What should you include in a financial review?

A financial review is a must to ensure you are on track to achieve your goals and dreams. Just like we take our car into the garage once or twice a year to have a check-up and get a new warrant or go to the doctor, we also need to do a check up on our finances.

For many of us our idea of a financial review is seeing if we have enough money in our bank account to get us through to our next paycheck. It’s a lot more than that. Some of the key things you should be reviewing are:

How has your net worth changed (your assets minus your liabilities) since your last financial review?
Do you know where you are spending your money and is there a positive gap between what you are earning and spending?
Are you spending your money as wisely as you can?
Are your spending decisions inline with your financial goals?
If you have consumer debt, have you got an achievable plan in place to pay it off?
How much do you still owe on your mortgage? Can you increase your mortgage payments so you can save interest and pay off your loan faster?
Have you got the correct mortgage structure for your current situation? Getting the best rate of interest is not necessarily the only thing to consider.
Are you receiving all the government benefit’s you are entitled to?
Do you have a current will and do you have powers of attorney in place?
Have you reviewed your insurances to ensure you have the correct cover for your current circumstances?
Are all your important documents filed correctly? Do your executors, trustees, etc. know where they are?
Are your professional advisors still meeting your needs?
Have you done your last year’s accounts?
Have you checked if you are due a tax refund?
Have you got a savings or investment plan in place and has it been reviewed recently?
How are you tracking toward providing for yourself in retirement?
Have you got goals in place for the future? Goals don’t necessarily need to be long term, short term ones are often just as effective if not more. The objective of goals is simply to position your focus.