It is almost that time of year again to prepare for classes. It’s also the perfect time to review your financial goals to see if you’re on the right track for the school year and beyond.
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Get Your Books Organized
Just like organizing textbooks, the first step is financial organization. Deciding where to store your key documents is important. Keep your financial files in a safe and secure location that's not easily accessible to others. If you prefer traditional paper files, consider using a fire-resistant file cabinet, safe, or safe deposit box. Or, go digital for paperless storage. For electronic documents, back up your files on a reliable, secure cloud storage service. Don't forget to leave instructions with a trusted individual on how to find these documents in case of an emergency. Many online tools also allow you to give access to a trusted beneficiary.
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Give Yourself the Goal Test
With more than half the year behind us, now is an excellent time to test the financial goals you set at the beginning of the year. Just like a pop quiz, assess whether you're on track to achieve those goals or if it's time to hit the books and adjust your strategies.
Quiz yourself on these questions. Keep track of your answers and answer them again for your next financial check-up. Are you improving? Or going down? That can give you insight into which direction your finances are heading.
- Are you consistently contributing to your savings goals?
- Have you made progress on paying down debt?
- Is your emergency fund where you wanted it to be?
- Did your spending align with your budget?
- Do you have the right insurance (life, home, auto, etc.)?
- Is your credit score improving?
- Do you have a tax strategy now, instead of waiting until tax season?
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Study Your Finances
Not where you want to be financially? That's okay! No time like the present to start studying so you can ace your next financial check-up. Review what you need to work on. Is it insurance? Or do you need to pay down more debt? With your goal in mind, develop a plan to work towards improving that aspect of your finances. Research ways to work towards your goal, implement your plan, then review.
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Check With a Financial Tutor
If you're feeling lost or would like a second opinion to ensure you're on the right path, consider consulting a financial advisor. Think of them as your financial tutor, ready to help you review your progress and provide guidance tailored to your situation.
The advisors at Chambers Bay Wealth Management are happy to help you get on the right track for financial success. Contact us today.