You schedule your annual physical. You go to the dentist twice a year. Your next eye doctor appointment is penciled in before you ever leave the office. You might even know exactly how many steps you took yesterday. But when was the last time you gave your finances a checkup?
Much like your physical health, your financial health can benefit from regular attention, even when nothing feels wrong. An annual financial checkup is an opportunity to step away from day-to-day spending and look at the bigger picture: what’s working, what may need attention, and what has changed over the past year.
“Most people don’t need to overhaul their finances. They just need to check in,” says Betsy Hutchins, CFP®, CRPC™, MHA, founder of Forward Financial Planning in Germantown.
So, what should that checkup look like? Betsy recommends starting with a simple question: Where is your money going?
Most people know how much they earn, but it can be harder to say exactly how much they’re saving or where the rest is going. Reviewing bank and credit card statements, recurring expenses, savings, and debt can reveal whether your everyday financial decisions still reflect your priorities.
For high earners, this can be especially important. As income grows, you may have more opportunity to save and invest, but you may also have more room for lifestyle expenses to grow unnoticed. If your income increased this year, did your savings increase with it? If you paid off a major debt, where is that money going now?
The goal isn’t to scrutinize every cup of coffee. It’s to determine whether your money is going where you actually want it to go.
Your paycheck deserves a closer look, too. Not just the amount deposited into your checking account, but the actual pay stub and benefits behind it.
Fall is an especially timely opportunity to do this, as many employers approach open enrollment. Tax withholding, retirement contributions, employer matches, health insurance, disability coverage, Health Savings Accounts, and Flexible Spending Accounts are all worth revisiting rather than automatically making the same elections year after year.
“You worked hard for those benefits,” Betsy says. “Make sure they’re working hard for you.”
Next, ask whether your savings still match your life.
A lot can change in a year. You may have received a promotion, paid off student loans, welcomed a child, bought a home, started a practice, or reconsidered when you would like to retire. Your financial strategy should be flexible enough to change with you.
That might mean reviewing retirement contributions and other savings goals, but it could also mean looking at your emergency reserves. The amount that felt comfortable several years ago may no longer cover the same number of months of expenses today.
Sometimes a checkup confirms that you’re still moving in the right direction. Other times, it reveals that your money is following a plan designed for a version of your life that no longer exists.
Protection is another part of the financial picture that is easy to overlook. Homeowners or renters insurance, auto coverage, life insurance, and disability insurance are often selected and then forgotten. As income, assets, and family responsibilities change, coverage may need to change with them.
Beneficiaries and estate documents deserve the same attention. Marriage, divorce, children, the death of a loved one, a move, or a significant change in assets can all be reasons to revisit existing plans and make sure they still reflect your wishes.
Finally, Betsy encourages clients to ask perhaps the most important question of the entire checkup: What has changed?
Has your career changed? Your family? Your priorities? Are you caring for an aging parent? Thinking about starting a business? Hoping to retire earlier? Has a goal that felt important several years ago become less important today?
“A strong financial plan doesn’t have to be super complex,” Betsy says. “It’s about clarity, consistency, and confidence that you’re making decisions that align with your goals.”
You don’t attend your annual physical because something is wrong. You do it to figure out where you stand, address what’s changed, and to take care of yourself going forward. Your finances deserve the same attention.
Choose a time each year to look at the full picture. Fall and open enrollment can provide a natural reminder, but tax season, your birthday, or another easy-to-remember date can work just as well.
You may finish your checkup with a few things to address. You may discover an opportunity you hadn’t considered. Or you may simply confirm that you’re on the right track.
Financial health doesn’t require financial perfection. Sometimes, it just requires taking the time to check in.
To learn more or to schedule a free consultation with Forward Financial Planning, visit Fwdfp.com.
By Betsy Hutchins, CFP®, CRPC™, MHA
