According to research with online financial experts, the beginning of a new year is the perfect time to assess your financial health and future. Many people recommend doing an assessment right at the beginning of the year because it’s a pivotal time to start fresh. But if you feel a bit behind because you haven’t done it yet, the good news is that there is no bad time to do a financial assessment.
So, where should someone start with a financial assessment? Here are a few steps to take to get started.
1) Start With Your Income
How much did you earn last year? Is your salary in line with and competitive with similar jobs in your area? If not, a candid conversation with your employer may be in order. As you prepare for this discussion, make sure you do your research and provide collaborating documentation for your presentation. While this type of meeting may be uncomfortable for you and your employer, more employees are sharing their concerns and salary information—not to be negative, but to stay competitive.
2) Assess Your Monthly Expenses
Does your income meet or exceed your expenses? How will know if you don’t do a budget! To learn more about budgeting, we encourage you to check out our YouTube channel for our Budgeting 101 webinar. This webinar provides all the information you’ll need to start a budget, including a dynamic Excel spreadsheet that is easy to navigate and fun to use.
3) Credit Check
Your financial checkup should include a credit check. You can access your credit report for free through annualcreditreport.com. Examine your report closely to ensure there are no discrepancies, especially credit card balances. Identity theft often starts with credit card fraud, so a close examination can guard against fraudulent activity. If you’re looking for a checking account with free credit reporting from all three credit bureaus, check out the benefits of a Triangle Credit Union Better Checking account.
4) Savings Goals and Retirement
Last, assess your financial progress with savings goals, wealth-building investments, and retirement. Triangle offers a variety of financial planning tools including a new financial wellness assessment tool that provides an immediate snapshot of your shortcomings and recommend steps to improve them. This assessment takes less than 5 minutes, but the outcome is worth it!
A solid financial position is essential for a healthy and secure future. An annual assessment can help you make intelligent decisions about your financial health today and prepare you for a wealthy tomorrow.
