Your Financial Check-Up: Assessing Your Money Health for a Brighter Future 

1. Evaluate Your Budget

Understanding your budget in relation to income is crucial for achieving financial stability and long-term goals. To evaluate your finances, start by reviewing your income sources and categorizing your expenses into fixed and variable costs to identify cost-cutting opportunities and review any outstanding debt.  

Related Resource: How to Create a Budget in 8 Steps > 

2. Check Your Savings

Assess your savings accounts, including emergency funds and retirement accounts. Ideally, you should have at least three to six months’ worth of living expenses in an emergency fund. Create a plan to boost your savings in the upcoming year. 

3. Analyze Your Debt

Review your debts, including credit cards, student loans, mortgages and any other loans. Compare your total debt to your income to see if it is below 36%. Consider strategies to pay down your debt, such as the snowball or avalanche methods. 

4. Review Your Financial Goals

Have you achieved the financial goals you set at the beginning of the year? If not, analyze why. Were your goals realistic? Did you face obstacles, like unexpected expenses? This reflection will help you set more achievable goals for the coming year.

5. Review Your Credit Report

You can obtain a free copy of your credit report from the major credit bureaus — Experian, TransUnion, and Equifax. Check for any errors or discrepancies that could affect your credit score. If you find any issues, take steps to dispute them. A good credit score is essential for securing favorable loan terms and interest rates. 

WAEPA’s Free Financial Wellness Program

WAEPA members have access to a free Financial Wellness Program through our partnership with Ernst + Young (EY). This program includes access to tools and financial advisors to help manage day-to-day finances and work towards long-term goals.