STARTING OUT
FINANCIAL ADVICE FOR YOUR 20s & 30s
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1. Swap financial chores with your partner for a month or two. If she pays household bills and he manages investments, the cross-training will help ensure that both of you are fully acquainted with all the details of your financial picture. And each of you may come away with more appreciation for the chores the other does routinely.
2. Linger over a quiet dinner and muse about your next ten to 30 years together. Talk about seeing the kids off to college, the cars you'd like to drive, the seas you'd like to sail someday. The number crunchers would call this an exercise in setting goals, but you can call it dreaming about your future.
3. Automate bill-paying as much as you can. To learn more about online bill-paying and to find a good deal, see "Pay Your Bills Online."
4. Cash in your coin jar. If your bank won't take unsorted coins, dump 'em into a Coinstar machine at the grocery store (visit Coinstar.com, or call 800-928-2274 to find one nearby). Coinstar keeps 9 cents on the dollar, but, hey, that change sitting on your dresser is doing you no good, anyway.
5. Review overlap in your mutual fund investments, including those in your 401(k) accounts. If three or four of your mutual funds are actually invested in the same few stocks or sectors, your portfolio isn't nearly as diversified as you might think. To get a free look at where you stand, check the portfolio "instant x-ray" feature at Morningstar.com. For a deeper analysis, try software from Overlap Inc. (800-683-7527; Overlap.com).
6. Inventory everything you own. Then take photos or a video of everything you can (jewelry, furniture, electronics, teacups and chainsaws) and record account numbers for those you can't (investment accounts, insurance policies, employee benefits and those stock options that might someday be worth something again). Store the list in a safe place away from your home, but where you could get to it easily if there were a fire or other misfortune.
7. Grab a copy of your credit report. For $9 you can get a copy from Equifax, one of the major credit bureaus, either through the mail or on your computer screen (contact 800-865-1111, or go to Equifax.com). Correct any errors you spot, then trim the dead wood by asking creditors to close lines of credit you're not using.
8. Audit pocket money for a month to take stock of where that walking-around cash goes -- even if you don't choose to share the gory details with your spouse.
9. Look for ways to cut $25 or so from your monthly budget, just for the heck of it. Switching to a different cell-phone plan or auto-insurance policy could do the trick painlessly, and you can always put that money to better use. Perhaps you might . . .
10. Donate money (or time) to a charity that you have never supported before. In a refreshing throwback to the old days, you might even give to a charity you seek out, instead of one that finds you first.
