Once a year, you take your children for a physical, even if they are not sick. You take your car to the shop for an annual tune-up, as well. You are careful with your family and your major assets. So, why do you not take the same care with your money?
Every individual should schedule some time each year to undergo an annual financial check-up. The exam should be rather painless, and it may save you a bundle of money.
The items to review may include:
Check for Accuracy
You may want to schedule some time with your financial institution to determine whether all your information is up-to-date, and to make sure you are utilizing the services they have available. Many institutions have implemented some high-tech, convenient enhancements. It pays to check out the latest and greatest services.
Are You Properly Covered?
As your life and circumstances change, your insurance needs change, as well. When was the last time you had a conversation with your insurance agent about your coverages? You may be eligible for some new discounts. Is your coverage adequate to protect your family and your assets? You may be able to reduce deductibles and save some money.
How do Your Mortgage Rates Stack Up?
What is your current mortgage rate? When was the last time you examined the mortgage rate marketplace? Refinancing may be a viable way to reduce your mortgage payments.
Time to Trim Expenses?
Have your expenses grown lately? Been hit with some unexpected bills? Is it more difficult to make it to the next payday? You may need to do some serious belt-tightening to get you through the challenging financial times. Create a budget. Slice unnecessary costs. Look into a handy budgeting program such as AltaOne's BudgetPro. These tools may save your bacon and help you to save for short- and long-term goals.
Dust off Your Retirement Portfolio
Many folks have college funds and retirement plans such as an IRA or a 401(k). But, many times the money goes into the fund and the individual spends very little time investigating ways to enhance those earnings. A call to your financial advisor may open your eyes to some exciting new ways to invest.
Once you have completed your annual financial check-up, you should ask yourself the following questions to help grade the performance of your finances:
- This past year, have my checking/savings balances grown or shrunk? If it has grown, maybe you can slice off a little more for your 401(k) or plop some money into a CD.
- Are my credit card balances higher or lower than last year? A spike in your credit card balances may be a sign that you need to apply the brakes with your spending.
- How liquid am I? If you need money immediately, can you access enough to take care of certain emergencies?
- Is my retirement plan on target? If you do not see enough growth, you may want to look into a different investment strategy.
Diligent financial check-ups will lead to improved fiscal health.
Remember, you will want to enlist the help of the specialists at your financial institution, your insurance agent and your investment advisor when completing your annual financial exam.
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