3 Reasons Why You Need a Consistent Financial Goal Check-In

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We’ve officially reached June, and as we hit the 6-month mark, it’s important to start evaluating our financial goals. Many times, individuals will create financial goals, forget about them and won’t reconsider reevaluating until it’s too late. One of the best things you can do for your financial journey is to be proactive instead of reactive! Whether you choose to do a yearly financial goal check in OR a semi-annual, here are some reasons why it’s important AND how you can get started.

Track Financial Goal Progress

Regularly assessing your financial goals allows you to track your progress over time. It provides a tangible measure of how far you’ve come and helps you stay motivated by celebrating achievements, no matter how small. Seeing positive progress can reinforce good financial habits and encourage continued effort towards your goals. Some realistic goals you can set for yourself can be:

  • Creating and Maintaining an Emergency Fund: Save an amount equal to three to six months’ worth of living expenses in an easily accessible savings account. This fund serves as a financial cushion to cover unexpected expenses or income disruptions.
  • Retirement Savings: Aim to contribute a certain percentage of your income to retirement accounts like a 401(k), IRA, or Roth IRA. Set a target amount to save each year to build a sufficient nest egg for retirement.
  • Budgeting and Expense Tracking: Establish a budget to track your income and expenses regularly. Set specific spending limits for different categories and strive to stay within those limits to achieve better financial control and discipline.
  • Education and Skill Development: Invest in your education or skill development to enhance your earning potential and career opportunities. Set aside funds for courses, certifications, or workshops that can help you advance in your field or pursue new career paths.
  • Insurance Coverage: Review your insurance coverage and set a goal to obtain adequate protection for yourself and your family. This may include health insurance, life insurance, disability insurance, and property insurance.
  • Charitable Giving: Allocate a portion of your income towards charitable donations or philanthropic causes that are meaningful to you. Set a target amount or percentage of your income to give back to the community and make a positive impact.

Identify and Adjust to Life Happenings

ife is unpredictable, and circumstances can change unexpectedly. Conducting a financial goal check-in allows you to assess whether your goals are still realistic and relevant in light of any changes in your personal or financial situation. You may need to make adjustments to your goals, timelines, or strategies to adapt to new circumstances, such as changes in income, expenses, or investment performance. Regular check-ins enable you to identify potential challenges or obstacles early on and proactively make course corrections to stay on track towards your goals.

Some changes to be aware of that may effect your financial situation could be expansion of family, health changes, job changes or loss, transportation changes, homeownership, inflation and more. It’s always important to consider realistic adjustments and understand that changes are normal!

Maximize Opportunities

Setting financial goals and having a set time to check in, allows for you to update information and see potential opportunities to save money. Opportunities for financial growth or optimization may arise unexpectedly. By conducting regular financial goal check-ins, you can take advantage on these opportunities and make informed decisions to maximize your financial potential. Whether it’s taking advantage of favorable market conditions for investing, refinancing loans at lower interest rates, or leveraging tax-saving strategies, staying proactive enables you to seize opportunities that align with your long-term financial goals. Consider the following:

Monitor Interest Rate Trends: Keep a close eye on interest rate movements and market conditions. When interest rates drop significantly below the rate on your existing loan, it may be time to consider refinancing. By staying informed about interest rate trends, you can identify favorable opportunities to refinance and potentially secure a lower interest rate, reducing your monthly payments or total interest costs over the life of the loan.

Improve Your Credit Score: A higher credit score typically translates to better loan terms and lower interest rates. Before refinancing, take steps to improve your credit score by paying bills on time, reducing outstanding debt, and correcting any errors on your credit report. A stronger credit profile increases your chances of qualifying for the most competitive refinancing offers, maximizing your potential savings.

Compare Lenders and Loan Offers: Don’t settle for the first refinancing offer you receive. Shop around and compare loan offers from multiple lenders to find the best terms and rates that suit your needs. Consider factors such as interest rates, loan terms, closing costs, and customer service reputation. Request loan estimates from different lenders and carefully review the details to identify the most cost-effective refinancing option.

Overall it’s important for your financial situation to continue to look at and reevaluate your financial goals set. Since we are at the 6-month mark, there is no better time than today to start!

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