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Writer's pictureAmanda Ash

Your Annual Financial Checklist

If you have taken on the task of drawing up your annual financial plan for 2021, you deserve a pat on the back. If you have not, now is the best time to do so.



Keeping track of your progress with an annual financial planning checklist will bring clarity, focus, and most importantly results for each and every year you use the check-list. It is far too important to be put on the list of 'New Year's resolutions' broken promises. January is the month to establish your annual financial plan and put it on your priority list each year, it’s an excellent time to begin planning what you hope to accomplish financially over the next 12 months.

As your personal milestones shift with each significant chapter in your life, so should your financial goals shift with each milestone. You have to look at your long term and short term financial goals. Here are a few things to include on your annual financial checklist:


1. Prepare your annual spending plan

Putting together an annual spending plan will turn those big, yearly expenses into manageable monthly expenses. Some things to include in your spending plan:

  • debt payments - Car loan, credit card, personal loan

  • education costs - school fees, daycare, books, supplies, extra classes

  • giving - birthdays, charitable contributions

  • housing - mortgage, house maintenance

  • insurance - home, health, auto, life

  • savings - retirement, education, emergency fund, specific goals (i.e. vacation)

  • special occasions – weddings, anniversaries, graduations

Once you have established your annual spending plan, you can work out your monthly spending plan.


2. Personal financial file

Keeping track of all your accounts, paper statements, insurance documents, bills, wills, old tax returns, and more by listing them. This will ensure you can easily locate documents. The advantages of preparing your records include simplifying your finances, reducing stress, being prepared for unexpected events and having more time for fun activities. You will need to identify what to keep, who will maintain the records, where to keep items and when your files should be updated.


3. Review or revise your will

There are numerous times throughout one's life when it is necessary to review and revise a will. Life is unpredictable, and our relationships and decisions can change over time. If your will was written some years ago, it is essential to examine your copy and ensure its contents still reflects your wishes.


4. Insurance policies

The easiest way to prepare to review your insurance policies is to create a one-page policy summary for each policy. By writing down the relevant information in your own template will help you understand it and remember it, making it easier to review. You might want to remove items from your policies or get additional coverage.


5. Bank account fees and charges

Leaving your bank account fees and charges unchecked could cost you several hundred to thousands of Emalangeni a year. If you are paying fees to your bank, find out what they are, what they’re costing you, and how you can put an end to or reduce those costs.


6. Debt repayment plan

Working towards getting debt free and staying in control of your finances is essential to reach your financial goals. By reviewing your income and expenditure annually will ensure you can still cover all of the important things in your debt repayment plan.


7. Savings plan

Review how much you are saving each month, are you comfortable with that amount or do you need to adjust it? Your savings plan should include all your short term goals like your annual vacation or saving for birthday gifts.


8. Emergency fund

This should be separate from your savings plan. If you don't have the cash to cover an emergency, you're taking a big risk because unforeseen expenses are inevitable. If you do have an emergency fund, do you have enough to cover you for 3 to 6 months?


9. Investments

The ultimate purpose of a portfolio checkup is to bring your investments into line with your evolving goals. As a starting point, check to make sure that the target you have set for your investments matches your risk tolerance and financial situation. Revisit your overall investment portfolio in light of any changes in your situation and make adjustments if you think they are necessary.


10. Retirement plan

Many people do not realise how important it is to review your retirement plan annually to reduce any risk of inadequate funds. Whether you are still saving, transitioning into retirement, or already retired you should review your plan to ensure your retirement plans are in line with your current situation.


11. Financial goals

Annual financial planning gives you an opportunity to review your goals, update them (if necessary) and reevaluate your progress since last year. If you have never set goals before, this annual review gives you the opportunity to create them for the first time so that you can get – or stay – on firm financial footing. An annual review will improve the chances you have of fulfilling your financial goals by allowing you to incorporate any personal or economic changes in your financial plan.


12. Consult with your Financial Advisor

You should meet with your advisor at least once a year to get a formal update on your financial situation and to revisit your goals to see if they are still relevant. An annual meeting also provides the perfect time to update your advisor of any changes to your personal situation and bring any issues or concerns to his or her attention.


The value of annual financial planning: You can review and update your goals and monitor your progress in accomplishing them during life’s ups and downs. In the process, you will find that both the small things you do on a daily and monthly basis and the large things you do every year and over the decades will help you achieve your financial goals.



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