Personal Finance Checklist
Addressing the following questions will help you get your financial house in order.
1.Do you check your credit report once a year?
Doing so will alert you to possible errors that could negatively affect your credit rating or potential identity theft activity, such as unauthorized credit card applications. A check of each report from the three major credit reporting agencies can be completed at the website Annual Credit Report.com at www.annualcreditreport.com.
2. Do you have a written budget for yourself?
If you’re in a relationship or have family, do you have a budget covering everyone involved? If not, developing a spending plan will give you knowledge about where your finances go, and direct them to the places of highest use.
3. Do you have an emergency fund?
A cash reserve that will cover about three months of living expenses will help smooth income fluctuations and provide protection for unforeseen circumstances, like a job loss or a health condition.
4. Are you saving at least 10% of your gross income each year?
If that’s not possible, what percentage is achievable? Paying yourself is a good habit to get into, just like tracking your expenses and budgeting for the future.
5. Have you estimated how much money you need to retire comfortably?
Calculators are available at sites such as
Choose to Save® (www.choosetosave.org/ballpark/).
6. Have you set up and started contributing to an individual retirement plan (IRA)?
If you’ve got the money, there is no reason not to invest in an IRA. It will build wealth over the long term by combining the power of compound interest combined with annual tax savings.
7. Do you talk over your finances with your spouse or partner?
Financial conflicts—not low income—are a major cause of divorce and separation. Be honest about your personal finances (your debts). Talk about how you view money (are you a spender or saver), your financial aspirations, how household money will be managed, and how assets should be titled. And listen to your spouse or partner share their views.
8. Do you know if you’re making progress on your financial goals?
The single most useful number to track to see if you are increasing your personal equity over time is your net worth. A net worth statement measures our wealth—all you own (assets), less all you owe (debts)—at a single point. Updating such a document at the same time each year is a good way to determine if you’re reaching your goals. Consider doing this when you’re preparing income taxes, because you are already thinking financially.
Author: Cole Ehmke, University of Wyoming Extension Specialist
Printable PDF: Personal Finance Checklist
