How healthy are your finances?
Doctors recommend at least one medical checkup a year for healthy individuals and periodic checkups if there are health challenges. The state of your finances will affect your health in both positive and / or negative ways. For example if your finances are in order you will have peace of mind which contributes to great health. Financial challenges add stress to your state of health and can be costly and disastrous.
How often should you get a Financial Checkup?
I am not a doctor, but as a Financial Counselor, I recommend one (1) Financial Checkup per year for low risk individuals and at least two (2) Financial Checkups for those with financial challenges. Here are 8 items that should be reviewed during your Financial Checkup:
1. Bank Account(s )reconciliation
2. Pension valuation
3. Budget analysis
4. Personal Expense comparison
5. Debt Analysis
6. Net Worth
7. Insurance Review
8. Income Adequacy
Peace of mind comes from accepting those things we cannot control and also from executing influence over those things that we have the power to control. Completing your ‘Financial Checkup’ on a regular basis not only gives peace of mind but identifies potential financial irregularities that may result in financial ruin.
For assistance with your Financial Checkup contact your Banker, Financial Consultant, or log on to www.lcmoneyplan.com where members have access to an online counsellor.
Financial Counsellor Ralph Lewis has over 30 years in the banking industry and lives in the Cayman Islands with his family. Check out his blog fortnightly on Friday where he will be providing you with tips on how to improve the health of your finances