A Checklist to Get Your Financial Life on Track

A Checklist to Get Your Financial Life on Track

• Taxes
• December 07, 2020

"A few small steps can get you back on track. “Think of it as being the CEO of your own home,” says UBS financial advisor Tracy Byrnes. “You don’t need to know where the Dow closed, but you do need to know the big picture.”

That big picture entails compiling a list of your financial situation. Getting organized isn’t always fun, but it is satisfying. Barron’s worked with advisors to determine the basics of what every woman should know—and what, in their experience, they often don’t. Here’s how to tackle it like a boss.

Your Income Statement

Income: Get a snapshot of your household’s monthly and annual income, both before (gross) and after (net) taxes.

Key questions:

• Are you earning more or less than last year? How dramatically does your annual income change year to year?

• How much investment income do you expect to have this year?

• Are you expecting income from unusual sources, such as a one-time bonus at work, an inheritance, or withdrawals from a retirement account?

Expenses: Get a snapshot of your household expenses, focusing on individual bills and categories where you spend the most.

Key questions:

• What expenses have increased or decreased in the past year, and what are your projections for the next year?

• How much do you save every month and where do you put it?

• What areas of your spending can go toward saving more and paying down debt faster?

https://www.barrons.com/articles/this-checklist-will-get-your-financial-life-on-track-51607120210?mod=past_editions