that support your financial goals
  • Teaching your children or other family members responsible financial management

 

Next Steps – What, Where, and When

My next step will be to identify specific concerns that fall into the first category – Imminent Issues and Recurring Events. I want to rank them into a prioritized list so that I can tackle them completely, one at a time. Working “at” a task isn’t usually the difficult part – it’s FINISHING that’s the toughest. But finishing is what needs to be done to get results. The “where” and “when” of my next step will follow my previous weekly routine. Weekly progress may seem like a slow pace, but it IS progress, and it’s realistic for me. So that’s what I’m going with for now.

  • What: Identify my imminent financial issues, and recurring expenses, and put them in writing
  • When: Sunday, 11 am – 2 pm
  • Where: My designated work table (this is a clear space away from my usual desk, where I know I will get things done – you should try to find such a place for yourself, if you don’t already have one)
  • Pre-planning task: Scan through financial files and paperwork no later than Saturday evening for reminders of pressing matters, making notes as needed

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Getting Your Financial Affairs in Order – Where to Start

Posted by denisefisher on October 21, 2010

Financial Plan There is one main reason why people do not have their financial affairs in order: it’s easier NOT to do it. It’s a task that can be overwhelming because there’s no instruction book, no deadlines, and no starting point. And everyone’s situation is different.

So, right here, right now, I’m going to create a starting point, put together a customized instruction book and action plan, and establish deadlines and timeframes.

The Starting Point – Choose a Model and Built on It

I am using the Suze Orman’s Action Plan as a starting template for my project of getting my financial affairs in order. Another resource that I like is Dr. Lois Frankel’s book Nice Girls Don’t Get Rich. By using these books as guides, I can write out a list of financial categories, add more specific tasks, and put together topics that will be used in my plan of action. So my starting point is to identify what is in the plan that will make me feel that my financial affairs are in order.

Put Together a Customized First Draft List

I started by just listing everything financial that came to mind (either from reference sources, or my own experiences), focusing on things I knew I needed to include for organizing my financial affairs. Consulting the suggestions of experts will help you identify the financial issues you haven’t thought of or don’t know enough about. I used the Table of Contents from the above mentioned books as my first source for identifying financial issues to put on my list. I could skip some of the topics that didn’t apply to me, and I could add other items that came to mind as I read through the contents. I know there are lots of other resources out there with helpful guidelines, but it would be easy to get bogged down in the research behind putting together the BEST plan ever. And I don’t want to do that. This is not a one-time project, and I will revisit this plan later, as situations change, and I have the need to add financial tasks to my list. For now, I will keep things simple, and start with the basics. Here are some of the categories and various items I came up with to start:

  • Credit
  • Retirement
  • Saving
  • Spending
  • Investing
  • Real Estate
  • Additional sources of income
  • Insurance
  • Net Worth
  • List of all assets, debts, accounts, terms, beneficiaries
  • Credit reports and FICO score
  • Bill paying procedure
  • Estate Planning
  • Will
  • Revocable living trust with incapacity clause
  • Advance directive & durable power of attorney for health care
  • Updated list of beneficiaries
  • Tax planning
  • Emergency savings
  • Payback strategy
  • Purchase plan
  • Maintenance/repair/remodel/replacement plan
  • Inventory documenting all possessions
  • Insurance assessment (including Long Term Health Care)
  • Financial goals (and integration with other life goals)
  • Timely financial follow-ups
  • Eliminate recurring costs, avoiding penalties
  • Tax planning, record keeping & filing
  • Paperwork management
  • Electronic financial record keeping
  • Maximizing income
  • Not giving away time, services, or reimbursable expenses
  • Leaving money on the table
  • Borrowing/Debt policy
  • Financial review plan

Next Steps – What, Where, and When

At this point in the process, I started to run out of steam for what I needed to do next – which is to put the list into some kind of order. It took me about 3 hours to put a first draft list together and write it all down. But I also realized that there were next steps that I needed to identify before stopping for the day. I needed to identify what the next task was (organizing the list), including the “where and when” of doing that next task.

Creating a standard default “where and when” for this activity as a project that is repeated on a weekly basis is a good practice. Even when there are interferences that call for skipping a week or implementing an alternate plan, having a “Plan A” to return to provides the structure and continuity most likely to help me stick with this project for the long haul.

“Where”, was relatively easy for me to determine. I have two identified work spaces (depending on which location I’m in) where I know I do my best financial work. I don’t usually have to worry about interruptions from others, though when I have had this issue to deal with, my preferred “where” has been the local library reference room.

The “when” is trickier – things come up which can make it difficult to keep an appointment with myself (including my motivation and momentum, which is not to be overlooked). I first think of how long I will need (and how long I can stand) to work on and complete the next step. Usually two hours is the maximum tolerance level for staying focused on one task, non-stop. But I will allot three hours, because I will also need to write down what I’m doing, and I think it’s realistic for me. I’d like to connect this task with my weekly viewing of The Suze Orman Show, which is on Saturday nights at 9 pm (and which I follow with an hour of watching another financial show – Till Debt Do Us Part, which comes on immediately following Suze Orman). But I know I’m unlikely to be in the mood to work on my project at 11 pm on a Saturday night. So, I will plan to work on this task Sunday, from 11am – 2pm. In preparation for this timeframe, I will make it a point to do some pre-project planning on Wednesday at 7pm. There will be no defined length of time for this planning task – simply reviewing the information I have, and doing any additional work that I feel like doing will be the goal. To summarize, here are my next step details:

· Task: Organize the List

· When: Sunday, 11 am – 2 pm

· Where: My designated work table

· Pre-planning Review: Wednesday, 7 pm

Motivational Task: Watch The Suze Orman Show, Saturday, 9 pm; followed by Till Debt Do US Part at 10 pm.

Posted in Estate Planning, Finances, Mindful Spending, Organization | Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a Comment »

What Happens To Your Online Accounts When You Die?

Posted by denisefisher on May 14, 2009

Fortune Cookie of Impending Death Here are some thought-provoking questions that may elicit a sense of uncertainty, if not panic:

  • Do you know how many online accounts you have?
  • Do you have a list of them anywhere?
  • Is that list written or printed out (not just on your computer)?
  • What about passwords to your accounts?
  • Have you informed anyone about your account info, and do they know where/how to find and access it?
  • Where are your digital photos and important electronic documents kept?
  • Where are your purchased music files and other purchased downloads stored?
  • Are your media files and other documents accessible to someone you’d want to have them?
  • What about your private files or accounts – are there any you’d want destroyed or closed without being viewed?
  • Do you have any arrangements made for services or subscriptions that are automatically renewed and charged to your credit card or other financial accounts?

NPR’s program, All Things Considered, did a story on 11 May 2009 about this very topic. Click on this link to read about, or listen to, Your Digital Life After Death.

Over the past few years, several businesses have emerged with online sites and subscription services to deal with the related issues of legal matters, privacy concerns, electronic bequeaths, and designated access, as well as legacy wishes and remembrances.

Listed below is an extensive selection of online resources that might help you in planning the digital details of your eventual demise – they include all of the services I could identify as of the date of this blog posting. I have visited each of the sites to find out what they offer, how their system works, and the rates they are currently charging for their services. The summary descriptions are provided here:

AssetLock.net – This site provides a digital version of traditional estate planning. A template is provided to help remind you of what to include. You can store documents, instructions, and include a listing of accounts and passwords that will be accessible to designated individuals upon your death. You decide who can access which of your entries. There are 3 levels of services and pricing: 20-100-unlimited entries; 20MB-1GB-5GB storage; annual fee of $10-$30-$80.

VitalLock.com – This site describes itself as being in the “Alpha” stage of development and is not yet active.

LegacyLocker.com – A seemingly well-developed service and clearly, the most widely promoted system of its type, this site requires users to designate beneficiaries for their information as well as verifiers of their death. One of its defining criteria is the human oversight element, which requires that a human being provide the company with a death certificate before it will release information or access to the designated beneficiaries. There are 2 levels of services and 3 levels of pricing: the free account includes 3 assets, 1 beneficiary, and 1 legacy letter; the premium service includes unlimited assets, beneficiaries, and letters, and can be paid by a $30 annual subscription or a one-time fee of $300.

SlightlyMorbid.com – This site’s purpose is to send messages or notifications to your online friends in grave situations (not just the situation of your death). Plans are priced as one-time fees, which is described as being similar to the way you would pay for someone to prepare a will. It covers situations of death, natural disaster, accident, serious illness, or whatever you specify. You designate one trusted friend (or up to 5 or 10, for premium plans) and that friend will send out a message to 10 (or 30 or 50, for premium plans) of your online contacts to notify them of your condition, based upon messages you have written in advance. Your trusted friend cannot view or change the messages – they can only activate their delivery. Changes and updates are free for 3 years; after that, changes can be made with a small update fee. The one-time set-up fees are $10-$20-$50.

GreatGoodbye.com – This site’s tagline is “e-mail from the grave.” Its service allows a trusted person with activation codes to send out your final e-mail message with a photo attachment upon your death. When the trusted person activates the process of delivering of your message, a notification is sent to your e-mail address and you are given 21 days in which to cancel the ultimate delivery of your message(s).  I suppose this is in case your trusted person makes a mistake, becomes no longer trustworthy, or you make a miraculous unexpected recovery. Premium packages can include audio or video attachments. There are 4 levels of services and each service has the option of an annual or one-time fee: 1-3-10-500 e-mails; yearly fees of $10-$20-$36-$50; one-time fees of $39-$87-$150-$219.

MyLastEmail.com – This site’s service is basically an online memorial page that you set up in advance, and is made accessible upon your death. The free service includes the posting of 1 document, 1 image, 1 video, and notification of 2 recipients. Premium packages are mentioned on the website, but apparently are not yet available.

YourPersonalScribe.com – This service is unique in its personalization of creating your life story. Sharon Scribe (yeah, that’s who provides this service) writes your personal obituary in advance, with your help. She uses a questionnaire followed by a personal interview with you, as well as interviews with close family members, friends, and colleagues, to prepare your life story. I don’t know what will happen when Sharon Scribe dies, but she also writes wedding toasts, poetry, and tributes for other special occasions in one’s life. The base rate for this service is $300, but has some flexibility for lower income clients.

Deathswitch.com – This site’s model has a very futuristic sci-fi feel to it (even the audio you hear when the page opens or when you roll over a link is very space-age sounding). They call it information insurance. I’d call it a life-watch service. It’s very different from others in that it does not require you to designate a trusted person with the responsibility for initiating the services upon your death. The website summarizes it nicely as “an automated system that prompts you for your password on a regular schedule [at intervals designated by you] to make sure you are still alive.” If you do not respond to multiple follow-up prompts, pre-scripted messages are automatically e-mailed to your named recipients. The company encourages you to test out the service by having the death messages sent to yourself. If for some reason you did not reply (but are still alive) you will get a preliminary message allowing you to click a link that says “Wait I’m still alive!” You can set up a free account that will send your message to 1 recipient with no attachments. The premium account sends up to 30 different messages to up to 10 recipients each (300 recipients total). I could not find the rate information for premium accounts on the site, but an Associated Press article about this service mentioned that it was $20/year.

I scanned through my hand-written list of online accounts (I have 7 pages worth) and found these representative accounts among my listings:

e-mail accounts AOL, Yahoo, G-mail
social networks Facebook, Twitter, Linked In
financial accounts credit union, bank, mortgage company, Visa, home equity line of credit
investments/retirement Thrift Savings Plan, brokerage accounts, retirement account
travel-related sites frequent flier miles, Travelocity account
merchandise accounts Amazon, PayPal, ebay, iStockPhoto, iTunes
image/video/communications Flikr, YouTube, Skype, Oovoo
recurring/renewable payment accounts Verizon DSL service, AOL internet service provider, Corporate Housing ad, GoDaddy domains, Franklin County property tax

My listing will probably remind you of some of your accounts that need to be considered in your planning arrangements. If you prepare and store documents or photos online (also referred to as “the cloud”) you need to take these files into account too. It’s not much of a virtual leap to go from the cloud down to earth and onto your computer and hard drives. You’ve got a lot of information on your computer to consider in your planning too.

These aren’t just issues to consider in anticipation of your death. With so much information being stored electronically, you’ve got a lot of digital eggs being kept in various compartments, but all in one basket.

Have you ever had your computer crash or had your computer lost, stolen, damaged, or destroyed? I have. And so have lots of others. Find someone and ask them about it – they’ll tell you what it was like. When my computer was stolen, the most devastating loss was my collection of family digital photos. The thief could’ve had the computer. I just wanted the files. I had some of the files printed or stored elsewhere, but most of them weren’t backed up, copied to others, or printed out as photos. They were gone forever.

Don’t be lulled into a false sense of security by thinking you’re covered because you back up your files onto an external drive or some other media. If someone breaks into your home and steals your computer, and the hard drive or other media is stored nearby, they’re going to take them all. Same thing for a natural disaster. A fire, flood, electrical- or wind-storm comes along and all your electronic equipment and storage media is likely to suffer the same fate. Ask the victims of Hurricane Katrina.

You’ve got options for saving your data and planning for access and/or deletion of your online accounts, but you have to put the plans in place now. You may not have the advance notice of your impending death in which to take care of these preparations. And even if you do, will you want to spend the remaining months of your life getting your accounts and online documents in order? Will you even have the energy or ability? Think about it, make a plan, and take some preliminary action to get things started. It’s better than doing nothing.

Here’s a closing thought: You can put together your own service plan – a simple, low-tech version of the packages mentioned above. But you actually have to do it. If paying someone else will get you to take action, it would be worth doing that. Even if you start out with a free online plan or put together a paid premium plan for one year, you’ll have organized your information and considered the details of your arrangements, and would be able to cancel your service after a year, by switching to your own at-home version. Enlist another family member to take on this task with you. They need to do it too, and may not have thought about it or started it either. Use the power of partnership and accountability to get your affairs in order.

(Editorial note: for any of you who may be wondering about my previously mentioned grand finale of wardrobe organization, I am in the process of completing and editing it. It’s very long and detailed, even more than my usual posts. So it may be published in a format other than a blog post. Updates will follow.)

Posted in Estate Planning, Finances, Legacy, Organization, Personal Style, Public Radio | Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a Comment »

Productivity & Wardrobe Maintenance – OR – Why Doesn’t Stephen Covey or David Allen Ever Mention Laundry?

Posted by denisefisher on May 6, 2009

Ironing Man Have you ever noticed that all the productivity experts and best-selling authors on the subject of efficiency rarely, if ever, mention such basic topics as doing laundry or preparing meals? These are tasks that everyone needs to do frequently, on a regular basis (or they at least need to have someone else do these tasks for them, which I’m guessing is the case for the aforementioned authors). But for everyone who doesn’t have a secretary, personal assistant, and housekeeper, and still wants to be productive and efficient, you need to have an effective system for wardrobe maintenance. I’m assuming that anyone who’s reading this already has some sort of system for laundering their clothes. How’s that system working for you? It might be time to make some adjustments to your routine or tweak the details to streamline the process. Things may have changed in your life or in your living situation. You may have slipped into some less-than-optimal habits by continuing a “just for now” routine that you started long ago. You may have been doing your routine long enough that you now know what you’d like to change (if only someone would assign you a maintenance redesign project). Well, consider this a call to begin a mindful reassessment of your wardrobe maintenance system. In most cases, this will be a fairly easy task that you can undertake to make your system into something that’s not filled with drudgery or chaos. Who wouldn’t want that? I have four points to consider to help improve your wardrobe maintenance system:

+  Location

+  Supplies & Equipment

+  Space

+  Routine

You need to have a designated location where things are kept and processed during the maintenance routine. Remember the saying “a place for everything and everything in its place”? Well, the first part of that phrase is probably the more difficult of the two. And if you’re going to streamline your system, you might need to rethink the default locations you’re currently using. Don’t stick with a centralized laundry hamper in the hallway that the entire family has to use if it doesn’t work for you. Don’t force yourself to cram all of your dirty clothes into one basket, if you need more space or if you need additional containers for sorting. Think of yourself as the system designer for this process and make each element of it work in a way that naturally flows for you. If there are designated spaces for what you need to do, at the location you need to do it, and the supplies and equipment you need to use, it will be easier for you to develop a streamlined routine, and you’re more likely to sail through the process without moments of indecision or settling for what you’ve got to work with.

Consider these criteria for the aforementioned points.

+ Location

for clothes awaiting cleaning or repair – this might be a place where clothes are hung, or more likely, a hamper or clothes basket; preferably, near the source of that decision
where clothes are cleaned and repaired – this refers to where the do-it-yourself tasks are done as well as the take-it-somewhere tasks – where do you polish your shoes or sew on a button? have you located a designated shoe repair place or a place where you would go for alterations?
where clothes wait to be put away – not where stacks of clothes sit for weeks after laundering, but where they wait during the cleaning, drying, pressing, hanging/folding process (the top of the dryer is only so big)
where clothes go once they’re cleaned or repaired – again, not the top of the dresser or hanging on the closet door; this location should be determined by the space allocation of your wardrobe and how you rotate your garments (most recently worn go in the back) or how you organize your clothing (such as by color or sleeve length) – the main point is to have a functional storage system and to avoid stuffing things into drawers or into the closet just to get everything put away
– where supplies for the process are kept – preferably, at the location where they are to be used, and in a location where they are easily viewed and accessed

+ Supplies & Equipment

– containers, kits, or stations where supplies are grouped and always kept – having your supplies grouped into kits will make them easier to find and use; having them stored in a container makes it easier to transport them to the precise task area where they’ll be used or to move them off a shelf when the need arises, such as for cleaning, taking inventory, or a dreaded plumbing leak
– stain treatment supplies – if you use a stain stick that can be applied days before being laundered, it may be useful to have multiple sticks and keep them at each location where dirty laundry is collected; these can also be good to have for travel
– laundry products – preferably, you can keep these to a minimum and avoid multiple opened products and almost-empty containers; if you have to take your laundry to another location to do your wash, having your products in a carrying container will make it that much easier to transport, and make you less likely to forget something
– sewing kit, buttons, etc. – everyone should be able to sew on a missing button, but you need to be able to find all the supplies you need to do this; keep buttons, needles, safety pins, several colors of thread, and a small pair of scissors in a small sealable container that you can easily find and take to a work space
– shoe polishing kit – a nice shoe polishing kit will greatly increase the likelihood that you will polish your shoes and get more life from them; this is an item that may be worth a little splurge – compared to the price of new shoes, the cost of a shoeshine kit could be a great value; make sure that you have polish colors that correspond to the shoes you own, and don’t forget to add white liquid polish to your kit if you need it for touching up your tennis shoes or summer sandals
– laundry processing equipment – this might include hampers, laundry baskets, laundry bags, drying racks, clothes hanging racks, clothes pins, ironing board & iron, hangers, or storage organizers; having the right tools for the job makes the task more pleasant

+ Space

– space for wardrobe maintenance items – not only do you need to have a designated location for collecting dirty laundry, you also need to have space for it; besides that, you may need baskets or containers for hand-washing & special treatment items, dry cleaning & repairs to be outsourced, items to donate or otherwise purge, and items needing do-it-yourself repairs (one more tip regarding laundry baskets & containers: rectangular-shaped containers are almost always better than round, or even elliptical-shaped)
– storage space for supplies & processing equipment – if you don’t have space and easy access to your cleaning & maintenance products and supplies, it’s not going to be fun; keep in mind the portability factor too, when thinking about your space and storage containers; and make it easy to put things away
– uncluttered flat surfaces – this is a tough one, because cleared flat surfaces tend to attract stuff galore, but you need such spaces for sorting, preparing, processing, pressing, folding, regrouping and reorganizing; so do your best to find some, even if it comes from a folding table
– a container for collecting pocket contents, lost buttons, etc. – you’ll probably want a container that has a sealable lid, so that you don’t end up with coins, buttons, and tokens spilled behind the washer and dryer; if you’re good, you’ll empty this collection container after each laundry event, but even if you’re not up to that level of efficiency, having a collection container can be an acceptable option and better than the alternative (setting coins and buttons on top of the washer or dryer where they inevitably will be knocked off into some place where they shouldn’t go)
– laundry sink or tub for pre-treating, soaking, hand-washing – granted, if you don’t have one of these, it’s hard to just create space for one, but you can put it on your wish list; and if you do have one, keep it clear of clutter and stocked with a scrub brush and other supplies you need to have on hand; an alternative to a sink or tub might be a plastic wash bin designated for that purpose
– space for air drying – this can be a clothesline (outside or inside), a drying rack, or a hanging device that’s used over your tub; just make sure that its accessible when you want to use it, and that it’s easily returned to its non-drying function when you’re finished (think retractable clotheslines and fold-up racks)
– space for processing cleaned clothes – this combines several previously mentioned elements, but I’m repeating it here because you need to have space (and maybe special racks) for hanging clean clothes, folding clothes, towels, & linens, sorting & stacking clean items, room to press garments that need ironing, and space to regroup and organize items that will be returned to different rooms (if you have to take your laundry out to be washed, you may need provisions for covering the clean items during transport)

+ Routine

– designate day(s) for laundry and wardrobe maintenance – laundry may be done weekly, but you can also integrate clothing repairs, shoe polishing, and other clothing maintenance tasks on this designated day; handling dry cleaning and other outsourced types of tasks can be relegated to days when you run errands
– frequency of laundering/cleaning – reassess how frequently you launder or dry clean your clothes – not how many times a week you do laundry, but how many hours you actually wear a garment before laundering it; if you put on an outfit at the end of the day to go out for the evening (and aren’t working up a sweat by dancing), perhaps you can wear it another time before washing it; be aware that over-washing and excessive dry cleaning can significantly shorten the wearability of a garment, not to mention the extra labor and resources it takes to do that extra cleaning
– share the labor – this point is especially directed at women, who typically take on the job of family launderer by default (and probably includes the wives of Stephen Covey and David Allen); don’t be a martyr and don’t encourage helplessness and dependency by taking on the entire household’s wardrobe maintenance; teach self-reliance by instructing children to maintain their own clothing. Release your care-giver instincts, lower your standards, and let them do it themselves! Household members should have individual responsibility for their own wardrobe items and bed clothes, and should share or rotate tasks for “community” laundry tasks (such as towels and linens).
– consider all-hands activities – engage the entire household for such things as hanger-gathering, quick & easy closet purges, donation gathering, shoe polishing night, curtain laundering, bed linen washing, and seasonal clothing transfers
– plan for complete follow-through of the process on laundry days – avoid musty or mildewy clothes forgotten in the washer, wrinkled clothes left in the dryer, and missing or disorganized clothing items that can’t be found because they were not put away; don’t start the process unless you know you’ll be able to follow it through to completion
– integrate a compatible activity with your laundry processing – make your laundry day more productive by integrating individual or family activities that can be done between the steps in the process; listed here are some examples of such activities:

  • exercise, walk, ride a bike, do yoga or a workout routine between loads
  • make it a cooking/baking day or prepare salad/vegetables for the week
  • read a book, magazine, or browse through a cookbook
  • listen to podcasts or audio books (or my favorite, This American Life)
  • dust bedroom furniture, baseboards, light fixtures, and clean mirrors, floors, door frames, and light switches
  • straighten up the closet, dresser drawers, night stands, and linen closet in preparation for clean laundry
  • write up plans for the week, update your calendar or address book, write e-mail messages or replies, write a few pages for your book/screenplay/business plan/blog
  • plan your menu for the week and write up a grocery list

– schedule an after-laundry activity – create a sense of urgency to get the task done, and provide something to look forward to (preferably, something that doesn’t involve everyone needing to shower first [you know, the hot water issue after laundering]; and maybe you should pass up an activity that involves spending or an eating-out activity – it would be good to get out of the habit of using these activities as a reward, for obvious reasons); listed below are some suggested alternatives:

  • go visit some friends or family (hello grandma!)
  • go to the park, pool, or playground; play tennis, kickball, ping-pong, or volleyball
  • set up a backyard game of croquet or badminton and have a cookout
  • go for a drive – just exploring or revisiting old neighborhoods or new sites
  • have dinner at home (maybe with food from the cooking/baking you did), then play a board game or do a family project or activity together

Bonus: Money-saving Aspect of Maintenance

Taking care of your wardrobe items is inherently a money-saving venture, but if you can make some adjustments in your maintenance system, you can save even more.

Save money by extending the life of your clothing. Extend the life of your clothing by
– making repairs & alterations needed to keep the garment functional
– reducing the frequency of laundering or dry cleaning
– reducing the wash and rinse temperatures
– eliminating or reducing the frequency of using heated drying
– reducing the amount of laundry detergent and fabric softeners used
– using a front-loading washer rather than a top-loading model, if you have the choice

Save money by eliminating or reducing the use of laundry products:
– fabric softeners, dryer sheets, anti-static products, and spray starch are products that are best used sparingly, if at all
– beside the cost of these products, fabric treatments affect the surfaces by making them slightly resistant to water, slightly glossy, and more difficult to clean (because of being impervious to water) if used routinely over an extended period of time
– be aware of the quantity of detergent you use, and adjust it for the amount of soil on the clothing and to minimize the soapiness that needs to be rinsed; many laundry detergents are now more concentrated, and suggested usage amounts tend to err on the side of using too much (which, from a marketing standpoint, will require you to buy more product more frequently); and don’t forget, the detergent and laundry products you use ultimately end up in the water supply system for treatment and redistribution, so be mindful and frugal with your usage – try reducing the amount you use until you find the minimal amount needed to do the job

Save big money by being selective about your home laundering methods:
– Remember that any kind of heat-generating equipment or appliances (stoves, ovens, toasters, water heaters, irons, clothes dryers, space heaters, furnaces, electric blankets, hair appliances, etc.) use more energy than almost any other type of energy usage in your house (way more than lighting or electronic devices), so any reduction you can make in your use of heat-generating appliances will result in significant savings
– Save $85-$150 per year in energy by air drying your clothes instead of using a gas or electric dryer
– Save $11-$226* per year in energy by reducing the use of heated water for washing and rinsing

And if you have the option, or are close to replacement of your appliances, keep these potential savings in mind:
– Save $28-$137* per year in water, detergent, and energy by using a front loading washer instead a top loading washer
– Save $12-$30* per year in energy with gas dryer instead of electric

*The figures I’ve cited are ranges derived from outstanding detailed information provided at Michael Bluejay’s site, Saving Electricity, which compares various factors of water and energy usage in the laundry process; it also compares other appliances and energy usage issues. If you appreciate excellent research and want to know specific information about appliances, energy usage costs, and efficiency, I would highly recommend his site. Take that, Stephen Covey and David Allen!)

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Suze Orman’s Expense Sheet

Posted by denisefisher on March 16, 2009

imageThe thing I like about Suze Orman is that she’s practical. Unlike other financial experts who write, blog, or have their own shows, she doesn’t sandwich her advice between disclaimers or discussions that end in the phrase “consult with your financial advisor” (as if having a personal financial advisor were as common as having a family physician). Suze doesn’t talk in vague terms or in general concepts. She tells people exactly what to do, straight out, and provides step-by-step pragmatic advice. It’s specific, understandable, and realistic. And it’s delivered with confidence, competency, and in a way that makes it seem like an obvious, common-sense plan.

Recently, Suze added this expense sheet tool to her website:

http://www.suzeorman.com/2009actionplan/expensesheet/index.html

Use this survey to see the big picture of where your money is going. This is the best pre-formatted expense tool that I’ve seen. It covers a broader list of expense categories than most others, and gives you a view of how your expenses compare with national averages (using numbers from the US Bureau of Labor Statistics). Take the national averages and the side comments with a grain of salt. When I used this tool, I found some comments or suggestions that didn’t quite make sense to me. Keep in mind, this is an automated tool, so there may be some quirky kinks involved. You don’t need a disclaimer to tell you this, do you?

One thing that you may notice, at the end of this exercise, is that your estimate of where your money goes does not equate to the amount of money that comes in. This is a good thing for you to know. It means you are not fully aware of how you’re handling your money. But you can figure out for yourself how to fix this problem. There are plenty of resources for tracking your spending. The key is finding or creating a system that’s best for you. The one that works best is the one that you use.

If you don’t know where to start, try an internet search for various phrases such as expense sheet, track spending, or the like. I’ll also include this link to Wise Bread’s post from early 2009, which lists the Top 100+ Personal Finance Blogs.

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