Adding an annual financial checkup to your money management habits will help you prepare for upcoming events.
You may visit your doctor once a year to make sure all is well, but there is something else to pencil in on the calendar: an annual financial checkup.
If you were building a house, you would stop occasionally and look at the blueprint to see if you were on the right track. An annual financial checkup serves the same purpose. Most experts suggest conducting a regular personal financial checkup yearly or after a significant life event (such as marriage or divorce). It is essential to follow a system when reviewing your finances to ensure you don’t leave anything out or miss something critical to your financial well-being.
One needs to look no further than their money management habits and how they affect how secure they feel in making financial decisions under adverse circumstances.
Here are the main topics you should cover when conducting an annual financial checkup.
The Bottom Line - When you are finished with your financial checkup, you may want to consult one or more experts. Consulting a trusted financial advisor or other specialists (estate planner, insurance agent, tax advisor) to make sure you haven’t left out anything important. Make a written note of all changes you have decided to make as a result of your checkup and put in place a plan to make those changes as soon as possible. Then, relax until it is time to do it all again next year.