Financial Checkup Guide: Key Facts & How-To Tips


Many of us are concerned about how to manage our finances in the fittest way, and we explore the Internet daily to find out how to conduct a financial checkup. Now, scores of tools can help you become a financial advisor or, do it yourself, a financial consultant.

How to be your financial advisor is a pretty apposite question arising in the mind of people with troubled financial circumstances who can’t afford to appoint a financial advisor by shelling out a lot of money.

Using a financial checkup calculator

You can use a financial checkup calculator to check your financial health. Now, there are five simple steps to use this user-friendly financial tool to do it:

  • Calculate your net worth, and find out which direction it is moving
  • Work out your debt-to-income ratio (and don’t freak out)
  • Assess your housing circumstances
  • See where your funds are moving (and whether you’re outlaying more than you are supposed to) 
  • Ensure that your investment planning is adjusted to your circumstances

How can a financial to-do list help you out?

A financial to-do list or financial review checklist is a set of measures you can adopt to maintain your finances properly and achieve economic objectives. Now, here is how to make a financial review checklist:

1)    Assemble all your financial documents: 

Before you commence, get all your financial documents in one place, including investment accounts, bank statements, pay stubs, latest utility bills, bills from the past three months, credit card statements, and mortgage or car loan statements. 

2) Calculate your income: 

What is the amount of income expected by you every month? If you are a salaried individual, you should consider your tax-deducted amount or take-home pay. If you are self-employed or have additional sources of income like Social Security or kid support, you need to incorporate them. 

3) Generate a list of monthly expenditures: 

List outallyour monthly expenditure incorporating the following:

  • Auto payments
  • Rent or mortgage payments
  • Foodstuff
  • Insurance
  • Entertainment
  • Utilities
  • Dining out
  • Personal care
  • Transportation expenses 
  • Child care
  • Student loans
  • Travel 

You can utilize your bills, bank statements, and credit card statements for the last three months to determine where your money is going.

4) Find out your fixed and variable expenditures: 

Your mortgage, car andrentpaymentsareyour fixed expenditure, whereas your foodstuff, gas, leisure, dining out, and gift expenses are variable and differ from one month to another. Prioritize your variable expenses, looking for areas where they can be cut down or removed.

5) Make a sum of your monthly expenditure and income: 

If your income is more than your expenditure, you are off to a healthy beginning.If it is not, you need to seriouslyponderovercurtailingyourexpenditure and find ways to make some savings.

6) Make alignments to expenditure: 

If yourexpenses exceedyour income, look for areas where you can cut downyourexpensesThis will be particularly helpful for your retirement savings. Try to dine out less or relinquish some of your costly memberships.

Now, thiswas about how to be your financial advisor. In the same way, you can also carry out the financial health check of a company. Becoming your financial advisor or do-it-yourself financial planner is not difficult; you just need to keep the right items in the right place. Do-it-yourself financial planning is a feasible technique to secure your retired life.

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