The Index Card: Why Personal Finance Doesn't Have to Be Complicated

by Helaine Olen

Take all monthly bills and give them a good inspection. It’s unlikely you can eliminate your cell phone bill, but does it really need to be that high? You’ll likely notice fees and charges you don’t understand. Ask someone to explain them to you. It’s almost certain that either you are paying for things you don’t need or you can negotiate for a lower monthly charge. Do you really need to rent that cable modem? (No.) Can’t you live with a higher deductible on your home or auto insurance? (Almost certainly.) Scrutinize every line item on that monthly credit card bill. Harold found one exercise to be very useful. Imagine that someone stole your credit card and you had to cancel it. When your new card arrives, would you re-up for every magazine, iPhone app, or whatever else you’re automatically paying for right now? When Harold performed this exercise, he discovered many accumulated items. Some had festered for years, including the $10 monthly charge for a wireless hot-spot service he never used, its password long forgotten. An annoying ninety minutes on hold later, and he was free. Make the time to better plan meals. Something worth remembering: According to the market research firm Natural Resources Defense Council, the average American family of four throws out between $1,365 and $2,275 worth of food annually. (Helaine would like it noted she wrote this sentence on a day when she tossed six strips of uncooked bacon found in a sandwich bag and an open but barely eaten packag...