12 Important Questions for a Financial Checkup
What is Financial Checkup?
The Financial Checkup is an opportunity to review your financial situation over the past year and ensure that you are still managing your money effectively. It is a good time to take stock of your income, expenses, savings, investments, and debt, and make any necessary adjustments to your financial plan to ensure that you are on track to meet your financial goals. This can help you avoid any potential financial pitfalls and make the most of your money.
Despite its status as a major economic power, Australia faces challenges such as stagnant wages, economic slowdowns, and increasing housing costs that are negatively impacting its economy and the wellbeing of its citizens.
According to the Melbourne Institute’s “Taking the Pulse of the Nation” report, 1/3 of Australians experienced financial stress due to the state of the economy. Additionally, 1/5 of Australians reported mental distress due to the country’s financial situation. The report also revealed a correlation between employment type and financial stress, with those on fixed-term contracts and those who are self-employed being more likely to experience financial distress. On the other hand, those in the hospitality and IT sectors were less likely to feel stress.
Feeling the pressure of economic struggles can be incredibly distressing. This can result in both financial and emotional stress. It can also be unsettling to realize that you are not in control of your finances. In an economy facing financial and personal difficulties, you may end up dealing with additional problems such as a lack of savings, which can have potentially life-threatening consequences.
If you are not in control of your finances, you may experience mental stress. However, even in a challenging economy, you can take control of your financial situation. It is crucial to perform a financial checkup regularly, which is to assess and manage your finances to maintain a sense of stability and happiness despite economic conditions.
In order to maintain financial stability, it is crucial to consult with a financial planner as soon as possible to get the best advice and guidance on managing your finances. The earlier you seek help, the more effective your financial plan will be.
It is advisable to perform a financial checkup on yourself before seeking help from a financial planner. If you are unable to answer “yes” to the following questions, it is likely that your finances are in a negative state and you should consider seeking professional assistance.
12 Important Questions for a Financial Checkup
- Are you able to pay your credit card bills in full by the due date?
- Do you stick to a monthly budget?
- Are you able to sleep easily, knowing you will be able to pay your bills by the due date?
- Do you know the total amount of your home loan?
- Are you making your loan repayments on time?
- Do you know what you will do if you lose your job tomorrow?
- Do you have income protection?
- Are you sure about your child’s financial future?
- Do you have life/total and permanent disability insurance?
- Are you sure about your financial position?
- Are you and your life partner sure about your finances?
- Are you aware of how much you hold in super?
In order to thrive in Australia’s fast-paced economy, it is essential to have a financial plan and regularly conduct financial checkups. The financial landscape is constantly changing, particularly during economic downturns, so it is crucial to take steps to protect your financial wellbeing in order to stay ahead of the game.
To protect yourself in a challenging economy, it is crucial to stay informed and plan your finances carefully. One way to ensure that your financial situation is on track is to consult with a financial planner. These professionals can help you create a comprehensive financial plan to help you survive and thrive in a volatile economy. There are many financial planners available in Australia, so be sure to choose one that is right for you.
