Dr. Slava Shut

When it comes to ensuring that you’re set for financial success, checkups are a necessity. Imagine your finances are like a car – you have to get regular checkups to ensure that things are running smoothly, identify any problem areas, or make repairs where needed. And just like with a car, neglecting your financial tune-ups could result in sudden, irreparable damage.

But how often should you perform a checkup on your finances? Though I believe you should check on your finances and investments on a daily basis, a full checkup should be done at least once a year, but preferably every six months.

What does a financial checkup include? Just like a mechanic has a list that they go through that includes different parts of a vehicle (rotating the tires, checking the oil levels, etc.), a financial checkup includes multiple parts as well. Here are 7 to-dos when checking up on your finances.

1. Contribute to Your Retirement Accounts
If you work for a company that matches your 401(k) contribution, don’t leave money on the table by contributing at least up to the percentage they match.

2. Check Your Credit Reports
The end of the year is a great time to make sure that you’ve checked your credit reports in the last 12 months to ensure you’re on the right track.

3. Make a Plan to Pay off any Outstanding Debt
Make and stick to a plan to get rid of any debt you might have, even if it’s just a small incremental amount – it’ll add up over time and provide some much-needed relief. If you don’t have any current debts, consider implementing a plan to pad your emergency savings.

4. Use up Your Flexible Spending account (FSA)
A flexible spending account, or FSA, is a savings account established by employers that can be used for medical expenses and provide you with great tax benefits. But because you’ll lose that money at the end of the year if you don’t use it, find out the deadline for using your FSA funds and ensure you make the most of them.

5. Consider Charitable Giving
Something tax deductible that also funds something you’re passionate about? Yes, please!

6. Assess Your Last 12 months
Take some time and reflect on how you did this year from a financial standpoint. Where were your strengths? Your weaknesses? What ate up the majority of your expenses, and is there a way to mitigate them in the future?

7. Plan for the Next 12 months
If your reflection highlights some things that need to be changed, take that info and start implementing it. To make things easier, think of your year in chunks – what changes can you start immediately? What ones can wait until the second or third quarter? Spacing out your changes can make things feel manageable and intentional.

But what if you don’t feel qualified to do a financial checkup on your own, or create and implement the strategies I mentioned above? That’s what financial coaches are for! Finances don’t have to be hard, scary, or secretive. Schedule a chat with me today and we’ll work together to help you achieve your financial goals!