You go to the doctor for check-ups to stay physically healthy, right? Think of a regular financial check-up the same way—it keeps your money healthy. Doing one every three months means you can spot problems early, pat yourself on the back for doing well, and tweak your plans before little things turn into big headaches. Don’t worry; you don’t need a finance degree! Just a few easy steps can make a huge difference.
Step 1: Review Your Income and Expenses
Start by checking how your income and spending have changed over the past few months. Look at your bank and credit card statements to identify patterns.
Ask yourself:
- Did I spend more or less than I earned this quarter?
- Are there any recurring expenses I could reduce or cancel?
- Am I still staying within my budget categories?
If you find that your spending has crept up, look for small, realistic adjustments rather than trying to overhaul everything at once.
Step 2: Check Your Savings Progress
Next, see how you’re doing with your short-term and long-term savings targets. This means checking on your emergency fund, vacation fund, and how much you’re putting into investments.
If your emergency fund doesn’t cover at least three months of living expenses, make it a priority to build it back up. For bigger goals, like retirement or investments, check to see if you’re putting money in regularly. See if you can snag any employer matching or tax breaks through your accounts.
Step 3: Revisit Your Debt Strategy
Debt can get out of control if you ignore it. Make sure those numbers are going down, not up.
Check your credit card balances, loans, and those “buy now, pay later” deals. If your debt is increasing, find ways to cut back on spending or get a better interest rate. Even small, extra payments can save you a bundle on interest over time.
Step 4: Evaluate Your Financial Goals
What you care about can change fast, so check your goals every quarter. Maybe you got a new job, moved, or had a baby. Your financial plan should match your current life and what you want to achieve.
If a goal seems too hard or doesn’t fit anymore, change it. Financial goals should get you motivated, not stressed out.
Step 5: Track Your Net Worth
Finally, figure out your net worth by subtracting what you owe from what you own. Keep track of this number each quarter to see how you’re doing overall. Even if it only changes a little, being consistent is what matters.
Final Thoughts
Doing a financial check-up every three months doesn’t take long, but it gives you a much clearer view of your financial situation. It helps you stay on track, stay focused, and be ready for whatever comes next. Make it a regular part of your life, and you’ll feel better about your money all year.