As the eagerly
awaited holiday season gets underway, the end
of the year is a great time to get a financial
health checkup to make sure your finances are on track. With regular checkups, you can fix small problems before they become big
issues.
This
year-end, keeping financially healthy is especially important
due to many economic uncertainties related to inflation, inventory shortages, as well
as the expiration of COVID relief programs
put in place more than a year ago to help people manage
through the pandemic. Your
Financial Health Check Up Like
a physical health checkup, a
financial checkup examines your vital signs to be
sure all is well when it comes to your financial health and
wellness. Do you
have an emergency savings account? How do your credit
card balances look? Are you tracking monthly income and expenses? What does
your credit score and history look like? These are a few of
the vitals reviewed during an end-of-year financial
checkup. From an
overall budget review to managing credit card debt, the caring,
NFCC-certified counselors at GreenPath will conduct a full review
of your current financial fitness and provide recommended next
steps for improving your financial health. A
financial checkup guides you to: - Review Your Financial
Goals: Has there been a significant life change this past year? A
change in jobs, a marriage, divorce, home purchase or other big
change can affect your overall financial picture. A
checkup is a good time to assess whether your current financial
goals sync up with your overall situation.
- Understand Options to
Move Forward after Relief Programs Expire: Loans that were deferred as
part of COVID-related relief programs need your attention. Deferments provided borrowers with
a little breathing room, but now that the temporary pause
in
payments has expired, a checkup is a good
opportunity to understand options, and take a closer look
at not only any loans that were on pause, but also
your entire financial picture.
- Manage Income and
Expenses: One of the best ways to cope with
inflation is to take the time to prioritize monthly spending. A
spending plan helps to ensure that what you spend doesn’t
exceed what you make each month as prices rise. A
financial checkup gives you a better understanding of
your income and expenses. It can also be a time to set
a spending plan to keep your finances on track and
start saving for future goals.
- Pay Down Debt: A
checkup is a good time to explore options to help you pay down
credit card debt as well as options for managing other debts that may be
on the horizon – such as expiring forbearances on mortgages or student
loan payments.
- Assess Your Credit: Are you looking
to take out a mortgage or make another large purchase in the New
Year? A checkup is a great time to review your credit report to see
where you stand, and get tips to improve your score
moving forward.
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