I am a fan of lists. I keep lists for everything—to-dos, grocery shopping, gifts, blog post topics, bills. You name it; I probably have a list for it somewhere. In fact, I love lists so much that the other day my 5-year-old comes out of the bathroom and says “Mommy, we’re out of soap. Put it on your list”. It’s so rampant that even my 5-year-old knows about them.
List are necessary
I must have lists. Normally, I have the attention span of a gnat. One minute, I’ll be happily working on a blog post and then I’ll decide that I need to take a look at my Google reader which leads me to another blog which leads me to the news and so on and so on. You know the board game, Candyland? How you can get all the way to the top and then pull a card that puts you back down at the bottom? My brain follows that same type of nonsensical path to get to the end goal of completing whatever task I’ve been distracted from. Lists bring me back to my starting point. They keep me focused and on target.
My lists also highlight where I’m succeeding and where I’m failing. For instance, if I have a to-do list that involves writing, laundry, cooking, grading papers and running errands, I’m will most likely cross off everything except laundry. So my to-do list for the next day will also have laundry. This pattern will probably repeat for about 4 days until I finally get around to the laundry. I will find every excuse not to do laundry. That is an area where I fail. If it were not for my list (and the mountains range of laundry populating my basement), it would be hard for me to realize this is an area of weakness.
The financial lists
I use the same concept for tracking my finances. I use lists to keep me on target and focused. To do so, I maintain separate lists for all different parts of my finances. For instance, when I was in debt, I had a list of my debts. I keep lists of my savings account, including how much is in each account. I keep lists of my bills, and a separate list of which bills get paid on each payday. The amount of lists that I can generate to keep track of my finances is endless.
I also keep a list of the general aspects of my financial life. This list is a little different. Let me try to explain.There are certain things that every financially responsible person should have. To determine if I have those, I ask myself the question “Do I have _______?” Then I have a checklist for the blank. The checklist looks like this:
- A budget
- An emergency fund of 3-6 months’ salary (I prefer salary to expenses)
- My most recent credit report
- Homeowner’s insurance
- Car insurance
- Life insurance
- A will
- Retirement savings
- College savings for my daughter
Having a list of these financial necessities forces me to look at where I’m succeeding and where I’m coming up short. I used this checklist to determine some of my financial goals for 2012 and it also serves as a reminder that I really, really need to get certain things done.
If you’re interested in creating your own financial checklist, I suggest that you start simply. Ask yourself, what should I have in my financial life? Then make a list of those things. Your list doesn’t have to look like mine. You may not have kids or your kids are grown, so college savings won’t be on your list. Maybe you’re planning on having a baby; you could add “baby fund” to your list. Maybe you aren’t as afraid of death as I am so you put “burial plot” on your list. Other items to add could include:
- Pet insurance
- A proper business license
- A financial advisor
- New car savings
Maintaining the lists
I update my lists about every 6 months, or as necessary. It’s important to me to give myself enough time to work on achieving my tasks and goals without giving myself too much time. Too much time means I won’t get them done; too little time means I’ll berate myself for not getting it done sooner. This is not a healthy relationship so when I’m establishing deadlines, I try to find a happy medium.
Not every item needs regular review. For some of the items, once they’re checked off, it’s just a matter or reviewing the policy or document yearly to make sure that they’re still accurate or appropriate (and yes, “reviewing the document” does go on my list).
I typically keep my lists in my all-purpose notebook (cooks have all-purpose flour, I have an all-purpse notebook). I’ve tried to maintain my lists electronically. The only time this worked was when I was tracking my debt repayment because I’m terrible at math. For the rest, there is just something satisfying about putting a checkmark or crossing something off with a pen that isn’t captured when I do it on my phone.
Now that the new year is upon us, it’s a great time to get your finances organized (if they’re not already). Lists are a great tool to help.
What does your list look like?
Comments
Trackbacks
-
[…] distinctively named Daily Money Shot offers an thought of a checklist to assistance get we […]
-
[…] magnificently named Daily Money Shot offers an idea of a checklist to help get you […]
-
[…] for 2012 (even if the world is supposed to end). I started off on a great note, too, with my Financial Checklists post being picked up by The Consumerist and the launch of Bloggers Give Back (more about that next […]
My lists go in my planner and my allpurpose notebook that I keep with my planner, I’m also notorious for putting sticky notes everywhere and writing lists to do on the dry erase board on the fridge. Lists are definitely helpful!
I love sticky notes! I have them all over the place, too. I especially love the kinds with lines–perfect for to-do lists!
Without a list, I don’t know where I’d be!
Michelle @ Making Sense of Cents recently posted…January Goals
Me either! My lists keep me as sane as possible!
I have to have a food list or I can’t go shopping. As for the financial list, yeah I’d rather have one of what I bring in. Pet insurance would be nice here (I got six cats and a dog), and a will and proper business license would help too.
Bill Swan recently posted…Five Ways to Cook Less Garbage
I’m with you, Bill. I don’t have that many pets (2 dogs, 1 cat) so I’m not sure about pet insurance but having a list of where I’m lacking certainly helps to keep me organized.
I am a tried and true list maker! I think I suffer from permanent “mommy brain” since having my daughter, so if I don’t write it down it won’t get done!
Oh, the tragedy of mommy brain. I am definitely a fellow sufferer. I am also in the camp of “if I don’t write it down, it doesn’t happen”.
I am a list maker and I can’t function without one. I make list for every area of my life. It keeps me focused and it brings me joy to cross something off of it.
another housewife recently posted…The Menu Planning Plan
Yes! The joy of crossing something off my list makes me feel so accomplished and successful!
I have to have a list. It’s a very rare day I don’t have a list in progress.
Dr. Dean recently posted…New Years Resolutions: An Alternative!
Same here!
I love making lists too! It keeps me on track and makes me feel like I’m an accomplished adult. I’ve found that I really like putting them on paper too. I used to just make notes or keep them in my head, but as I get older and busier, I HAVE to stay organized.
Carrie – Careful Cents recently posted…Making An “Anti-Resolution” Resolution
I agree with you, Carrie. Lists have become more and more necessary the busier I get. I even have to separate my lists into categories just to keep all of the different tasks in some semblance of order.
I have lists for everything and keep copies on multiple devices. My brain seems to function the same way as yours, it seems. Lists keep me sane.
Marissa @ Thirtsyixmonths recently posted…2012 goals
I like the idea of keeping copies. There have been numerous occasions where I’ve had a list, put it down and magically, it’s gone. I should probably start tracking it electronically as well. Can’t lose Google!
I dont really hand write lists, except for my yearly goals – maybe I should start though, you brought up a lot of good points in this article.
Jeff @ Sustainable Life Blog recently posted…Health Goals 2012
Thanks, Jeff! I find that handwriting lists helps make the more “real”. They become something concrete and tangible rather than abstract. I highly recommend it!
Lists are huge for me. I get probably 20-50% more done per day (or whatever period I’m looking at) if I’m working off a list versus if I just wing it. I made a list of things I wanted to get done over my holiday break, and while I didn’t get everything done (I knew I wouldn’t), I got more accomplished than if I’d not made one.
Good luck with all your goals for 2012. Can’t wait to read about the hits and misses (there always are some, aren’t there? *lol*) but either way I’m wishing you a great year!
Money Beagle recently posted…2012 Financial Goals
I agree! I definitely accomplish more when I have a list versus when I don’t.
Pet Insurance.. I just have a separate savings account that I drop the odd 20$ in every month. Always have enough for vet visits and yes.. my 2 cats have their teeth cleaned which is stressful. But my previous cat lost a tooth because I didn’t do it and it was not something i was willing to fail these kitties on. The funds also replace the rugs destroyed by their claws. My mom wants me to have them declawed.. but rather replace the rugs when clawed to oblivion.
I don’t have formal pet insurance although I probably need to get it soon. I do have a separate pet account for their regular maintenance items and we save for cleanings since they do happen every year. It’s definitely a good idea to have a pet fund just like we have baby funds and vacation fundss.
I love Evernote for lists – it syncs lists on my phone, work computer, and home computer. Next step, trying to share a shopping list with my girlfriend. (Groceries, pet supplies, etc.)
I’ve never heard of Evernote. I’ll have to check it out. Thanks for the suggestion!
A list of list. Never thought about it. Very informative post.
SB @ One Cent At A Time recently posted…5 Steps to Introduce the Concept of Credit to Your Teens
Thank you!
I have a list of bills to pay. That’s pretty much it. I am not a big list user. Sometimes I think it is because I am just lazy to make them up. So I end up with sticky notes all over my desk. Not a nice view. 🙂
Aloysa @ My Broken Coin recently posted…Would You Date a Guy From a Trailer Park?
There’s nothing wrong with sticky notes! I use those, too! Whatever you need to use to keep you organized is just fine!
I live and die by the checklist. You should see my financial tracking spreadsheet. Looks like something from A Beautiful Mind.
John @ Married With Debt recently posted…Sell My Car to Fund an Emergency?
It is true, we need to organize anything that we do in order to get optimal results. In the case of financial lists, making a monthly budget for our family spendings could be a good idea to find out what is wrong with our expenses and for finding ways to save money. For this purpose, I regularly use a website known as Calendarbudget ( http://www.calendarbudget.com ) that helps to record our day to day expenses and acts as a guide to determine whether or not you can afford your next and future purchases.
Lists are just essential as we get older and forget stuff. I now use my phone for my to do list. On your list that has your will, as an estates attorney I would add that you also need a durable power of attorney if you were to get disabled and an advanced medical directive if you have an irretrievable medical event. Also, if you have children or special situations or estate tax issues, a trust should be part of your estate plan.