An annual financial review is as important for your finances as a physical is for your health. Whatever your age or income, you should review your financial goals, determine where you are in reaching them, and make any adjustments. This checklist is a great place to start.
1. Evaluate your current financial situation.
Have you made progress toward reaching the goals you set in 2019? Why or why not? Have you experienced any life events - such as a job change, marriage, or new baby - that require you to make adjustments?
Be as honest as possible - don't set yourself up to fail by setting unrealistic goals.
2. Review your loans.
Request a copy of your credit report and correct any errors.
Meet with your personal banker to review the interest rates and terms of your current loans including your mortgage. Is this a good time to consider a refinance or consolidation?
3. Review your insurance coverage.
Take a look at the coverage amount for your homeowners/renters, auto, and life insurance. Is it enough to replace your items? Talk to your agent and review your premiums. Are you eligible for any discounts? Could you save by switching carriers?
4. Take a look at your savings.
Do you have access to an emergency fund? Are you taking full advantage of benefits offered by your employer? (i.e. 401k matching) If you have a HDHP, do you have a Health Savings Account (HSA)?
Talk with your financial planner to ensure you’re investing appropriately to reach your goals.
5. Review your monthly budget.
If you don’t have one, this is the time to put one together. Taking into consideration any changes from your loan and savings evaluations, are you able to pay your bills each month and put some money aside? Do you need to make adjustments like cost-saving measures or reallocating funds?
If you need help with a budget, meet with a personal banker or check out our Financial Wellness blog. There are numerous budgeting options out there - the key is to find the one that works for you.
6. Update your financial goals.
The final piece of your financial review is checking in periodically to see how much progress you’re making. If there’s a goal you can cross off your list, set a new one as you continue to develop your financial plan.
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The views, information, or opinions expressed in this article are solely those of the author and do not necessarily represent the views of Citizens State Bank and its affiliates, and Citizens State Bank is not responsible for and does not verify the accuracy of any information contained in this article or items hyperlinked within. This is for informational purposes and is no way intended to provide legal advice.