As yearly health check-ups are important, it equally important to conduct annual financial check-ups. Unfortunately, most of the people in the UK do not really find it essential to get their financials checked every year. What people forget is that check-ups provide a way to know that you are on a right track and whether your finances are healthy or not. As bigger problems are detected early, smaller problems are time consuming. Having regular financial check-ups help you detect these small problems and prevent them from becoming major issues later in future.
Moreover, having a regular financial check-up provides an early indication if things are not going as planned. Consider this example, who knew mis-selling of PPI policies could become one of the biggest scandals in the UK. Even today there are millions of people struggling to receive a compensation amount they deserve. Conduction a regular financial check-up provides thorough details of your personal finances. Having a financial check-up done could tell you where you were mis-sold PPI or not. Once it is found that you were mis-sold the policy, you can move on and make a claim.
If you are yet to be convinced why financial check-ups are important, here are five more reasons:
Reason 1: Income < Spending = Trouble
One of the primary reasons to monitor your finances is to make sure that you are sticking to your budget plan and not over spending. Keeping a track of your current accounts ensures that you are aware about where the money is going. Even though banks have applications that provide details about your transactions, none of these applications tell you that you are spending too much. Financial check-ups help you keep track of your expenses.
Reason 2: Tracking Your Financial Goals
Everyone has certain financial goals they wish to achieve by the time they retire. Alternatively, financial could be as immediate as saving up enough money to buy a new house. For most other, it could be saving up of a dream holiday, investing for their child’s future, etc. So how can you keep track of your progress if you are constantly avoiding assessing your financial position? One thing is for sure, you will not magically achieve your financial goal if you are not keeping a track on it regularly and just hoping for the best.
Reason 3: Things Change Quickly
Only because you think you have bagged in the best gas and electricity prices few years ago certainly does not mean that you still have a competitive deal today. Insurances companies work on clients that automatically pay the renewal prices without looking for another option or negotiating. For companies that are struggling financially to survive in the market shortly after you have served your contract period will do anything to keep you or sign you up for another contract term.
We understand it takes time to find another best deal suitable for your deals, but don’t forget that everything can be monitored. Your Internet, house insurance, mobile payments, insurance policies etc. – every expense can be tracked and monitored. Also, on the other hand, if you willing to lock yourself in an expensive contract then be sure that you are negotiating the deal.
Reason 4: Investments Need Nurturing
You cannot just ignore your investment options even if you are an experienced professional or a passive investor. Everything from a government policy, world trade movements, competitor behaviour to economy, has some impact on your investments. Just because you think you have secured deals a year ago, does not mean that it is going to keep you safe forever. It is your responsibility to regularly monitor and review your options. By doing this, you are not only securing your finances for the rest of the year but also securing your future.
Reason 5: Peace of Mind
When it comes to finances, ignorance is not bliss. Not having enough money to lead a healthy lifestyle anymore can depress you, and it has depressed a lot of people. Having a financial check-up done assures you that your finances are healthy, and your future is secure. Nothing is as peaceful as knowing that you are on the right track and are working on achieving your future goals.