{"id":701,"date":"2019-01-18T22:20:06","date_gmt":"2019-01-18T22:20:06","guid":{"rendered":"https:\/\/ladderlife.com/blog\/?p=701"},"modified":"2021-07-01T20:45:20","modified_gmt":"2021-07-01T20:45:20","slug":"financial-check-up-simplified-approach","status":"publish","type":"post","link":"https:\/\/ladderlife.com/blog\/2019\/01\/18\/financial-check-up-simplified-approach\/","title":{"rendered":"Your Family\u2019s Annual Financial Check-Up: A Simplified Approach"},"content":{"rendered":"\n
by Erica Gellerman, <\/strong>The Worth Project<\/strong><\/a><\/p>\n\n\n\n We all know that an important part of staying physically healthy is getting regular check-ups. Similarly, an important part of staying financially healthy is giving your money regular check-ups as well. If the idea of diving into the numbers sends you running, don\u2019t worry. It doesn\u2019t have to be that difficult. And maybe with this simplified approach it could almost be\u2026fun? Whether you take a few hours one afternoon to do all five steps, or do one task a day for five days, this simple approach will have you feeling on top of your money game. Let\u2019s start by getting a snapshot of your overall financial health. The goal of this step is to get a really good idea of where you are financially. Once you know your starting point, it\u2019s easier to see where you want to make changes. Grab a piece of paper or open up a spreadsheet program and track down these numbers:<\/p>\n\n\n\n With those numbers in front of you, it will be easier to see if there is anything that needs extra attention, like paying down more debt or saving a higher percentage of your income. There are likely some things that you did really well last year and some things that didn\u2019t go so smoothly. Now is the time to identify what to repeat and what to change. Did you adopt any new spending habits that you\u2019re proud of and want to continue (like bringing lunch to work every Monday)? Were there any money emergencies that you\u2019d like to be better prepared for? For example, when your property tax bill was due were you scraping together the funds to pay it? As you\u2019re going through this, remember to be kind to yourself. If you had some missteps or things didn\u2019t go quite like you\u2019d planned, you can create a plan this year to avoid making the same mistakes. Now comes the fun part: what do you want to achieve this year? Do you want to save a certain amount of money for a down payment on a house? Maybe save up to take the family on a great summer vacation? Or maybe you want to finish paying off your debt so you can breathe a little easier with your monthly budget. Set your goal and then calculate how you\u2019re going to get there. For example, let\u2019s say you\u2019re eager to finish paying off your $12,000 of lingering student debt. You calculate that to pay it off in the next 12 months, you need to make $1,000 monthly loan payments. With that number in mind you can start brainstorming what you can do or what habits you can create to make that loan payment each month. Now that you\u2019ve taken the time to look at your financial picture and set some new goals, make sure that you\u2019re protecting yourself and your loved ones for the future. Did anything in your life change last year? If so, you\u2019ll want to make sure all of your insurance policies are up to date to protect your assets. Review your homeowners or renters insurance, your health insurance, and your auto insurance. And don\u2019t forget to take a hard look at whether you have enough life insurance<\/a>. With Ladder, you\u2019re able to easily ladder up or ladder down your policy<\/a>. That is, you can add more coverage or reduce coverage based on your current need. Did you recently purchase a home? Or are you preparing to welcome a new baby? You may want to ladder up by applying for more coverage to ensure enough protection for your family. Or have you recently paid off your mortgage? You may want to consider laddering down to reduce the amount of life insurance you have. Checking in on your policies at least annually will help to ensure that you keep your assets protected.
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<\/p>\n\n\n\n1. Get your financial snapshot <\/strong><\/h2>\n\n\n\n
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<\/p>\n\n\n\n2. Check in on the last year<\/strong><\/h2>\n\n\n\n
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<\/p>\n\n\n\n3. New year, new goals<\/strong><\/h2>\n\n\n\n
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<\/p>\n\n\n\n4. Review your policies<\/strong><\/h2>\n\n\n\n
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<\/p>\n\n\n\n5. Check your credit<\/strong><\/h2>\n\n\n\n