Are You Prepared? A 10-Item Spring Financial Checklist to Keep You on Track

1. Revisit your savings rate

   1. The goal is to ensure that you meet the expectations you’ve set for yourself. Depending on your scenario, you may only need to save 10% of your income, whereas someone else may be playing catch-up and need to save 30%. I like to start with the assumption that most people must save around 20% of their net income for retirement and adjust from there.

   2. Things that improve your net worth but don't count as saving for retirement.

      1. Home down payment savings

      2. New car savings

      3. Paying down debt

      4. College savings

2. Review your credit report

   1. I like to use annualcreditreport.com at least once per year to ensure there are no credit cards or loans in my name that I am unaware of.

3. Set work and income goals for yourself

   1. If you are married, I recommend communicating these goals to your significant other and making a plan for how you intend to reach those goals. This should also help you decide if your current income trajectory is satisfactory for the work you are doing and the lifestyle you want. If not, then it may be worth considering a job change.

   2. These conversations should also inform your current spending goals for the year. How much do you intend to spend on cars, house, trips, clothes, etc.

4. Consider if you are using the best bank for your needs?

   1. Most people have large savings accounts sitting in bank accounts earning less than 1%. Consider an online bank like Ally for your savings accounts to earn a competitive interest rate (3-4% as of 5/2025). My clients use Altruist for their savings accounts, and it has one of the most competitive rates I’ve found, earning 4%. I’ve listed the banks I recommend in my blog post “Bank Account Tier List for North Carolina Residents”.

5. Read a financial book

   1. This is arguably the most important item on the list. Even if you use a financial planner, it will help your conversations and goal setting with them to be more productive when you understand the playing field a bit more. Some books I recommend are below...

      
      

      1. The Total Money Makeover by Dave Ramsey - The beginning of your financial journey

      2. The Millionaire Next Door by Thomas Stanley & William Danko - Step two of your financial journey

      3. The Psychology of Money by Morgan Housel - Step three of your financial journey

      4. Flash Boys by Michael Lewis - Fun/Entertaining

6. Update your net-worth statement

   1. This should be done at least once per year and is used to track your savings and investment growth in one number. If your net worth didn't grow as fast as you thought it should, then why not? Were your savings low, was there an unexpected expense, were returns low? And what can we do to hedge against that slow growth in the future?

7. Write down your financial goals (1-3 years)

   1. This is your vision board for cars, weddings, trips, houses, kids, net worth, etc. If you have a significant other, share it with them. If you have a cat, be sure they see it. You need an accountability partner with these goals. This is not a bragging session or a woe-is-me conversation. Communicate the goal and ask for a follow-up every six months or so to stay accountable.

8. Review your annual credit card spending

   1. See if it aligns with expectations or if you have sticker shock. If you are shocked by how much you spent over the past 12 months, dig into the numbers and see where you overspent so you can behave differently this year. Set a goal for the current year and track it after the first 6 months of 2025 to see your progress. If the situation is more extreme then it may be worth tracking every 2-4 weeks.

      
      

9. Review employer benefits

   1. Do they offer an HSA (health savings account)? Do you have disability insurance (long-term or short-term)? Or life insurance? Maybe there’s free pizza every Friday, but you didn’t read the fine print. Pour a glass of your favorite tea, coffee, or wine and read over your work benefits to be sure you are maximizing the benefits available to you.

      
      

10. Say no to something

    1. Whether it’s a trip on the edge of affordability or you don’t want to go, the new car you don’t need, the commitment to that board position, or the one more thing you can barely fit on your plate. Learn to say no. This is something I struggle with and will be working on in 2025.

    2. Then, talk with yourself about what you will replace that thing with. Maybe it’s marginal time or money to make life smoother, time to walk with your friend or family member around the block, or a little more sleep on Saturday mornings.

    
    

Closing

Being intentional with your finances is never a waste of time, especially when it’s as sparse as once every 6-12 months. Time flies, and small adjustments made today can mean hundreds of thousands of dollars in net-worth difference by the time you want to retire.

I hope you found the above list helpful, and as always, have a great week!