Just as you schedule annual physicals to monitor your health, your finances deserve the same regular attention. An annual financial checkup helps you catch problems early, celebrate progress, and adjust your plan as life changes.
The best time for a financial checkup? Right now. Whether it's January, mid-year, or your birthday—pick a time and make it an annual tradition.
Why Annual Reviews Matter
What Regular Checkups Do
| Benefit | Impact |
|---|---|
| Catch problems early | Fix small issues before they become big ones |
| Track progress | See how far you've come toward goals |
| Adapt to change | Adjust for new circumstances |
| Stay motivated | Celebrate wins and recommit to goals |
| Find opportunities | Discover tax savings, better rates, new strategies |
What Happens Without Reviews
- Subscriptions you forgot about drain your account
- Insurance coverage becomes inadequate
- Beneficiaries are outdated
- You pay more than necessary for services
- Goals drift without accountability
💡 Pro Tip: Schedule your financial checkup for the same time each year—perhaps around your birthday or New Year. Put it on your calendar with a recurring reminder.
The Complete Financial Checkup Checklist
Part 1: Net Worth Snapshot
Your net worth is the foundation of your financial picture.
Calculate it:
| Assets | Amount |
|---|---|
| Checking/savings accounts | $_ |
| Investment accounts | $_ |
| Retirement accounts (401k, IRA) | $_ |
| Home value | $_ |
| Vehicle value | $_ |
| Other assets | $_ |
| Total Assets | $_**** |
| Liabilities | Amount |
|---|---|
| Mortgage balance | $_ |
| Car loans | $_ |
| Student loans | $_ |
| Credit card debt | $_ |
| Other debt | $_ |
| Total Liabilities | $_**** |
Net Worth = Assets - Liabilities = $_****
Compare to last year: Is it growing? By how much?
Part 2: Budget Review
Examine where your money actually went.
Review Questions:
| Question | Check |
|---|---|
| Did you spend more or less than earned? | ☐ |
| What categories exceeded budget? | ☐ |
| Where can you cut back? | ☐ |
| Are subscriptions still valuable? | ☐ |
| Are automatic payments still correct? | ☐ |
Action Items:
- Cancel unused subscriptions: Review bank/credit card statements
- Negotiate recurring bills: Internet, phone, insurance
- Adjust budget categories: Based on actual spending patterns
- Set up automation: If not already in place
Part 3: Emergency Fund Check
Your financial safety net deserves regular attention.
| Checkpoint | Status |
|---|---|
| Emergency fund balance | $_ |
| Months of expenses covered | _ months |
| Target (3-6 months) | $_ |
| Gap to close | $_ |
If below target:
- Increase automatic contributions
- Direct next bonus or tax refund to emergency fund
- Find temporary spending cuts
Part 4: Debt Assessment
Track your progress toward debt freedom.
| Debt | Balance | Interest Rate | Monthly Payment |
|---|---|---|---|
| Mortgage | $_ | _% | $_ |
| Car loan | $_ | _% | $_ |
| Student loans | $_ | _% | $_ |
| Credit cards | $_ | _% | $_ |
| Other | $_ | _% | $_ |
| Total | $_**** | $_**** |
Questions to Answer:
| Question | Action |
|---|---|
| Can any debt be refinanced at lower rate? | Research options |
| Are you on track for payoff goals? | Adjust payments if needed |
| Should you accelerate any payoffs? | High-interest first |
| Are you avoiding new debt? | Review spending habits |
Part 5: Retirement Savings Review
Check your progress toward retirement goals.
| Item | Amount/Status |
|---|---|
| Total retirement savings | $_ |
| Annual contributions (this year) | $_ |
| Employer match received | $_ |
| Target by current age | $_ |
| Gap to target | $_ |
Savings Benchmarks by Age:
| Age | Target (x Salary) |
|---|---|
| 30 | 1x |
| 40 | 3x |
| 50 | 6x |
| 60 | 8x |
| 67 | 10x |
Action Items:
- ☐ Maximize employer match (free money!)
- ☐ Increase contribution rate by 1%
- ☐ Review investment allocation
- ☐ Consider catch-up contributions if 50+
📌 Key Takeaway: If you're not getting the full employer match, you're leaving free money on the table. Fix this immediately.
Part 6: Investment Review
Ensure your portfolio aligns with your goals and timeline.
Portfolio Check:
| Question | Answer |
|---|---|
| Current allocation (stocks/bonds) | _% / _% |
| Target allocation | _% / _% |
| Need to rebalance? | Yes / No |
| Expense ratios reasonable? | Yes / No |
| Tax-efficient placement? | Yes / No |
Rebalancing Rules:
- Consider rebalancing if allocation drifts 5%+ from target
- Review at least annually
- Use new contributions to rebalance when possible (avoid selling)
Fee Check:
| Account | Total Expense Ratio |
|---|---|
| 401(k) funds | _% |
| IRA funds | _% |
| Taxable funds | _% |
Target: Under 0.50% total; under 0.20% is excellent.
Part 7: Insurance Review
Ensure you're adequately protected without overpaying.
Health Insurance:
| Question | Status |
|---|---|
| Is your plan still the best option? | ☐ |
| Have your healthcare needs changed? | ☐ |
| Are you using HSA if eligible? | ☐ |
| Deductible still appropriate? | ☐ |
Life Insurance:
| Question | Status |
|---|---|
| Coverage adequate? (10-12x income if dependents) | ☐ |
| Beneficiaries current? | ☐ |
| Need to increase/decrease? | ☐ |
Auto/Home Insurance:
| Question | Status |
|---|---|
| Coverage adequate for current situation? | ☐ |
| Shopped for better rates recently? | ☐ |
| Deductibles appropriate? | ☐ |
| Bundling discounts applied? | ☐ |
Other Insurance:
| Type | Have It? | Need It? |
|---|---|---|
| Disability | ☐ | ☐ |
| Umbrella | ☐ | ☐ |
| Long-term care | ☐ | ☐ |
Part 8: Beneficiary Review
Don't let outdated designations cause problems.
Check Beneficiaries On:
| Account | Primary | Contingent | Updated? |
|---|---|---|---|
| 401(k) | _ | _ | ☐ |
| IRA | _ | _ | ☐ |
| Life insurance | _ | _ | ☐ |
| Bank accounts (POD) | _ | _ | ☐ |
Update if:
- You got married or divorced
- Someone passed away
- You had children
- Relationships changed
⚠️ Warning: Beneficiary designations override your will. An ex-spouse listed on your 401(k) will inherit it regardless of what your will says.
Part 9: Credit Check
Review your credit health annually.
| Item | Your Status |
|---|---|
| Credit score | _ |
| Change from last year | +/- _ |
| Errors on report? | Yes / No |
| Accounts you don't recognize? | Yes / No |
Action Items:
- ☐ Get free credit reports (annualcreditreport.com)
- ☐ Check all three bureaus (Equifax, Experian, TransUnion)
- ☐ Dispute any errors
- ☐ Consider credit freeze for protection
Part 10: Tax Planning Review
Prepare for tax season and look for opportunities.
| Question | Status |
|---|---|
| Withholding appropriate? (Owe/refund <$500) | ☐ |
| Contributing to tax-advantaged accounts? | ☐ |
| Opportunities for tax-loss harvesting? | ☐ |
| Major tax events this year? (Sale, bonus, etc.) | ☐ |
| Documents organized for filing? | ☐ |
Part 11: Goals Review
Evaluate progress on financial goals.
Short-Term Goals (1-2 years):
| Goal | Target | Progress | On Track? |
|---|---|---|---|
| $_ | $_ | ☐ | |
| $_ | $_ | ☐ |
Medium-Term Goals (3-10 years):
| Goal | Target | Progress | On Track? |
|---|---|---|---|
| $_ | $_ | ☐ | |
| $_ | $_ | ☐ |
Long-Term Goals (10+ years):
| Goal | Target | Progress | On Track? |
|---|---|---|---|
| Retirement | $_ | $_ | ☐ |
| $_ | $_ | ☐ |
Questions:
- Do goals need to be updated?
- Are new goals emerging?
- Should any goals be reprioritized?
Part 12: Estate Planning Check
Ensure documents are current and accessible.
| Document | Have It? | Current? | Location Known? |
|---|---|---|---|
| Will | ☐ | ☐ | ☐ |
| Healthcare directive | ☐ | ☐ | ☐ |
| Financial POA | ☐ | ☐ | ☐ |
| Trust (if applicable) | ☐ | ☐ | ☐ |
After Your Checkup: Action Plan
Prioritize Your Next Steps
| Priority | Items to Address | Target Date |
|---|---|---|
| Urgent | ||
| Important | ||
| Nice to have |
Schedule Follow-Ups
| Item | Date |
|---|---|
| Next annual checkup | _ |
| Quarterly portfolio review | _ |
| Insurance renewal review | _ |
Your Financial Checkup Action Plan
-
Block time: Set aside 2-3 hours for your review
-
Gather documents: Statements, policies, tax returns
-
Work through the checklist: Section by section
-
Calculate net worth: Track year-over-year progress
-
Create action items: Prioritize what needs attention
-
Schedule next checkup: Make it annual
-
Celebrate progress: Acknowledge how far you've come
Your annual financial checkup is an investment in your future. An hour or two now can save thousands of dollars and countless hours of stress later. Make it a non-negotiable part of your year.