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Financial Tip of the Month
August: Financial Tip of the Month
August is usually when people enjoy well-deserved vacations and time away from school and work. Many look forward to this month as a time to relax and recharge before returning to their usual September schedules.
Taking time off from one’s regular routine is good for physical, mental, and emotional health. But in regard to your finances and credit, staying vigilant and informed is crucial throughout the year.
Check your credit reports
To help you monitor your financial information at the 3 credit reporting agencies (Equifax, TransUnion, and Experian), consider going to AnnualCreditReport.com to request one free credit report from each credit reporting agency.
Consider a credit freeze
You can obtain free credit freezes at all 3 reporting agencies. Credit or security freezes prevent new accounts from being opened without your permission.
Fraud alerts to prevent identity theft
You may also want to add a fraud alert at no charge to your credit account to ensure lenders verify your identity and prevent identity theft.
Peace of mind
Knowing that you have taken the necessary precautions to protect your credit can go a long way to having peace of mind with your finances.
Once you’ve checked your credit and made sure your finances are in order, it’s time to sit back and relax! You’ve got a month of summer left to enjoy, and you can do so knowing that you have taken the necessary precautions to protect your credit health.
Annual Financial Calendar
Daily money managers are adept at keeping track of clients’ financial obligations using a variety of methods. One such method frequently used to stay organized and make payments on time is a financial calendar. A financial calendar is a simple system for keeping track of financial obligations throughout the year or for a chosen period of time, in much the same way as people remember birthdays, anniversaries, and appointments.
For those who utilize technology, here are some options available:
- Reminders automatically generated using financial software like Quicken or Microsoft Money.
- Spreadsheets that can be sorted by payee, payment due date, or other criteria.
- Reminders created using apps for electronic devices.
- Reminders established with payees. For example, some insurance companies will send emails to policyholders a few weeks before premiums are due.
A Financial calendar does not have to be high-tech to be effective. It can be as simple as a ‘list’ of financial obligations that you review regularly, or a paper calendar with payments due and funds to be received recorded in different ink colors to make them easier to spot.
Financial calendars are also useful for documenting other financial information such as IRA required minimum distribution (RMD) deadline dates. For those living on a fixed income, tracking receipt of dividends and other distributions is useful for creating accurate cash flow projections.
It is important that the system you use is one that you can maintain.
You can create a perfect financial calendar, but you will only be successful if you use it. For those who struggle with keeping track of bills, or lack the time to handle personal financial affairs, you may want to consider hiring a daily money manager to manage your financial calendar. This will ensure that all of your bills are paid on time every month.
AADMM’s Public Awareness Committee has created a Financial Calendar Series. Each month, financial events and reminders will be added. Watch for updates on AADMM’s Facebook page.