Do You Have the Mind of a Money Accumulator?

• The state of New York currently holds almost $10 billion in unclaimed funds. California and Texas have another $10 billion.
• There's about $16.7 billion in matured, unredeemed U.S. savings bonds in the hands of individuals that is sitting around earning nothing.
• There are hundreds of billions of unclaimed dollars in IRS refunds, retirement, and Social Security checks that went undelivered or not cashed.
• The average individual tax refund last year was about $2,345. That's money folks are going without during the year because they are overpaying the IRS!

This is a problem. Why? Here we are in the midst of one of the greatest recessions of a generation, and many folks still have a lazy attitude about their money. Maybe the boomers really are correctly portrayed as a group of spend-it-now, save-later, up-to-my-eyeballs-in-debt money misfits. But it's also possible that what makes some folks more financially lazy is simply that they need to think about money differently. Here are six things you can do to put your money to more productive use:

1. Don't overpay your taxes all year. Instead adjust your withholding allowances to pay less tax now. Your refund will be smaller, but you'll get more cash flow now -- which can come in handy paying down debt, building up savings, etc.
2. Suspect that you may have a few accounts you've lost track of? Log onto unclaimed.org to start your search for money that might be due you.
3. Close unused bank accounts and consolidate investment accounts this year. Keep better track of what you've invested so you can monitor and make changes as conditions change.
4. Increase your deductibles for your auto and home insurance (to at least $500 and $1000. respectively). Low deductibles are the most expensive insurance -- and most profitable for insurance companies.
5. Replace an expensive cash-value insurance policy with a low-cost term policy that provides more coverage for a lower premium. Direct the savings toward building up your investment portfolio.
6. Make a written plan of all debts and apply your spare cash flow to paying them down. Pay off the highest-rate debts first.

I admit that we still collect returnable bottles and cans at my house, and I pick up a penny on the ground every time I see one. I also collect our loose change in coin wrappers, and when I have a few rolls, I use them to pay for things we buy. But I'm not saying that you have to obsess about money and count every nickel. What I am saying is this: If you want to make forward financial progress, you do need to have the mindset of an accumulator of money and a disposer of debt, not the other way around. Those who did so over the last decade are getting through this recession just fine. Ray Martin

View all articles by Ray Martin on CBS MoneyWatch»
Ray Martin has been a practicing financial advisor since 1986, providing financial guidance and advice to individuals. He has appeared regularly as a contributor on the CBS Early Show, CBS NewsPath, as a columnist on CBS Moneywatch.com and on NBC-TV's morning newscast TODAY. He has also appeared on the Oprah Winfrey Show and is the author of two books.

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