We all have a financial plan and the best ones are written

Have you ever thought about the amazing power that a checklist possesses? It is a simple list that can provide the possessor with immediate success, if utilized. Just ask the business person missing their notes on a trip, a hostess in the kitchen missing the main ingredient for the night’s meal or anyone who forgot to complete an important task before the big event. If only they had utilized a checklist.

When it comes to your financial outlook you too must have a checklist. There are many steps in your financial freedom that you don’t want to forget. Doing so can cause you undue setback with regards to obtaining your financial goals. In this article I’ve taken the time to provide four not to forget. Just call it your 4C Personal Finance Checklist.

1. Create or Update the Budget: We all have a budget it’s either written or unwritten. The difference in financial success is that it must be in written form. Today to assist us with this often dreaded task are free budget websites and tools for budget creation task like JGnash found at http://SourceForge.net/projects/jgnash. JGnash is a free open source program that has been used by thousands since 2005.

2. Create or Update your Will: This is a big one that many people fail to complete. Even if a Will was done in the past it needs to be reviewed against your current financial situation to ensure it is still accurate. Remember passing without a Will allows the State to call all the shots for your estate by determining who gets your assets and they will retain a good portion of your wealth.

3. Complete an Insurance Review: This is one area where you can discover hidden savings on car, life and home policies with a little effort. One suggestion is not to allow an insurance provider to pull your credit unless they can provide you with a reasonable quote and you are fairly certain that you will go with their company. Too many credit inquiries can hurt your credit score.

4. Check your Credit: Once a year the US government allows you to obtain a FREE copy of your credit reports from the big three credit reporting agencies of Experian, Trans Union and Equifax. Take advantage of this opportunity to review what your credit reports say about you. They are not always correct. Take steps to remove or update incorrect information, which can potentially increase your overall credit scores. You can obtain your free copy at www.AnnualCreditReport.com.

Your 4C Personal Finance Checklist will provide you with immediate steps to take for financial success for today and tomorrow. As with any checklist you must be careful to record your completed tasks for the best success. Also note that all these steps should be repeated at least once a year, except for your budget, which should be adjusted more frequently as needed. We will look to share other checklist items in future articles.

Have you ever wondered what financially successful people do that’s different from the average Joe? We probably have all heard the dismal statics that tell us most people are one paycheck away from bankruptcy. The mistake that many people make is thinking:

1. It’ll never happen to me!

2. They must have had a lot of credit card debt.

3. Bankrupt people are lazy…..etc.

Let me challenge you that in many cases that is probably not the case. In fact, you may be surprised to know that medical bills are more likely to topple someone into bankruptcy than a credit card. For some that may be hard to believe. Many times because they choose to believe the ‘hype’ the media spins on debt and credit cards.

At last, let me provide you with real and usable financial information that’s personal ‘for the rest of us’. You know, the ones who are open to hearing new truths about personal finance, struggling with debt, or just trying to start again including recovery from bankruptcy. I’m speaking from experience, because almost 5 years ago I was bankrupt. Noticed I said I was?

Zoom forward to today, still almost 5 years, I’ve recovered from bankruptcy! Making a nice income, owning a newly built home and enjoying the privileges that having credit brings. So you may be wondering: “Why would I tell you that I was once bankrupt?” The answer may surprise you. We’ll get to that in my next post.

In the meantime, if you have a personal finance question feel free to send it me. Most times, I’ll send your answer straight away and it may be posted in my monthly column ‘Ask Yvon’ (pronounced ‘Yuh von’…I know it’s my parents fault), which you can find in print and also online at www.thetruthtoledo.com. I’ll also be posting articles, Q&A, and insights here as well from time to time. I've just happened to learn what works and what doesn't through this journey...and I share.

For now just know that I have a vested interest in your success on the road called financial stability...let's do it together!