Taking the time at least once a year to think about your financial and life goals, and how your actions are helping to make those come true, is important. If you know where you are regarding your financial health, you can then make a plan for where you want to be.
By doing nothing, you will never know if you are making progress toward your goals or if you are ever going to be able to retire. Establishing a baseline understanding of your financial health will help you identify areas of improvement and where action needs to occur.
A financial checkup once a year is usually enough, but you might need to have a checkup more than once a year when there has been a significant event in your life, such as a death, birth or marriage.
A financial check should look at two key areas: protection and investments. Are you and your family protected in the case of an unforeseen emergency? This can be through car and home insurance, life insurance, having a will or through establishing an emergency fund. These are all critical items that help ensure that you’ll be okay when ‘life happens.’
Are you setting aside money, whatever amount it might be, on a regular basis? Are you taking advantage of an employer’s retirement savings matching opportunities? If you changed jobs, do you know where your old retirement accounts are?
It is always important to have a good picture of what is going on in your financial life, regardless of your age.
By: Brenda Langdon
