10 Tips for Assessing Your Financial Goals and Identifying Areas of Concern

This article maps out 10 tips for assessing your financial goals and identifying areas of concern so that you can reflect on how your financial objectives are taking shape and help guide you to identify areas that require your attention. Using a financial checklist is easy and pain-free!

Things to keep in mind:

  1. Budget

Budgeting is an easy way to track spending and see what your money is being spent on, whether you’re using an excel spreadsheet, app, or simply just writing it down in a notebook. Make specific categories into which expenses can fall, like transport, household, and day-to-day life. This makes it simple to see where you can cut back.

  1. Credit Score

Knowing your credit score and checking the information provided on the report is necessary to achieve your goals. A credit report is free to request from a credit bureau.

  1. Update Your Will

Whether you need to create one or merely amend it – this is important as it makes sure that all your assets, investments, and possessions go to beneficiaries that you have selected. This can also assist in a smooth transaction of your assets to your heirs.

  1. Revisit Your Insurance Cover

Review all your policies annually to keep track of the premiums and coverage amounts. Important questions to ask yourself:

  • Are my limits suitable?
  • Are there discounts I can take advantage of?
  • Can I get a better rate that gives me the same coverage?
  • Are my beneficiary nominations correct?
  1. Tax Management

Taking advantage of tax breaks available to you can improve your overall financial position and stand you in good stead for the future. Make sure you top up your retirement annuities and tax-free savings accounts before the 28th of February each year.

  1. Portfolio Rebalancing

Aligning your asset allocation to your investment goals is essential to managing a portfolio and generating long-term growth. Regular reviews and rebalancing are essential to making sure your investment portfolio is on track to achieve what you’ve set out to do.

  1. Contribute Towards Your Savings

A direct deposit into your savings account is a great way to start a consistent savings plan. Ensuring the direct deposit comes off your paycheck guarantees that the money goes straight into the savings account – what you don’t see you won’t spend! Starting as soon as possible is key, even if the amount is small at first.

  1. Plan Towards Being Debt-free

To be debt-free starts with paying off your bad debts like short-term debt and credit cards with high interest. Understand the difference between good and bad debt.

  1. Create Both Short- and Long-term Goals

Short-term goals are set to be achieved in 12 months or less while long-term goals span from 12 months or more. Everyone’s goals differ, however, setting a goal makes it more likely for you to save towards the goal and make it a reality!

  1. Understand Your Retirement Position

Understanding what your cash flow requirements will be when you get to retirement age is a great way to assess what changes you need to be making to your overall investment portfolio and balance sheet.

Chrizanne Botha

Ready to review your portfolio? Contact Apio Wealth to find out how we can help you.