If you were on a long road trip, you'd stop occasionally and look at the map to see if you were headed in the right direction. An annual financial checkup serves the same purpose.
It's an opportunity to review how you've done financially over the past twelve months and make sure you're still headed in the right direction when it comes to managing your money.
What goes into a Financial Checkup?
Review your credit report and score.
Make sure there isn’t any incorrect information, new accounts you’re not aware of or any negative remarks on the report. If you find an error or inaccuracy contact the credit burrow to dispute it.
Review your budget.
Go over your monthly spending, item by item, look for expenses that have increased or decreased or new expenses that have been added. Are those changes justified or required? Review your income, if it has changed make the appropriate adjustments by either reducing expenses or increasing savings.
Review your debt.
Look over your debt repayment plan, are you still on track to pay off your debt by a targeted deadline. If not, make the adjustments to get back on course.
Review your investments.
The stock market and economy change at a rapid pace. Sometimes our investments or portfolios do not match the current environment. Review the portfolio to maintain the proper asset allocation within your risk tolerance.
Check your insurance package.
You need insurance to protect your assets: your home, your car, your earning power, your life and health. Review your insurance policies to ensure that they’re still providing adequate coverage. Also, look for any gaps in your insurance plan. Gaps can occur when life events happen such as getting married, having a child, or buying a new home.
Update your goals.
The final piece of your financial review is checking in with your personal financial goals. Are you meeting your savings goals for a house, new car, a future vacation and even retirement. Are you maximizing your ability to take advantage of TFSA’s and RSP’s
By conducting a comprehensive financial checkup annually and booking a meeting with an advisor to review your findings, you'll help ensure that every aspect of your financial life is aligned with your goals and ready to adapt to any changes!
Now would be a good time to book a meeting with your advisor before the end of the year.
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