A financial check-in is an opportunity to monitor your financial wellness, identify any issue, review how you’re managing and set goals for your future.

Why should you do a financial check-in?

Doing a financial check-in will help you make sure you are staying on track with your financial goals.  When you do check-ins, it can help you make sure you are on track for paying down debt, building your Emergency Fund for unexpected expenses and investing in your future.

How are you feeling about your finances right now?

If you were to look back at where you were January 1, are things feeling and going better or worse?  Why? What is in your control, and what isn’t?  What would help you have peace and feel more financial freedom? What are some steps you can take now to feel that peace and financial freedom?

When and how often should you do a financial check-in?

It is wise to keep an eye on your money daily to avoid overdrafts.  This is helpful to make sure you aren’t being charged for something that you forgot about, such as an unused subscription service.  If you find those charges on your account, you can cancel unused subscriptions and save money.

Setting your Flexible Money Management Plan (budget) each month also helps to make sure you are living within your income.

Doing a deeper dive into your finances annual, quarterly, or mid-year in a financial check-in is beneficial.  Depending on your situation you may decide to do it quarterly, every six months or annually.

Doing a check-in will give you time to identify patters of spending and determine if you are on pace to reach your financial goals as well as make sure your goals are still relevant. Another benefit of a check-in is to make adjustments especially if you have had a major life event, such as, marriage, divorce, having a child, purchasing a home, retirement or even starting a business. 

What should I review in my financial check-in?

Emergency Fund

Do you have enough saved in your emergency fund account?  Having an emergency fund will make those unexpected expenses an inconvenience instead of an emergency.  It will give you the confidence to handle those unexpected expenses without having to rely on credit cards or other means.

If you are just starting out, start small. Work on saving $500 in a separate savings account specifically set aside as your emergency fund.  Overtime you can increase it to $1000 and overtime build it up to three to six months’ worth of living expenses.

Living withing your means

Are you living within your means, not spending more than you are bringing in?  Making more money than you are spending is another key to reaching financial freedom.  Creating a Flexible Money Management Plan can help you accomplish this.  When you aren’t seeing where your money is going this can cause stress and anxiety, so having a plan and following it can instead give you the confidence that you can manage your money and still enjoy life to the full. 

Doing a financial check-in can be a great time to review your Flexible Money Management Plan and make adjustments. You may find that you are able to pay off debt sooner than you originally planned and send more money to your Emergency Fund account each month. 

Pay off debts

Are you on schedule to pay off your debts?  During your financial check-in is a great time to review all debt balances and see if there are any that you can pay off sooner than you originally planned.  If you have a debt that is $1000 or less maybe focus on paying that one off first.  This gives you confidence and a boost to keep going on paying down your debts. 

Insurance

Do you have the proper coverage you need?  Home, health, auto insurance are the most common and very important to have.  During your financial check-in it is a great time to make sure you have the coverage you need and to review your annual premiums.  You can meet with an insurance agent or shop around and see if you can find better rates and coverage.  Talking with an insurance agent can help you make sure you are covered for what you need, but also make sure you aren’t over insured and over paying for coverage you may not need.

Future Investments

Are you investing in your future?  Could you contribute to a 401K plan through your employer?  Many employers offer company match.  Reviewing your Flexible Money Management Plan and see if you can take advantage of company matches. 

If you are unclear on which plan is best for you and how much to invest, schedule a meeting with a financial advisor. 

Create a Financial Check-In List

When creating a checklist include long-term and short-term goals.  You can include things like:

  • Living withing my means
  • Create a new Savings Fund such as a Sinking Fund Account
  • Create a will
  • Inspect your insurance
  • Retirement contributions
  • Credit score and credit report review
  • Credit card debt
  • Investments
  • Review Tax Withholdings

As part of your financial check-in celebrate your wins!

  • What are your WINS so far this year? 
  • Have you uncovered some of your money beliefs that have been holding you back from reaching your financial goals?
  • Have you set up and started contributing to an emergency fund?
  • Have you paid off some debt?  (i.e. at least one credit card, auto loan, student loan, etc.)
  • Have you started a sinking fund for any upcoming expenses? 

Take the time to celebrate your wins!  Be proud all the little improvements you have made so far this year.  Regardless of how small they may seem it all adds up. Think about how small a grain of sand is on the beach, all those tiny little grains make up a beautiful beach.  So don’t discount any of your small wins.  Celebrate them! 

Take time to reassess your financial goals and ensure that your financial plan aligns with your goals.  There is no one-size-fits-all, you have to decide what works best for you.  

How can I help YOU?

As a financial coach, this where were I am here to help! We will review your financial plan and discover what steps you can take on your financial journey to reach the goals you want in a way that works for YOU!

Schedule your free consultation and let’s celebrate together your wins and use this as an opportunity to keep growing and learning on your financial journey.