Determining Your “Next Action” with Your Personal Finances

A problem I think many people have, and I know I do, is determining what to do next to take care of or improve your personal finances. If you are trying to get out of debt, increase how much you are saving, and spend less, it can be overwhelming to think about all of the things you need to do to get your financial life in order, and sometimes it can be hard to remember and keep up with all of the things you want to do, as well as all of the things that have to be done. Just like in David Allen’s Getting Things Done, I like to make a list of my next actions w/ my personal finances. I either leave it on my desk at home, or write it in the notebook I carry around, or both.

Here is a typical list from several months ago:

Review 401k asset allocation
Automate 529 account-set up electronic withdrawals
Set up separate online savings account for irregular expenses
Cancel gym membership
Pay all bills as soon as they come in -(recurring)
Make weekly payments on credit card-(recurring)
Plan next week’s menu-(recurring)

I like to prioritize, and place recurring items on the list at the bottom, which I may forget or put off if I don’t put them on the list. I try to do all of my recurring items on Friday (for example to plan next week’s menu so I can do any shopping over the weekend) so I get everything done before the weekend. Automating your finances can also decrease the number of things you need to remember on a weekly or monthly basis as well.