Quarterly checkups are important, especially when it comes to your finances. They can help you stay on track and make necessary adjustments along the way.
In this post, we’ll outline four financial checkpoints you should review each quarter. We encourage you to take some time each season to go over these key points so you can stay financially healthy.
It's a good idea to review your credit report each quarter to make sure the information is accurate and up to date.
You're allowed one free credit report from each of the three major credit reporting agencies per year. You can get your reports at annualcreditreport.com.
Your credit report contains information about your credit history and borrowing habits. It's used by lenders to decide whether to give you a loan and by property owners and insurers to decide how much to charge you for rent or insurance.
If you find any errors on your credit report, you can dispute them with the credit bureau.
Your debt-to-income ratio is one of the most important factors lenders look at when considering a loan. This is simply your total monthly debt payments divided by your monthly gross income.
Lenders want to see that your debt payments are not too high in relation to your income. This helps protect them in case you run into financial difficulty and can't make your payments. A high debt-to-income ratio could also mean you're stretching your budget too thin and are at risk of defaulting on your loans.
Reviewing your debt-to-income ratio each quarter will help you stay aware of this important number and make sure it doesn't get too high. You can take steps to bring it down, like consolidating your loans or cutting back on expenses.
Take a look at your spending patterns and ask yourself some tough questions. Are there areas where you could be spending less? Are there any unnecessary expenses that you could cut out?
It's important to be mindful of your spending and adjust as needed. Being proactive about your finances is the best way to ensure that you're on track for the future.
If you're not sure where to start, our free budget planner can help you get started. It's a great tool for tracking your expenses and setting financial goals.
Take some time to review your financial goals and see if they still align with your current situation. If they don't, it's time to make some changes. Maybe your goal was to save up for a down payment on a house, but you've since realized that buying a home is not the right decision for you right now. That's OK! Your goals can and should change as your life changes.
The most important thing is that you stay proactive and honest with yourself about your finances. Don't let yourself fall into bad habits or get discouraged. If you need help, don't be afraid to ask for it. We're here to support you every step of the way.
No one is perfect when it comes to their finances, but regularly reviewing your financial status is a key part of staying on track. These four checkpoints will help to provide you with a holistic view of your current financial situation and where you can adjust. Quarterly reviews will help you stay on top of your finances and make sure you're heading in the right direction.