Get a Financial Check Up

If your car gets a regular tune-up, shouldn't your finances get one too? A financial check up can help offer you lifestyle insights and guide you to make better decisions.

Why Get a Financial Check Up?
A financial check up has two compelling benefits. One, it can give you a realistic picture of your current finances. You'll learn if you have enough savings, what your actual net worth is and if your finances can support your current lifestyle. Secondly, it can empower you to make more informed decisions for the future. Can you afford that dream vacation? Is it time to get that kitchen-remodeling project back on track?

How to Begin: Arrive at a Realistic Snapshot
The first step is to assess your current situation. Think of your finances as a balance sheet — some items, like your assets and income, are "inputs." Spending, on the other hand, is an "output." A close look at your finances will give you a realistic snapshot of what comes in and what goes out.

• Assess your income and assets. Many people under or over-estimate their net worth and income. To make an accurate estimation, you should look at all the relevant sources of income and assets. Your salary, bonus, interest earned from investments and even the value of your car are relevant and should be included in your calculations.
• How much are you spending? Gather all your checkbooks, bank statements and credit card statements. These offer you only a partial view of your spending. There are many small cash expenses that are deceptively small and may be burning a hole in your wallet. Restaurant tips, taxi rides, and change for parking meters are just some examples. Use this interactive calculator to give you a better idea of your spending. Once you get an overall picture, you'll understand if you're spending too much and where you can begin to save.

Set Attainable Goals and Plan Ahead
Once you have a snapshot of your assets, income and expenses, you'll be able to set goals that are more realistic and attainable. There are two types of goals you need to think about:

• Set your short-term goals. These goals are the quick fixes you need to set the foundation for a better future. You'll need to identify areas of saving, establish saving goals and choose liquid investments that give you easy access to cash. Here are some useful hints on choosing short-term investments.
• Plan for your long-term goals. Savvy investors know that every day counts. Even if your retirement or your children's education is years away, you still need to prepare for it now. This means thinking of a realistic approach towards retirement plans, IRAs or 529 accounts. Learn more about planning ahead and preparing for the future.

A Painless Check Up
You don't have to make an appointment or wait in line. Just visit our Money Management Basics Planning Guides to start your financial check up today.