How to conduct a yearly financial review.

Naturally, the end of the year is when people take stock. It’s also a process people shy away from,either because they feel they haven’t done well or they find it a hard process. If we fail to address mistakes from the past, we will be bound to repeat them.

Here a few easy steps you can follow.

Step 1

Be honest with yourself.

Avoid the temptation of focusing on inconsequential things. What did you do right and what did you do wrong? Do a check of all your assets and liabilities.

Are you owing people? Stop dodging their calls. Chin up and sort it out.

Step 2

Enjoy your wins

So you did not have a great year. That’s okay. Embrace the little things that you did well. They will give you the strength to work on being better.

Step 3

Set new goals.

In order to do better, you have to aim higher. Draw up a ten year plan. Don’t be content with yesterday’s wins.

A new year is always a great time to make changes to your plans

Lots of things would have changed. Have you upgraded jobs? That’s more pay as well as a higher propensity to consume.

Did you have another child? Those are more expenses that will kick in. Book a session with a personal finance coach.

Step 4.

Get an accountability partner

If you are going to do better next year, try getting yourself an accountability partner. Someone who gently pushes you towards your goal.