What’s in Your Financial Junk Drawer?

You wouldn’t ignore a junk drawer spilling over in your kitchen - so why let your finances collect clutter? In this short video, Shane Tenny, CFP®, explains how many high earners end up with a “financial junk drawer” full of accounts, insurance policies, old statements, and scattered decisions. Watch to learn how organizing your financial life can lead to more clarity, confidence, and control.

Transcript:

[00:00:09.12] Hi, everyone. Shane Tenny here, managing partner at Spaugh Dameron Tenny. And today, I want to talk with you about the proverbial financial junk drawer.

[00:00:18.11] Do you have one of those drawers in your kitchen that's full of paper clips and extra pens and a random business card and maybe even an unmatched sock? It's basically the junk drawer, right? When you find something laying around and don't know where else to put it, it goes in that drawer.

[00:00:34.25] Well, we found over the years in our financial planning practice that our financial lives can often look the same way. In our practice, we often meet people who've had really good intentions and wanted to make smart decisions, and so they've opened accounts to save for the future. They've opened credit cards to transfer balances and accrue points. They've bought different kinds of insurance But they've never really had any overarching plan. And so they just accumulate different products or policies or accounts with no real concept of how they're going to work together to move towards their goals. Does this sound familiar? If you're in a situation like this, what do you do to bring some organization and begin assembling the pieces into a plan?

[00:01:26.06] Well, I've got three ideas today. And the first step is not to open the drawer and dump all the contents on the ground, and start trying to sort it out. The first step is actually to set aside some time to think. To think about what is important to you, either with your spouse or with your significant other, or by yourself. In fact, I've recorded an entirely different video on setting goals and thinking about what's important to you. You may want to pause and watch that one first, but find some time to sit and write down your goals. Have you ever done this before? Because now would be a great time. Where do you hope to be financially in two years? Where do you hope to be in 10 years? Maybe ask yourself these questions. If I could learn anything about finances and money, I'd really like to better understand, fill in the blank. This is a really important step. Gaining clarity around your goals is always beneficial.

[00:02:28.16] And only after you've done that, then step two becomes viable. This is inventorying your financial stuff. Now it's time to open the drawer, so to speak. So get out a piece of paper and a pen and start by making a list of everything you own. Everything. House, car, savings account, retirement accounts. Don't forget insurance policies you might own, life insurance, disability insurance. Everything.

[00:02:59.23] Then, on another piece of paper, make a list of everything you owe. All the debts, student loans, mortgage, car loans. If you owe money to family, you can put that on there as well. These two lists together will help you see clearly what you've accumulated and what you're working with.

[00:03:19.10] Then, finally, step three is to compare the goals from the first step and the questions you've written down with the information you've compiled in the second step. Often, just looking at these two lists in close proximity can really help you see where changes might be helpful. Sometimes you'll need more of something, like monthly income or an emergency fund or insurance to protect your family. Sometimes you might need less of something to meet your goals, like debt or less money just sitting around doing nothing. Of course, if you're now looking at the list of your goals and questions and the inventory from what you own and owe in your financial junk drawer, and you don't know what to do, it might be time to call in some help.

[00:04:08.23] This is what financial planners do for a living. We help align your decisions with your goals to help you get on track for the future you want. If you're not sure who to turn to, I'd humbly submit the good folks at our firm, Spaugh Dameron Tenny, might be just the right ticket for you. You can simply drop us, and we'll be happy to answer any questions you have and see if we can be of help with your financial junk drawer. I look forward to seeing you back here soon.