The Annual Financial Review: Don’t Overlook Debt

The Annual Financial Review: Don’t Overlook Debt

Just like getting a yearly physical or taking your car in for a regular inspection by your mechanic, you need to review your personal finances on at least an annual basis (more often if your circumstances change) to make sure you’re on track to meet your goals and protected from potential liabilities. Here are 10 points you should cover in your annual financial review:


10-Point Financial Checkup

  1. Important legal documents: will, power of attorney, etc. to make sure they are current and no changes are necessary.
  1. Insurance policies: homeowners, renters, health, life, long-term care insurance. Do you have the coverage you need in the event of an emergency?
  1. Savings and investments: stocks, 401(k), IRA, savings and money market accounts — determine your returns and evaluate whether you need to rebalance your portfolio or increase your contributions.
  1. Emergency savings fund: aim for at least 6 months’ worth of savings (more if you can) in the event you lose your job.
  1. Credit score and credit report: look for any errors or inaccuracies that may be lowering your score. Take corrective action if necessary.
  1. Tax planning and charitable giving: Do you have a tax-efficient financial strategy? Have any changes in the tax code impacted you? Consult a qualified adviser if necessary.
  1. Progress toward retirement and other financial goals: Make sure you’re staying on track.
  1. FSA and HSA contributions and withdrawals: Are you saving enough and using your plans effectively toward current or future medical costs?
  1. Household budget: Adjust your monthly budget as necessary and try to anticipate any upcoming one-time or occasional expenses.
  1. Debt review: what are the interest rates and balances on all of your debts including mortgage, car loans, credit cards, lines of credit, student and other personal loans? Are you on track to pay them off as fast as you’d like?

AutoPayPlus can help you meet your goals when it comes to paying down your debt. We’ll help you track all your loans in one place and create a customized plan to pay each of them off by whatever date or age you choose. By accelerating the payoff on your loans, you can get out of debt more quickly and potentially reduce interest along the way. Why let your lender decide how long you stay in debt? Take control of debt with AutoPayPlus.

With APP, you can pick your Debt Freedom Date and we’ll figure out exactly how much you’ll have to pay each month on all of your loans to become debt free on your timetable. Then we’ll coordinate with your lenders to make scheduled payments and make sure the extra funds go toward principal where they help you the most.

Make sure debt management is on your list when you review your personal finances. And if you’re not already on track toward debt freedom, APP can help.

Leave a comment