Are you getting regular checkups? It is vital to see your doctor on a consistent basis to detect the early warning signs of potential health problems. It’s equally important to get regular fi scal checkups to ensure your fi nancial well-being. Yes, biannual checkups should be integrated into your overall fi nancial success plan. Undergoing a fi nancial checkup can seem like a tedious task, but with the proper guidance, the task can become a bit more manageable. Here’s a handy to-do list.

Step 1: Make it
Fun No one wants to spend an entire day pouring over bank statements — that’s about as exciting as watching Bush’s State of the Union Address on repeat. Make it a point to inject as much fun into the process as possible. Go to your favorite coffee shop, load up the iPod with your favorite tunes, and go for it. The time spent will seem a lot more enjoyable.

Step 2: Monitor Cash Flow and Assets
While your grandparents relied on their trusty paper and pad to keep track of their fi nances, technology since those days has advanced by leaps and bounds. Invest in good software like Quicken or Money. Both offer multiple versions and are reasonably priced from $19.99–99.99 (includes home and business software). Software aids make it a breeze to keep track of your spending and assets.

Step 3: Become a Private Investigator
Now that you’re in a comfortable environment with the proper tools, it’s time to really dig deep to get to the bottom of what you’re doing with your money. So begin to pour over your bank and credit card statements. Search for ways to decrease your overall spending. Look for any erroneous charges and questionable fees. (Trust me, it does happen.) Keep track of the status of your emergency fund. As a rule, your account should contain enough cash to cover expenses for six months, just in case an unfortunate event, like an illness or layoff, causes a reduction in your household income. If you don’t have this amount, there’s no need to panic, just know that you have work to do. Also, take a look at your insurance coverage, nonessential expenditures and credit report, they are all fundamental components to becoming a super sleuth with your finances.

Step 4: Self-Diagnosis
Although you may not be a fi nancial professional, you should be able to come to some conclusions following your fi nancial checkup. So what’s the prognosis? In what areas are you excelling? Where can improvements be made? Once you determine where you need work, you’ll be one step closer to an even greater sense of fi nancial fitness. - dewayne rogers

Share this article with a friend