Leaving Your Financial Laundry in the Washer Overnight

Last week, I came home after a long day, started a load of laundry before dinner, and promptly forgot about it. The next morning, I opened the washer to find damp clothes clumped together, smelling faintly ‘off.’ It was not catastrophic: nothing was ruined, but it was annoying. Moreover, it nagged at me until I finally found time to rewash the clothes and transfer them to the dryer.

As I sat down to write this weekend, I remembered my washing snafu and started thinking about the financial equivalents of leaving laundry in the machine overnight. It is quite common to hear of a good start being made on the adoption of effective financial habits, only to be followed by a lack of attention or even total inaction.

Consider the example of cash that has been parked in a savings account for months, or even years, with little thought beyond “it’s safe there.” Saving is good, as it is having money in a safe place. However, those savings are likely not working as hard as they could. Another example is an ‘abandoned’ 401(k) account from a previous job that has not been consolidated and has been left for years without being rebalanced. The money is still there, and it might be earning something, but it could also be quietly creating mental clutter and complexity when, with some attention, it could be managed in context with the full portfolio.

You might also have trusts, LLCs, wills, or other estate planning structures and documents that, while set up with clear intentions, now need updates to account for changes in circumstances. There is not necessarily any harm being done, yet estate planning requires attention and decisions that too often get postponed. Leaving them to ‘sit’ is like leaving a load of laundry damp: you know it needs addressing, but inertia or just plain forgetfulness sometimes wins.

Even portfolios can fall into this category. Perhaps allocations were chosen years ago, based on a risk profile or financial situation that has since changed. Or maybe there was cash raised ahead of a potential opportunity that never materialized. The cash investments may be doing fine, but the assets are not optimized for the present state.

None of these situations are emergencies, and that’s precisely why they linger. Like laundry left overnight, the cost is subtle: a little stress, a little lost opportunity, a mild sense of nagging incompleteness. The fix is simple but requires acknowledgment, review, and adjustments to move things forward. A few minutes spent addressing these financial “damp clothes” can restore order, clarity, and a small but meaningful boost to your financial efficiency and peace of mind.

So, the next time you’re putting off small but persistent financial tasks, remember to discuss the financial laundry in your washer with your advisor. Taking action now prevents lingering frustration later, and in finance, as in laundry, a little attention can go a long way.

Corey Erdoes