You’ve done the hard yards – assessed your financial situation, defined your goals, developed a strategy, created a plan and put that plan into action.
Now that the job is done, you deserve a pat on the back, a night out on the town or a day at the beach. But don’t get too comfortable!
There is no such thing as set and forget in managing your financial affairs. You must vigilantly maintain the solid footing on which you have placed your finances. Over time, circumstances change, goals change, tax laws change and financial markets of all types change (yes, even real estate under performs sometimes).
Taking an active approach to managing your financial situation must become a part of your lifestyle, not a short term activity that you take up every once in a while like a fad diet or exercise.
The good news is maintaining your financial situation doesn’t have to take up a lot of your time and effort and it can provide personal satisfaction and peace of mind much like maintaining a welcoming home or tidy garden.
The regular monitoring and review of your financial situation involves more than just checking the performance of your investments. Other things that need to be considered are:
- Have my circumstances or financial goals changed?
- Is my financial risk still within acceptable limits?
- Is my insurance coverage still adequate?
- Is my estate plan still appropriate?
- Are my investments balanced or structured for optimal tax benefits?
Two things you will clearly see in your first review of your overall financial situation are
- How well (or not) your plan performs and
- How well (or not) you have been following your plan!
You don’t want these reviews to be a burden or seem like a daunting task so it is important to define a simple, easy to understand system so that you can quickly assess all the necessary areas and make adjustments as needed.
Module 9 of MaM’s 9 Step Money Program will help you protect your money into the future so that you can enjoy the results of your savings and investments.