I was never proactive about car maintenance.  My car started and always delivered me where I needed to be. I knew I should be checking the oil and tire pressure, and getting regular tune-ups, but couldn't be bothered with all those details. The car was running and my time was precious. "I'll check the oil the next time," was my mantra.

Then one day I heard the loud bang of a flat while traveling on Interstate 5.   How many times had I sped by a stranded motorist with a flat tire and thought, "I'm glad I'm not her!" Swiveling my head, I tried to spot the hapless driver with the defective car.  When I finally realized that the source of the noise was my own vehicle, I thought, "This can't be happening to me! I pay my insurance! I don't have time for this nonsense! Yikes, what do I do now?"

With my infinite wisdom still intact, I drove on the rim to the nearest exit and got in touch with AAA, which saved the day. I didn't even know how to get the spare tire out of the car!  As I waited by the side of the road, I began to see similarities between my ill-timed flat and a financial plan with major holes. It's amazing how creativity kicks in when you're sitting on a cold concrete curb.

Let's relive my dilemma, replacing my bald tire with financial neglect.
I was never proactive about money management. My paycheck always covered my bills and expenses.  Yes, I knew I should be doing certain things: investing monthly in my 401(k), putting to work loose cash, budgeting monthly, reviewing my insurance needs. But I really couldn't be bothered. The bills got paid and, besides, there just wasn't enough time. I'd sit down with my statements and review my goals when I had a spare moment.

How many times had I seen the results of haphazard money management?

Then one unfortunate day, I injured my back at work. I couldn't believe this was happening to me. My disability insurance had a three month waiting period.  Why didn't anybody tell me?  Luckily, when my cash reserves were depleted I was able to borrow from my parents. Then I learned that my disability paid only sixty percent of my salary!

A Little Maintenance Goes a Long Way
The second situation, though hypothetical, reflects the thought processes of many people when it comes to money management.  Few of us look forward to sitting down and hammering out an insurance strategy or estate plan.  Why do it today when we can put it off until tomorrow? There is a tomorrow, right? Unfortunately, many of us pay a heavy price for such lackadaisical thinking.  Whether we like it or not, every stage of life requires strategic money management. Buying our first home, putting our children through college, retiring and planning our estate are just some of the highlights.   The financial issues we choose to ignore will come back to haunt us. Yes, financial planning takes time. But time well spent today makes dreams-come-true tomorrow.

Don't wait until your wheel of fortune goes flat. Take care of your finances now to ensure that you won't be stranded later on down the road.  After my car experience, I signed up for a car maintenance class and learned how to change a tire. It's not that hard and doesn't take as much time as I thought. Most importantly, I feel good about myself and confident when I drive.

Take time each week to review your budget. Sit down every month (with your spouse, if you're married) and review your goals and objectives.  Ask a financial advisor to help you figure out the complicated road map called your "financial plan."  Soon you'll be cruising down the road to financial success.

Your Financial Plan: Sputtering to Cruising
Score Yourself
Read each statement and rate yourself on a scale of 1-10, from (1) "not even in my dreams" to (10) "describes me perfectly."

1) I have a written will and keep it updated.

2) I am contributing to my company's retirement plan and know exactly where the money is going, e.g., growth mutual fund, money market fund, etc.

3) I have designated beneficiaries for my retirement accounts and insurance policies.  I know who they are and so do they.

4) I have adequate insurance to cover me and my belongings.

5) My short-, medium-, and long-term financial goals are written down and posted where I can see them daily.

6) My financial records are organized. I have itemized them on a single list, which I keep in a safe place. My family knows where the list and the records are located.

7) I have calculated my personal net worth within the last 12 months.

8) I know how much income I will need at retirement.

9) I maintain a working budget.

10) I have submitted a request for an earnings/benefits statement forecasting my social security benefits at retirement.

0-35 You may be sputtering along right now, but if your financial wheel goes flat, you'll be totaled. Pull over and take the time to talk to a financial advisor, or take a financial class with a friend.  Then sit down and develop a budget. Start slowly and vow to conquer one financial obstacle a month. You'll soon be in the fast lane!

35-75 You've tackled some financial issues head-on. However, even if you can check stock quotes and have a retirement plan, a major financial blow-out could send you straight to the junkyard. Continue to evaluate your family's risk-management needs. Is your insurance adequate to cover you in an emergency? Regular financial tune-ups will keep you on track!

75 -100 You've mastered financial mechanics and taken the time to get your hands dirty. By retirement, you'll be running on all cylinders. Remember to keep track of your net worth for estate-planning purposes. Continue to evaluate your goals and make sure your money is properly allocated.