We are all familiar with the need to pay close attention to keeping our bodies healthy. We exercise, try to eat healthy and visit our doctors for checkups. It is also important to do financial checkups every so often to make sure that your financial wellbeing is on track for where you want and need to be.
There are a few important areas to try to diagnose each year.
First, be sure to have a strong emergency reserve fund available for unplanned expenses. Most experts recommend three to six months’ worth of expenses be set aside.
Next, confirm that your risk planning and management is updated. Confirming that you have adequate short and long term income protection in the event of a sickness or injury is one area that is very often overlooked in financial planning. In addition, confirming that your family is protected in the event of your death is a key area to check up each year.
Last, looking ahead to your future and saving for either college costs, a new home or retirement can be a daunting undertaking, almost like taking on a new fitness regimen. Just like that new workout, try to keep in mind that every bit extra that you put toward your goals will help you for the long term.
Doing a financial wellbeing checkup each year is a great way to try to keep your finances in tip top shape!
Sarah J. Leer is a registered representative of and offers securities, investment advisory and financial planning services through MML Investors Services, LLC. Member SIPC. Supervisory Office: 5001 Louise Drive Suite 300 Mechanicsburg, PA 17055 717-791-3300. Polaris Advisors is not a subsidiary or affiliate of MML Investors Services, LLC or its affiliated companies. CRN201908-216219