Over that last few weeks we have looked at the different financial anxieties Americans experience. We have talked about creating a budget and maximizing your savings to alleviate the fear of not being ready for emergencies. And, we have talked about investing your money to ensure there is enough to sustain you throughout retirement. Now, we are going to look at your finances, specifically reviewing your finances.
As you get older, your life changes. You may have kids, move several times, start new jobs, etc. Everything your situation changes you need to take a look at your finances to see if they still align with your goals. While we said creating a budget and sticking to it was the most important part of financial security, reviewing your finances periodically would have to come in a close second.
When you created a budget, you also created financial goals. If you want to stay focused on your goals and reach your goals, you will have to review your finances on a regular basis to make sure you are still on track. According to the Northwest Mutual study, 82% of Americans believe that finances should be reviewed every six months, but 62% surveyed stated they did not have a financial advisor of any kind. This means that many Americans are going years without reviewing their finances.
Since finances change over time, this is distressing and is a source of some of the anxiety. When you review your finances you are insuring that you are still headed in the direction you need to be going. You may need to change some numbers, such as what is going into retirement or savings.
One option to keep everything in line is to have a financial advisor that reviews your finances for you at least once a year. This does not mean you lose control of your finances, but it gives you someone to get ideas from or talk over investment opportunities.
Another option is to rely on friends or family to help keep the finances on track. They can offer suggestions or guidance on what to invest and maybe even where to invest.
American’s financial fears are not going to disappear overnight, but with some guidance and help from everyone around them they can be reduces over time. All it takes is planning, commitment, and the right advice.