Financial Review: 5 Steps to Review Your Financial Standing

Have you checked in on your financial health this year? 

If the answer is no, it’s time to take a look. It’s essential to make sure that you have a solid understanding of your financial well-being, checking in at least once per year. After all, how else will you know if you’re on your way to meeting your short- and long-term goals? Your yearly check-in can be a great opportunity to see where you stand, set new goals, and adjust your strategy accordingly. Ready to get started? Here are five steps to review your financial standing.

1. Calculate Your Net Worth

To determine your financial standing from a high-level view, you must first calculate your net worth. You’ll do this by subtracting your liabilities from your assets. Online tools, such as Dave Ramsey’s Net Worth Calculator, can help you determine your number quickly. You can use the result of your calculation to compare your current standing to where you were or where you want to be. Understand, though, that this is simply to determine your baseline—not to compare yourself to others. No matter what the number is and what you want it to be, don’t be hard on yourself if this isn’t the number you were hoping for. A comprehensive financial strategy can help you get there. 

2. Review Your Individual Accounts

Take time to review each of your accounts, including various types of savings, investments, and debt. How are they progressing? Are your savings and investment accounts growing? Is the amount of your debt decreasing? 

Identify whether you feel that these accounts are where you would like for them to be. If so, great work! There are still likely ways for you to optimize your financial strategy. If not, that’s okay, too. Evaluate where you can improve, and begin putting those new tactics into action. The next time you sit down to evaluate your accounts, you’ll be glad you did. 

3. Re-Evaluate Your Goals

Now that you have a foundational view of where you stand, it’s time to re-evaluate your goals. Where do you want to be at this time next year? Try setting S.M.A.R.T. goals (specific, measurable, attainable, relevant, and time-bound). Write your goals down, and share them with your family so that they can help hold you accountable. You may even consider including your family in those goals, such as saving for a vacation together. So, what are your new goals for this year?

For inspiration, here are a few goals you might consider: 

4. Adjust Your Financial Strategy

Now that you know where you stand and what goals you want to achieve, it’s time to adjust your financial strategy accordingly. Look at each goal individually, and make a list of what needs to happen to make them a reality. Consider these goals comprehensively, as well, to see how they can work together. For example, how might paying off high-interest debt affect your savings or investment goals? Make all necessary adjustments to your financial strategy, and determine a date that you will review your progress and check in on the success of your newly-updated plan. 

5. Consult a Financial Advisor You Trust

You should always be aware of your financial standing, but planning for and executing your financial strategy can be difficult to keep track of. More than that, you may not always be aware of all of your options or the latest changes in the economy or federal and state tax laws. A financial advisor acts as your ally to always keep you informed and keep your goals in mind. Consult an advisor on how to help make your personal and professional dreams come true with a sensible, comprehensive strategy.

Southwestern Investment Group is Here to Help 

Our advisors can help you review your financial standing, evaluate your goals, and adjust your strategy. We put you on the best track to help make your money work for you and your family. Contact Southwestern Investment Group today to schedule a consultation!

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