Until the mid-nineteen nineties, financial information wasn’t widely available to the average person. Instead, it was limited to industry professionals and distributed to the public by a handful of publications and media outlets. Financial professionals were the only means available to access financial advice and to obtain financial products.
Today, it’s safe to say that things have changed. Some for the better, some for the worse. Today’s consumer suffers from the opposite problem. Because you can search for virtually anything on the internet (and you do) and can engage in transactions like investing money, buying insurance, or creating a Will from the convenience of your phone, many of us experience the paralyzing effects of “information overload.”
With this, many of us tend to lack the basic ability to apply what is found to our lives in an effective and meaningful way. You’re, rightfully so, busy living your life and don’t have time to become experts in all that information you’re searching for.
You try your best to make good, educated choices using what’s available but ultimately, decision fatigue sets in, and procrastination sets in. We’ve been there too. This likely leaves you feeling overwhelmed. But that decision you haven’t made yet is, in fact, a decision.
A decision to not prioritize your financial wellness.
Accumulation of Financial Items In Your Junk Drawer
Over the past several decades things have only become more complex and will continue to. Some of these complexities are due in part to changes in technology, benefits offered by employers, higher education, the need to engage in retirement planning, and the healthcare system.
Think about it; you spend money on things today that didn’t exist just a few years ago, and now seemingly can’t live without them.
To add to the situation, consumers tend to accumulate a lot of financial junk (if you will) over time. Consider all the different financial accounts that you may have:
- One or more checking accounts
- A savings account of some sort
- Retirement accounts with a current or former employer, and
- Investment account(s) someplace else
Better yet, if you are married, double all of that because odds are your spouse or partner has a bunch of the same stuff, and chances are it didn’t all get combined when you got married. It’s possible you have a few joint accounts as well:
- Health insurance through one or both of your jobs
- Homeowners or renter’s insurance
- Car insurance, and
- Life or disability insurance
If you’re like most people, you have credit cards, student loans, mortgages, car payments, and if there are kids involved, maybe even a college savings plan or two.
Woah.
It gets complicated. And overwhelming.
You have accumulated each of these slowly over time out of necessity, and each plays a specific role in your financial life.
But it gets harder to keep track of everything over time as you get increasingly busier living your life. All of your “money stuff” gets jumbled up into a giant swirl of confusion.
Just like the junk drawer in your kitchen. Yes, we have one too. This drawer attracts more and more stuff as time goes by until you suddenly reach a point where you can barely close it. There are three distinct problems with the junk drawer:
What’s The Problem With Disorganization Of Your Finances?
The disorganization of your finances is pretty similar to that junk drawer in your house.
#1 You don’t really know what’s in it
If you’re like most people then you’ve probably gone to the store to buy something only to discover later that it was in the junk drawer all along. Happens all. the. time. Paper clips, postage stamps, those little sticky things that you use to hang stuff on the wall, and whatever THAT thing is – you end up spending money unnecessarily to buy things we already have because stuff is hidden away in the junk drawer.
#2 It’s a hot mess
If you don’t know what’s in the drawer, then you surely can’t get the best use out of its contents or space. Last time you opened a wine bottle, did you use the electric opener that lives in your junk drawer? Did you remember that there were batteries in there when you needed some? Is there a better use for the entire drawer itself? (Probably.)
#3 Disorganization is overwhelming
How many times have you thought about organizing your drawer only to open it, look at the mess, get overwhelmed and think “not today” while closing the drawer. (Even though tomorrow you’ll open the drawer and think the same sentiments). Out of sight, out of mind. Right?
You get the idea. Most of us tend to approach our finances in much the same way. A lack of organization around the many moving parts in your financial life, all competing for our immediate attention, prevents you from getting the best use out of any of them.
What’s worse is that it may even cause us to make mistakes by looking at each thing separately rather than as a part of a comprehensive financial toolbox. Add in a dose of information overload, and you get overwhelmed to a point that you fail to take action towards your goals.
Committing to becoming financially organized is a critical first step. It’s only when you know what you’re working with and can see everything together in one place as elements of a complete strategy that you are able to begin to make any real progress.
Organize Your Personal Finances For Better Planning
With the right strategy for YOU, you can begin to make real progress on organizing that financial junk drawer for once and all.
At Consolidated Planning, this strategy will be pieced together with your very own Living Balance Sheet®. From your assets to liabilities, cash flow and more, addressing your finances gets a little less daunting.
If you’re ready to go through that drawer, spend some time with a financial professional at Consolidated Planning to optimize your planning.
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Exp. 10/2026
Guardian, its subsidiaries, agents and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. The information provided is based on our general understanding of the subject matter discussed and is for informational purposes only.
This material contains the current opinions of James M. Matthews and Consolidated Planning only. These are not the opinions of Park Avenue Securities, Guardian, or its subsidiaries.
