Personal financial review checklist: Step-by-step guide

Just like regular doctor visits can help keep your health on track, a financial checkup —also called a financial health check— can be a useful way to stay on top of your financial well-being and determine if any areas could use a tune up. A personal financial review takes a closer look at money management habits and can help catch potential issues early before they turn into larger problems.

7 steps to assess your personal finance & budgeting goals during a financial health check

A financial plan isn’t meant to be set in stone, but should evolve as goals and circumstances change. To get a snapshot of personal finances and budgeting, try this financial planning checklist to better understand the current situation and how to make informed decisions going forward.

1. Pinpoint goals

To get a financial checkup rolling, start by reviewing the short-term and long-term financial goals that were set last year. Personal goals act as important checkpoints to gauge financial progress and can help to determine if any changes need to be made. Did you miss the mark on any goals and why? Does each goal still make sense, or do they need to be updated? Remember that as life changes, goals will often change too. This is why checking in regularly can provide an opportunity to recalibrate and update a plan to help financially stay on course.

2. Calculate debts

Evaluating personal debts and how much is owed is an important step in a financial checkup. Common types of debt include a mortgage, medical bills, credit cards, car loans, student loans, and any other personal loans. For many individuals, the total level of debt should decline each year. If not, determine what tweaks can be made to the budget to put more money toward paying down balances. There are many different strategies for paying off debt—like paying more than the minimum or paying more than monthly—find a method that works best for you.

3. Review finances and budget

Think of a budget as a friend, not a foe, since it can be a helpful tool for effectively paying off debt and creating financial stability. As a financial framework, a budget can provide a roadmap for prioritizing spending, knocking down debt, and achieving personal goals. Even if you don’t have one, you can create a budget now. By using a software app, a spreadsheet, or pen on paper to map it out, it’s easier to track income vs expenses and determine if certain items need to be cut or adjusted.

4. Evaluate a retirement strategy

Reviewing a retirement plan each year or after major life events can help make sure there’s a strategy in place that aligns with long-term goals. During the review, think about any lifestyle changes or life events in the past year. Do new goals need to be added or removed from the list? Has your expected retirement age changed?

Having a diverse retirement portfolio may help support your desired lifestyle in the future, so check for any potential income gaps and determine if additional savings options might be needed. For instance, if 401(k) contributions have been maxed out, there are certain life insurance and annuity options that may help increase savings for retirement. Talking to a financial professional can also help you zero in on the most suitable solutions to match financial goals and further build a retirement nest egg.

5. Assess insurance coverage

From auto and home insurance to renters or life insurance, including a review of current policies as part of a financial checkup can help see that the coverage is still in line with current financial needs. Policies may no longer be adequate for your current financial level, or if any life events have happened in the past year, adjustments may be necessary. Getting married or having a child, for example, can provide a good opportunity to review a life insurance policy and make sure adequate protection is in place.

6. Create or review the will

Updating final arrangements is also an important step in a personal financial review. If a will hasn’t been created yet, online tools and resources can be a helpful way to put one together, especially for simple estate planning needs. It can also be a good idea to meet with an estate planning attorney or another qualified legal professional who specializes in wills and trusts to help make sure everything is in order. Think about any relationships or circumstances that have recently changed or if beneficiaries need to be updated on life insurance policies. Check to see if the current coverage amount matches financial needs or if additional protection is needed.

7. Consider reviewing finances with a professional

While regular self-assessments are valuable, there are times when checking in with a financial professional may be the right step for you. This can provide an opportunity to ask questions, review life events, address concerns, and explore a variety of financial topics. Seeking guidance can help fine-tune a plan, provide personalized strategies, and assist you in maintaining momentum toward meeting your goals.

How often should a financial checkup be completed?

Conducting a personal financial review at least once a year can help you check your progress, pinpoint any issues, and provide an opportunity to make any necessary adjustments. It’s also a good idea to complete a financial health checkup following major life events, like a job change, marriage, the birth of a child, or as you approach retirement. Life changes can affect income, expenses, goals, and risk tolerance, so it’s important to revisit a financial plan and it’s a good idea to make sure it’s still aligned with evolving needs.

How often should you check in with a financial professional?

Touching base with a financial professional once a year or during key transitions like a new job, home purchase, or family change can provide valuable guidance and help a financial plan stay proactive, not just reactive. These check-ins can also offer personalized advice and help you navigate complex decisions with greater confidence.

Time for a formal financial checkup? Contact Midland National for help navigating your long-term goals

Keeping financial health in peak shape takes work and dedication, just like maintaining physical and mental well-being. When you prioritize money management and check in regularly to review a financial plan, it can help lower money-related worries and keep savings goals on track. North American’s life insurance and annuity products are designed to help provide valuable support as you work toward your financial goals. To learn more or get personalized guidance, contact North American or reach out to a financial professional today.

The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.

B1-MN-11-25