A financial check-up is as important as a health check-up. It is especially important to review your finance after major life events, such as marriage or a move-out. Here are several points to put in your financial check-up list to help you from missing something critical in your financial well-being!
Check for recent major life changes
Whether it’s a job change, marriage, a new family member, or any other big changes may affect your financial plan a lot. These major changes definitely take a lot of your savings and require you to change how you manage your money. Review changes that will happen to you in at least the next year when you do your financial check-up.
Review your financial goals
Simply defined as targets with a specific time plan to reach by Investopedia, financial goals are a must include in your financial check-up list. While doing your check-up, you might need to tweak a little with your goals such as retirement fund, emergency fund, or down-payment for a house or a car. Evaluate your progress, adjust if it’s needed. Don’t forget to tick off achieved goals!
Reviewing budgets on a financial check-up
A budget is needed to balance your income with your monthly expenses. Ideally, the budget should be reviewed monthly. On setting a budget, make sure your income can cover your expenses and savings for financial goals.
Regular debt check-up: a must for a financial check-up
Pay attention to all your debt, both loans and credit cards. How much do you owe the credit card company? How much is the monthly installment for your loans, and when will your loan be finally paid off? Control your spending using credit cards. You don’t want your debt to weigh your financial plan.
Maintaining a good credit report and score reputation
A credit report, as explained by Investopedia, is an individual’s detailed credit history made by credit bureaus. Credit bureaus make it by collecting financial information from the individuals. Lenders use borrowers’ credit records along with credit score, or FICO score, to assess credit risk and determine whether to extend their credit or not. Check on your credit report regularly, and notify any errors to keep your record positive.
There are more points to check on your regular financial check-up list. Though it sounds like a much hassle, you will not regret having all of the lists when checking up your financial plan!
