Learn about the importance of developing a financial self-care routine, setting financial goals and staying on top of annual financial tasks, analyzing rate of return and adjusting portfolios, minimizing expense ratios and managing finances, and prioritizing self-care for financial success.
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Quick takeaways
Conduct an annual check-in to review tax withholdings, update insurance plans, monitor investment accounts, and obtain a free credit report.
Pay bills on time, keep a buffer in your checking account, review bank and credit card activity, and practice daily self-care habits for financial well-being.
Deep dives
Annual Financial Check-In
One important aspect of financial health involves conducting an annual check-in to ensure you're on track with your goals. This includes reviewing your tax withholdings, updating insurance plans, checking your investment accounts, and ensuring you're taking advantage of any available benefits. Additionally, obtaining a free credit report from each credit bureau annually can help you monitor your credit and address inaccuracies.
Regular Financial Maintenance
On a monthly basis, it's important to pay your bills on time and keep a buffer in your checking account to avoid overdraft fees. It's also recommended to review your bank and credit card activity for any fraudulent charges and to track your progress towards your financial goals. Furthermore, taking care of yourself through daily habits such as journaling, affirmations, and self-reflection can have a positive impact on your financial well-being.
Periodic Financial Assessments
In addition to the annual and monthly check-ins, there are several tasks that should be done a few times a year. These include getting a credit report, reviewing your debt, and checking your tax withholdings. For self-employed individuals, setting up a tax savings account and saving a percentage of each income can help prepare for tax payments. Regular assessment of your investments, including comparing your rate of return to market indicators and monitoring fees, is also essential.
There are things we're supposed to do routinely for our health — brush our teeth, shower and exercise. There's a version of that for financial health, too. We'll talk about what those tasks are — and also go beyond the number crunching to talk about mental health and finances.