Financial Health Check-In: Assess, Adjust, and Activate Your Plan

Financial Health Check-In: Assess, Adjust, and Activate Your Plan

By Letitia Berbaum

Regular check-ups on our health are a standard many of us have in our lives. From dental check-ups to growth check-ins for our little ones, assessing the current state of our health is vital to recognizing, managing, and recalibrating so we can stay on track. Just like our health, our finances should undergo routine health audits as well.  As with all things in life, change is constant. The stock markets are no exception. During times of market volatility, we are often reminded to check-in on our investment portfolios. However, being engaged with your portfolios’ performance throughout the ebbs and the flow of the market is a best practice for investors on all areas of the spectrum. Most investors have both short and long-term goals that can range from paying down debt to saving for a house, to creating a college savings plan or taking a weekend get-a-away. By checking in on your portfolios’ performance regularly, you can more effectively course correct when needed if you have gotten off track with a goal. Regardless of individual scenarios, the key to staying on track with your financial goals and managing your financial health is having an evaluation process in place. Auditing your progress periodically can ensure you are making progress and not merely movement towards your goals. 

Here are ten critical steps you can take during an audit on your financial health to help you identify where you need to make strategic adjustments to get back – and stay on track: 

1. Start at the Beginning: Review your comprehensive list of financial goals. From savings and debt management to investments and large purchases – have an honest look at where you are at. Consider both your short term and long-term goals. 

2. Assess Progress: Evaluate how much progress you've made towards each goal. Use specific metrics where possible (e.g., saved 50% of targeted amount, paid off 30% of debt).

3. Compare Actual vs. Planned: Compare your current financial situation with what you had planned for mid-year. Look for discrepancies or areas where you've exceeded expectations. Celebrating the wins is important too!

4. Analyze Spending and Budgeting: Review your budget and spending patterns for the year so far. Identify any areas where you might have overspent or managed to save more than expected.

5. Check Investment Performance: Connect with your financial advisor to assess how your portfolio is performing. Be open to making changes that may help boost your investment strategies. 

6. Evaluate Debt Management: Review your debt as a whole, including credit cards and loans to assess whether you're on track with your repayment goals and timelines. Evaluate interest rates and consider if refinancing or consolidation could be beneficial.

7. Consider Changes in Income: If your income has changed (increased or decreased), evaluate how this has impacted your ability to meet your goals. If you need to adjust your goals based on an increase or decrease in income, now is the time to do that!

8. Remember that Diversification is Key: Regardless of market volatility – but especially in times of turbulence – diversification of a portfolio is key. If you are feeling like your portfolio is not well balanced, there is no time like the present to discuss your thoughts with your financial adviser.

9. Create Your Financial Goals 2.0: Now that you have reviewed your goals and overall progress, make the adjustments needed to get you back on track for the year. Or, if certain adjustments can’t be made, alter your goals to be more realistic based on your current situation.

10. Keep Your Long -Term Vision in Mind: Market volatility is expected and will always occur when it comes to your investments. Economic conditions will routinely fluctuate. Regardless of the shifts, keeping your long-term vision in mind will help you make more intentional and less reactive decisions that can benefit your portfolio in the long run.
 

If you are unsure about what changes you should consider to help get you back on track, a wise next step may be consulting a financial professional. An outside perspective from someone seasoned who can look at your financial health from a non-biased perspective may be just what you need to finalize your game plan. While we are currently seeing more softening of the economy, we are also seeing opportunity which creates a counterbalance. Managing your emotions, especially in times of turbulence, makes dollars and sense as they affect what you do and don’t see from an opportunity perspective. As Warren Buffett says, “If you cannot control your emotions, you cannot control your money.”

 

Disclosures:

Zandbergen Group is a dba of Axxcess Wealth Management, LLC ("Axxcess") is a registered investment adviser.

 

This content is intended to provide general information about Zandbergen Group. It is not intended to offer or deliver investment advice in any way. Information regarding investment services is provided solely to gain an understanding of our investment philosophy our strategies and to be able to contact us for further information. For additional information and important disclosures, please visit our website at https://www.zandbergengroup.com