When was the last time you took inventory of your personal finances? It’s easy to get things set in place and then just ignore them. Who really wants to continually review all the facets of personal finance anyway? It takes so much time.
Well, here is the thing – the pace of life is fast. Because of that, it’s easy to let things slip by. When it comes to our money, we may be missing out on opportunities to improve on the things we have in place and save money in the process.
And in the grand scheme of things, it doesn’t take as much time as you think to do a thorough review. It will be worth it compared to the consequences that might come should you miss something important.
The idea of taking inventory of your financial life is not new. King Solomon in the Bible was the wisest man who ever lived. In the book of Proverbs he wrote this:
“Be diligent to know the state of your flocks, and attend to your herds; for riches are not forever, nor does a crown endure to all generations.” (Prov. 27:23-24)
We cannot assume just because something was once a good deal, investment or financial goal that it will continue to be so. Our life circumstances change so we should be on the cutting edge of awareness about these matters.
Your Yearly Personal Finance Review
Here are five key areas of our personal finances that my wife and I review at least once a year: