Let's make 2025 the year where we get in the best financial shape possible! As physical fitness begins with an assessment of our health, our financial health needs to begin with such an assessment. How financially fit are you?
Financial Fitness—Examination
Like any good fitness plan, it starts off with a look at where you stand today and then setting resolves to make improvements. To get started, here is a Financial Fitness Checkup Checklist. It will identify some areas of your financial life that might need to be "shaped up." It's a very simple worksheet that should take about 5-10 minutes to complete. Once you're done, I strongly recommend we schedule some time to resolve any fitness "challenges" you might have. I hope you will find the checklist enlightening and motivational. Taking steps now to improve your financial fitness could last you throughout the year and beyond.
You are probably fit in some areas while others might need some work. This checkup covers all the important aspects of your life: family, goals, business or work, health, money, estate, retirement, and your future. You complete the checkup by answering each statement with a simple 'Yes' or 'No.' There's also a space for you to write any notes that affect the issue described. Once you have done this assessment, here are some tips to help you get your finances organized in 2025.
Financial Fitness—Organization
Financial organization is foundational to a healthy financial life. Financial paperwork generally falls into the following categories: investments, taxes, credit cards and loans, college savings, retirement savings, insurance, and estate planning. Separating documents into categories helps you to better manage each facet of your financial life more readily. Financial organization saves time and money by avoiding possible late fees and having necessary documents readily available for tax season, let alone the avoidance of the stress that comes from piles of disorganized bills and paperwork. Financial organization also facilitates better decisions on investments, budgeting, debt, and investment planning. Having a system in place for organizing your financial records is necessary, but the method you use is not as important as having a system. Being consistent is the key to any system.
Financial Fitness—Consolidation
Consolidate all your bills, statements, policies, and other documents that are delivered online with documents that are printed. Saving folders on your computer and tracking bills each month from online banking websites, third-party bill pay, and website document storage platforms helps to simplify your financial organization. Combining all your different financial documents into one space enables you to be more aware of your financial situation in real-time. Consolidating responsibilities also helps to establish a rhythm for your financial fitness. For couples, clearly establishing responsibilities for financial matters is an important priority. If one spouse manages the finances, the other spouse should be informed about what is going on financially, where important documents are stored, and the passwords for all online accounts.
Financial Fitness—Elimination
Getting rid of bills that are from prior years helps to tame the financial organization. But which documents should you keep, and which ones should you toss? The IRS recommends retaining tax returns and financial data that supports your tax returns for seven years. Paper bank statements, investment account statements, and credit card statements can be shredded after a year, especially if they can be accessed online in the future if necessary.
Having sound financial systems and practices in place helps you to better maintain your financial fitness so your finances do not get out of shape. Let's make this a financially fit year! As always, let us know how we can serve you by being a better steward of what God has given!
Yours for Faithful Stewardship,
Jeff Rogers, CEP®, CKA®
Founder & Chairman