Financial Planning

If you’ve taken on the task of mapping out your annual financial plan, you deserve a pat on the back. Making sure you’ve covered all the bases is important to both your short- and long-term financial health. Keeping track of your progress with an annual financial planning checklist makes it easier to see which tasks have been completed and which you still need to tackle.

Key Takeaways

An annual financial plan allows you to determine your financial situation at the given moment.

It should include looking at all your assets and liabilities, deciding what your goals are, and what methods you intend to employ to achieve them.

Make sure you check off every strategy you’ve considered, even if you decided not to pursue it

What Is an Annual Financial Plan?

An annual financial plan is a way to determine where you are financially at this particular moment. This means taking into consideration all your assets—how much you get paid, what’s in your savings and checking accounts, how much is in your retirement fund—as well as your liabilities, including loans, credit cards, and other personal debts. Don’t forget to include things like your mortgage or rent, plus utility bills and other monthly expenses. This snapshot should also factor in what your goals are and what you’ll need to accomplish in order to get there. This can include things such as retirement planning, tax planning, and investment strategies.

The Bottom Line

An annual financial plan is an exceptionally valuable tool for your life (and peace of mind) today and for your future. Best-case scenario: You’ve checked off all the items on this punch list by now. If not, don’t hesitate to pencil in time on your calendar to do so.