The year is in full swing and it’s the perfect time to evaluate the state of your financial resolutions for 2017. So you’ve developed a plan, which establishes long and short-term financial goals, but following a savings plan is sometimes difficult. Here is a checklist that will help you see whether you are on track to achieve your financial goals.
Have you adopted a savings mentality?
The only way to save is to spend less than you earn. It can be difficult to free up cash in an already tight budget, but developing a savings habit and living within your means is an integral component of achieving financial success.
Take some time to reconsider those unnecessary large purchases and try to save a portion of any financial windfalls that you may receive this year.
Have you accounted for any life changes?
Big life changes can affect your financial goals, which may alter your plan. Each stage of your life comes with its own financial needs. Big milestones, like children and retirement, need to be accounted for in your financial plan. If you have to draw an income or start saving more, then your investments need to be aligned with your new goals.
Have you reduced your tax load?
You could reap the benefits of tax exemptions if you invest in tax-free savings accounts or if you increase your retirement savings. You could benefit from substantial tax deductions and tax-free returns, so it’s wise to do some research on the subject.
Assessing your investments
The health of your investments will determine your financial well-being. Is your investment portfolio adequately diversified? Are your long-term investments earning sufficient returns? Are you regularly informed about the performance of your underlying investments such as the best performing unit trusts, bonds or stocks? What are the risks? If your investments have reached a risk level, which makes you uncomfortable then consult a professional financial advisor to help you.
Do you need to seek advice?
If you’re feeling overwhelmed then seek some advice from a financial planner. There is no need to brave this all alone.