Let's Focus on Wellness


not just your physical well-being.

The beginning of a new year is usually when we evaluate our lives and decide what to do with the coming year. It’s also a time to focus on wellness, which isn’t just about your physical well-being. We visit the doctor annually for physical health check-ups, but what about your financial wellness? It’s easy to let our financial health go unchecked in these hectic times. It’s crucial to thoroughly examine your finances at least once a year and with every major life change. There are many aspects to evaluating your overall wellness –

 Wellness Wheel

What is a Financial Health Checkup?

A financial health check-up is a review of your finances to determine how well your money is working for you. It can help you spot areas for improvement and opportunities to save as you work toward your financial goals. The four main components of a financial health check are:

1. Analyze Your Budget

First, identify all sources of income, including monthly salary, hourly wages and investments. Is it enough to cover your monthly expenses? Is it enough to allow for saving for the future? Where is your money going each month? Review your spending habits to identify areas where you can potentially save. Think in terms of needs and wants or essentials and nice-to-haves. Consider your debt next:

  • Total outstanding debt
  • Interest rate on each credit card, loan or line of credit
  • Progress in paying down debt

Look for opportunities to convert or consolidate higher-interest credit card debt into a lower-cost personal loan or home equity line of credit (HELOC).

2. Check Your Credit Report

Your credit report affects your ability to borrow money and get favorable interest rates. Review your credit report for accuracy at least once a year. You can request a free copy from each of the three major credit bureaus annually: Equifax, Experian and TransUnion. Visit http://www.annualcreditreport.com or call 1-877-322-8228.

3. Set Financial Goals

Check out common financial goals by life stage and pick a few to aim for.

Student

  • Rent an apartment
  • Buy a car
  • Cover school tuition and expenses
  • Travel

Professional

  • Save for retirement
  • Buy a house
  • Lease a boat

Parent

  • Protect your growing family financially
  • Pay for kids’ education
  • Leave a legacy

Retiree

  • Travel
  • Pursue hobbies and passions
  • Spend more time with family and friends
  • Give back to the community

4. Plan Long Term

Think beyond today to the coming months and years. Are you setting aside enough to pay for an emergency or hoping to get lucky? Try putting something aside every month, even if it’s not much. Now is also a good time to evaluate your insurance coverage, too:

  • Health
  • Life
  • Auto
  • Boat/RV
  • Home