A simple checklist for your yearly money review

Life moves fast, and money plans can drift without anyone noticing. A short yearly money review helps you see where things stand.

You don't need special tools for this. A quiet afternoon, your recent statements and a notepad will do.

Start your yearly money review with cash flow

Start with the basics. Pull up the last few months of bank and card statements.

• Add up what comes in each month.
• Group what goes out into needs, wants and savings.
• Look for subscriptions or bills you forgot about.
• Note when bills are due compared with when you get paid.

The goal is not to judge every purchase. It's to make sure your spending matches what matters most to your family.

Check your savings and debt

Next, look at your safety net. An emergency fund is cash set aside for surprises like a car repair, a medical bill or lost income.

Without one, a surprise cost can push people toward credit cards or loans. Ask yourself a few questions:

• Do we have an emergency fund, and does it still feel like enough for us?
• Could we set up an automatic transfer to savings each payday?
• Could part of a tax refund or other windfall go into savings?
• Which debt costs us the most, and could we pay it down faster?

If debt feels heavy, focus on one balance at a time. Small, steady steps can be easier to stick with.

Review your retirement plan

Retirement can feel far away, but each year counts. Log in to your workplace plan or retirement accounts and take a look.

• If your employer offers a match, are you saving enough to get all of it?
• Did you get a raise that could let you save a little more?
• Do you know how your accounts are invested?
• Has your target retirement date changed?

If you also have kids, see our guide to saving for college and retirement at the same time. Your tax and investment choices depend on your full picture, so a professional can help.

Check your protection and beneficiaries

Insurance is easy to set and forget. Insurance regulators suggest reviewing your coverage after big life events such as these:

• Getting married or divorced.
• Having a baby.
• Buying a home or remodeling.
• A teen starting to drive.

Any of these can change what coverage makes sense. Our guide on how much life insurance you need walks through the basics.

Coverage through work may end if your job situation changes. It helps to know what you have on your own.

Then check your beneficiaries. A beneficiary form on an account can override your will, so the two should match.

• Confirm the names on each beneficiary form.
• Consider naming a backup beneficiary.
• Check that your will and other estate papers are current.
• Store copies where a trusted person can find them.

Your attorney can help with wills and legal papers. Our team can help you review the beneficiaries on your insurance and annuity policies.

Common questions

How often should I review my finances?

A full review once a year is a simple habit for many families. It also makes sense to take a fresh look after a big life change, like a new baby or a new job.

What should an annual financial checkup include?

Most checkups cover spending, savings, debt, retirement, insurance and beneficiaries. The checklist above walks through each one.

Bottom line

A yearly money review doesn't have to be stressful or perfect. Walking through these steps can help you feel more in control of where you're headed.

Write down two or three next steps and put them on your calendar. If you'd like help looking at the bigger picture, learn more about our financial planning approach.

Have questions about your situation? Book a complimentary call with our team.

This article is for general education only and isn't financial, tax or legal advice. Product features vary by carrier and state. Talk with a licensed professional about your situation.