Now that a new year is upon us, it’s a good idea to take a look back at the year and see your overall financial picture. If you’re looking for an organized and accurate way to do a financial check up, keep reading below. This article has effective ways to better understand your big picture. 

Important Events

It’s a good idea to start with any important events that went on in your life. Maybe you landed a new job, got married or divorced, added a new person to your family, or purchased a new home. 

Each of these examples can change your bigger financial picture. These events can change your future financial goals, so take into account any of these events to help shape how you spend going forward. 

Define Your Goals

Put down in writing, or at least come up with a specific goal you hope to achieve in the new year. Things like a retirement fund, an emergency source of income for the unexpected, or saving up money for a down payment on a car or house. 

Once you’ve narrowed down your goals, keep track of the progress you’ve made towards them. This could be keeping a spreadsheet or journal to see how you should change spending habits. Once you’ve achieved one of these goals, replace it with another to keep yourself motivated. 

Budget

One of the effective ways to do a financial check up is to have a running budget. This is the easiest way to see your bigger financial picture. 

Good Budget is a free and easy to use budget app that makes it easy to manage your spending. The trick is to create a budget that not only meets your immediate needs, but also leaves room to save toward bigger financial goals. 

Credit Reports

There are three major credit reporting agencies that are required by federal law to give you a free credit report — Equifax, Experian, and Transunion. Go to Annual Credit Report to get a copy. 

Keep in mind, however, that this is just a report, not your score. To get your credit score you’ll need to pay a fee, but it’s a worthy investment for doing a financial check up. 

Knowledge Is Power

Doing a financial check up gives you a better understanding of where you’ve been, and how you can change to get to where you want to go. Once you learn where you can save more money, it’ll be easier to save up for bigger goals you want to achieve in life. So get started soon and pave your way for greater success.