Take a "get it done" day to complete financial tasks

Financial "chores" seem to fall farther down the to-do list than traditional chores. Yet neglecting our financial responsibilities can have more severe — and costly — consequences than can putting off things like yard work and laundry.

To avoid falling behind, and possibly even missing out on numerous opportunities to improve your household's bottom line, consider taking a personal "get it done" day to clean out your financial closet. Here are a few tasks to consider:

Find money-saving opportunities

For your get it done day to be a bottom-line success, concentrate on the tasks most likely to save you money or boost your income. For example:

• Cancel unused credit accounts that charge fees. In today’s challenging economic environment, it’s wise to maintain your credit sources. But it’s also important to stop paying for credit you’re not using. If you’re paying an annual fee on a credit card or other account you’re not using, close the account. But first take the time to review the terms and conditions, including the fee policy. Also, make sure you cash in any rewards points you may have earned before you cancel the account.
• Make sure any balances you carry are on low-rate cards. If you carry a balance on one or more of your credit accounts, make sure you’re taking advantage of the lowest possible interest rates. For example, transfer a high-rate balance to one of your lower-rate accounts, provided you will still come out ahead after any related balance-transfer fees. If you plan to pay off your balance relatively quickly, look for short-term financing options with little or no interest charges. Likewise, if you expect to have the balance for a while, find the best longer-term solution. If none of these options is available, try to negotiate with your credit card company for a lower rate on your existing balance.
• Start the process to refinance your mortgage. If you're still holding a high-rate mortgage and plan to stay in your home for a while, it’s time to refinance. Today's mortgage rates are among the lowest in years, making refinancing a smart strategy for many homeowners. To get started, talk to your financial advisor. Then collect these documents on your get it done day:
• Tax returns for the last two years
• W2 forms for the last two years
• Bank statements for the last two months
• Most recent month’s paystubs
• Most recent mortgage statement
• Copy of your current homeowner’s insurance

• Confirm your federal and state income tax withholdings are correct. If you typically receive a hefty refund check every year from the IRS, it may be time to adjust your federal withholding and hang onto more of your salary. Having too much money withheld from your paycheck for income taxes allows the federal (or state) government to use your money — for free.

  Whenever you experience a major life event, such as marriage, divorce or the birth or adoption of a child, you may have to change the number of personal allowances (for federal purposes) you claim on your W-4 form. Talk to your human resources administrator as well as your tax advisor. For more information, visit irs.gov.

• Gather quotes from competing insurance companies. When it comes to insurance coverage, it’s easy to get stuck on autopilot, simply paying the regular premiums whenever your current policy renews. But getting competing quotes on an annual basis may offer opportunities to reduce your insurance costs or give you leverage with your current insurer. At the same time, it’s important to review your policy to make sure you’re not paying for unnecessary coverage and to ensure you have all the protection you need.

• Negotiate better deals with your service providers. Paying for phone, internet and television services can also become routine. But in today’s competitive marketplace, service providers are more willing than ever to strike a deal with their current and prospective customers.

  It pays to do some research. For example, if a phone or cable service just mailed you a great offer, take time on your get it done day to look into it. If you decide not to change service, at least use the offer as ammunition with your existing provider to get a better deal on your current service.

Still have some time left? Tie up these loose ends

Indeed, saving money is an important objective on your get it done day. But chances are you’ve also been avoiding a variety of administrative tasks. Tending to these responsibilities will put you in better shape to handle financial emergencies and streamline your recordkeeping. Specifically, you should:

• Examine and verify your credit report. Your credit report can influence everything from your mortgage rate to a prospective employer’s decision to hire you. Unfortunately, most of us don’t uncover problems or inaccuracies in our credit reports until it’s too late. That’s why it’s important to review your credit report at least once a year.

  You may obtain a free copy of your credit report from each of the three credit reporting agencies (Experian, TransUnion and Equifax) once a year at annualcreditreport.com. In addition, you may purchase more detailed reports that include your credit score from any of the reporting agencies. If you find any errors on your credit report, you should immediately send a written explanation and correction to all three agencies.

• Make sure your beneficiary designations reflect your wishes. It’s important to keep your beneficiary designations up-to-date on your bank, investment and insurance accounts. That way, if anything happens to you, your assets will be distributed according to your wishes. This is especially important if you’ve experienced major life changes, such as marriage, divorce or the birth of a child.
• Eliminate junk mail. A mound of junk mail sitting in your mailbox isn’t only annoying, but it also poses a threat to your identity. You can eliminate a large portion of such mail by visiting the Direct Marketing Association’s website (dmachoice.org) to remove your name from its national mailing list. You also can remove your name from catalog mailing lists at no charge by visiting catalogchoice.org.
• Consolidate your key financial data. Whether you prefer an old-fashioned file folder, a multipurpose shoebox, a flash drive or an encrypted file on your hard drive, it’s important to consolidate your key financial data in an easy-to-access location. This is where you’ll store all of your important financial information, including account names and numbers, beneficiary designations, service providers, phone numbers and passwords.

All in a day’s work

Tackling your financial to-do list is possible — especially if you dedicate time to the cause. In just one day away from the office, you can eliminate a number of tasks and possibly discover a few ways to make or save money. And you’ll enjoy the feeling of accomplishment when you get it done. Not bad for a day’s work.