As 2022 approaches, it’s time to turn your attention to your financial health goals for the coming year. Your financial health is more than your bank statement – it encompasses everything from your budget and taxes, to insurance.
Here are the top five reasons, from the professionals, why you should conduct a financial review before determining next year’s goals.
1. A Financial Review Gives You a Clear Picture of Your Budgeting Practices
Establishing a budget is a necessary component to maintaining control over your finances, but only if you stick to it. The end of the year is a good time to check in on how well you did.
Take a close look at where you spent your money to determine if there are areas where you may have consistently overspent. Assess whether you need to reign in your spending or alter your budget to accommodate.
2. It Helps You Stay on Target With Your Savings Goals
Having a solid savings account is important, yet 74% of American adults have little to nothing set aside for their futures. When things are tight, it can be easy to ignore savings goals. Putting money into an emergency fund or savings account ensures you’re better prepared to deal with life’s unexpected events.
3. A Financial Review Allows You To Make Important Investment Decisions
Take some time to review your portfolio and assess performance. Any investment changes you make could have implications on the current year’s taxes, so while it’s a good time to see what changes you need to make, look for ways to minimize the hit to your taxes.
4. It Allows You To Make Changes to Your Insurance
Your end-of-the-year review should cover your insurance coverages. Review your health, home, auto and life insurance policies to determine if you need to make any changes in coverage or beneficiaries. It’s also a good time to shop for new rates.
Additionally, check on your health insurance to determine what benefits you have remaining to see where you may need to make changes for the coming year.
5. A Financial Review Helps You Set New Goals
Taking the time to analyze your financial health for the previous year gives you a good starting point for developing your goals for 2022. When you have a clear picture, you can establish goals that are realistic and proactive.
Get Help From a Financial Planner
As important as a financial review is, the task is often overwhelming and time-consuming when your life is already busy. A financial planner can take the burden off your shoulders.
At KDK Accountancy Corporation, we have the expertise to guide you through the process, making it easier for you to understand your current financial health and develop new goals.
Contact us online or call our team directly at (407) 759-5363 today!