Financial Planning Checklist
If you plan to map out your annual financial plan, you deserve a pat on the back. Ensuring you have covered all the bases is vital to your short and long-term financial health. In addition, an annual financial planning checklist makes it easier to see which tasks are complete and which you still need to address.
The following financial checklist will provide general information to help you review your finances.
Create a Budget
The first and most crucial step toward an excellent financial life is responsibly creating a budget to manage your income and expenses. Make sure you include how much you want to save every month in your budget.
Build an Emergency Fund
Establishing an emergency fund gives you greater peace of mind about your future. You may set aside a certain amount of your money to help you financially survive an emergency life event. Keeping your emergency fund in a savings or money market account is essential because you want to have instant access to it if you suddenly need the money.
Manage Your Debt
Managing your short- and long-term debt, including your credit card debt and student loans, is vital to maintaining your financial lifestyle. For example, short-term debt could include a 3-year loan for a car or a low credit card balance that you plan to pay off within one year. Long-term debt should include home mortgages and student loans, which you expect to pay off over an extended period.
Outline Your Financial Goals
Once you have understood the management of your short- and long-term debt, you can move on to thinking about the short-, mid-, and long-term financial goals.
Short-term financial goals will take place over 1 or 2 years and may include:
- Paying off high-interest debts.
- Investment-related goals.
- Preparing for significant changes in your taxes.
Mid-term financial goals may include a life insurance policy or disability income insurance, buying a new property, and family planning.
Long-term financial goals usually fall into two categories: retirement planning and planning for your legacy. It is never too early to plan for your retirement, and if you have the right plan to support your lifestyle down the road.
Put Your Family First
Many important life milestones, such as buying your first home, getting married, starting a family, changing careers, or entering retirement, are foreseeable and require careful planning, especially financially. Other life-changing experiences, like job or spouse loss, can happen suddenly and unexpectedly. So how can you financially prepare yourself and your loved ones for these various life events?
Consult the Professionals
Working with financial experts can help you to clarify your financial goals. Also, it can help you to find the right financial products and services, from insurance to retirement planning and investing.
We at Royal West Agency understand your financial objectives. We have experienced financial experts who can help you build greater financial security and explore the best financial solutions for you.
