As we enter a New Year, I want to remind you about something I consider to be a very important aspect of any well-balanced financial situation. Make sure you do frequent financial checkups to insure you are on the proper path to develop your assets effectively. Situations can change very quickly in life and you must consider, on a regular basis, the composition and structure of your personal financial goals, tools and investments. There are many issues to consider. Things like getting rid of unnecessary debt, developing proper spending habits, checking your insurance needs, examining your taxes and determining whether or not you need to rebalance your portfolio. I’m sure you can come up with a number of other areas that, on a personal level, will positively or negatively affect your financial life. Sift through it all very carefully.

There are a number of ways to determine the best methods of handling money that didn’t exist even a decade ago. Today most of us have personal computers that can be used to assist your financial development. There are a number of software programs that can guide you by showing where your money is currently going. These programs can help you determine the best methods of using your cash to enhance your investments. Determine how much is coming in, how much is going out and establish where the money is going. It’s really that easy. Once you know those specific facts, you can make your adjustments.

One question you really should ask yourself is whether the investment techniques you have been using are actually working for you to build financial wealth for you and your family. If you’ve had problems, changes in the market trends, an alteration in your personal lifestyle (a new baby, a recent move, a new job, you’ve just married, etc.), then make the necessary changes to make sure your money is working to fit your life’s changes and goals. If interest rates are down, consider refinancing your home, if you can. Today, if you have good credit, interest rates are as low as this country has seen in more than a decade. Plus, make sure you build at least three to six months worth of living expenses just in case of an emergency, if you don’t already have that amount put away safely.

Other areas of interest to your personal financial life include insurance coverage. If your agent hasn’t called you recently, pick up the phone and request that you take an inventory of your coverage (home, life, auto) and adjust where needed. And for goodness sake, examine your credit report at least once a year. It might be a good idea to actually contact the credit agencies twice a year, especially if you are about to make a major purchase.

Just as you need to develop and then redevelop your short- and long-term personal goals throughout the year, so it goes with the state of your financial well-being. This should not be an unpleasant chore but rather something enjoyable. Remember, by conducting these occasional checkups, you are insuring that positive financial results are more likely to be attained than negative results.

As we’ve seen during the past year or so, anything can happen, which can force you off your fiscal course. Events that can make a difference in your life occur at a moment’s notice. Make sure that when unforeseen events occur, you make the needed corrections that will rebalance your financial life; plan to make a quick check every three months or so. This is all part of goal setting that I believe is so important to leading a balanced and prosperous life. Stay focused and make sure you perform your personal checkups on a regular basis.