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Is It Time For A Financial Check-Up?


Is It Time For A Financial Check-Up?

Are your finances healthy? Much like an annual health check-up, performing a financial check-up is crucial to maintaining good financial health.

A financial check-up is a proactive approach to helping you maintain a healthy financial life. It gives you the opportunity to have a clear sense of all the moving pieces that affect your finances and will help ensure that you are on the right track with spending and saving habits. It will also give you a chance to review your finances and to make the necessary adjustments to your plan.

Follow these critical steps for a successful financial check-up.

Identify Your Financial Goals

In order to have a successful financial plan, it is important to have specific, measurable goals. It is equally important to determine a realistic timeframe for achieving those goals. Whether you are planning to increase your emergency savings or pay off debt, it is imperative to establish clear goals and timeframes for reaching them. 

Review Your Budget

By reviewing your budget, you are evaluating your progress on previous goals. Determine any changes that took place in the prior year to income, debt, and any other factors that might affect your budget. Make adjustments to ensure the success of current goals.

Pay Down Debt

A check-up is a good time to explore options to help you pay down credit card debt as well as options for managing other debts. With simple adjustments to your spending, you can pay down your debt.

Assess Your Credit

Are you looking to take out a mortgage or make another large purchase this year? A check-up is a great time to review your credit report to see where you stand and to get tips to improve your score moving forward. Take advantage of free credit reports and scores with services like those offered as a benefit of our Five Star Checking Account.

Evaluate Your Savings

Make sure your savings or emergency fund matches your current circumstances. If your income and expenses have increased, then it’s time to increase this fund. Plan to grow your fund to meet current needs in the event of an emergency.

Make today the perfect opportunity to reflect on how well you’re taking care of your finances!