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What Finances Should You Evaluate Quarterly?

What Finances Should You Evaluate Quarterly?

| March 22, 2023

Just as you routinely do maintenance on your vehicle, home, and personal health, your finances need routine check-ups too. A quarterly financial review can give you an accurate understanding of your financial wellness and give you the opportunity to adjust for the next quarter. Continue reading to learn what finances you should evaluate quarterly.

Your Budget

If you do not already have a budget set in place, it’s time to get started. A monthly budget allows you to see how all of your money flows in and out of your account and keeps you in control. This also helps prevent you from living above your financial means.

Each quarter, you can evaluate the past three months of how well you stuck to your budget. Analyzing your spending versus your budget gives you the chance to see what the problem areas are. If your budget is not working for you, it’s time to make adjustments to either your budget constraints, your expenses, or your self discipline.

Your Debt

Your debt could be holding you back from reaching your other financial goals. Take account of all of your debts, including student loans, personal loans, credit cards, car loans, and mortgage. Your debt could be harming your credit score and preventing you from qualifying for other loans or getting lower interest rates. List your debts from highest interest debt to your lowest interest debt. Now you can work your way down the list to pay off the debts.

Your Retirement Accounts

While retirement may seem like it is a long ways away, time is key to build up your nest egg. Each quarter, you should be taking account of your 401(k) and IRA balances. While there may be swings based on how the economy is doing, take a look at your rate of savings overall to make sure you hit your retirement goals when it's time.

Your Insurance Coverage

Check in on all of your insurance policies, including life, car, home, health, and auto. Take account of the coverage amounts, premiums, and deductibles. Making sure you have the proper coverage can be a real help if you ever need the insurance policy.

Your Credit Score

Your credit score is the lender's way of determining how trustworthy you are to pay back a loaned amount. The higher your credit score, the more trustworthy you are to lenders, the lower interest rates you can receive, and the higher you can qualify for. Take a look at your credit report to see where you stand, be aware of your debts, and check to make sure there aren’t any inaccurate accounts or inquiries.

Handling your finances on your own can be overwhelming; you know what goals you want to reach but might not know how to get there. Instead, have an advisor from Plan A Wealth Management by your side. Our advisors will help guide you through the ongoing financial planning process and ensure you are working towards your financial goals. Schedule a consultation with us today to get started.