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What to check monthly
Budgeting should happen consistently and frequently, said Jason Heath, an advice-only financial planner at Objective Financial Partners. “If you really want to get into the weeds on what you’re spending money on, trying to find ways to spend less, that should be a very frequent exercise,” he said, suggesting people do it monthly—or, if they’re new to budgeting, weekly.
Heath said budgeting is especially important for those who have difficulty paying off their credit card on time or hitting their financial goals. Keeping a frequent check could help you see spending patterns and allow for changes to stay on course.
People should also be reviewing their credit card statements to make sure there are no unexpected deductions or charges, said Wendy Brookhouse, certified financial planner and founder of Black Star Wealth. “Make sure that you catch that right away,” she said, so that you are able to fix the problem before it snowballs.
What to check quarterly
Brookhouse said it’s important to check in on your credit score every three months. She suggested reviewing both your Equifax and TransUnion reports. “Believe it or not, they may not always be the same,” she said. “You want to make sure that there’s nothing erroneous on it, identity theft … because even if you found it today, it could take you a long time to get that removed,” Brookhouse said.
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A check-in on subscriptions or charges on accounts, such as Amazon and Apple, should also be on your quarterly to-do list, she said. For example, scrutinizing your Amazon or Apple accounts could help catch any charges for games or movies that your kids may have purchased.
Also, check on subscriptions you may have signed up for trials on and forgot to cancel. “Review your donations,” Brookhouse said. “When I say donations, I mean the things you’re buying and subscribing to that you are no longer using, so you’re in effect donating to the company.”
Then, go shopping every three months for better phone and Wi-Fi plans or even auto insurance. “Make sure you have the right plan for the right price because if your usage has changed or your patterns have changed or there’s new programs out, you may find there’s something better for you and that’s more cost-effective,” she said.
For people who are business owners or have significant taxable non-registered investments, tax planning should be on their frequent checklist, Heath said. “The more complex somebody’s situation is, tax planning is definitely at least a quarterly discussion,” he said.
What to check annually
Checking in on investments is an annual affair, Heath said. “Investments are something you would benefit from looking less frequently,” he said. “For a lot of investors, quarterly or annually is probably enough as far as taking a deep dive on your investment.”
For people who are T4 employees with straightforward deductions, tax check-ins can be done annually, Heath said. However, he said people should plan their taxes proactively instead of retroactively when the tax season for the past year comes around in April. Instead, think about what you need to do for the current tax year while you still have time to take action.
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Most yearly check-ins, such as reviewing your investments or life insurance, should also be reviewed during major life changes, Brookhouse said. “If you had a child, that may change your insurance requirements. If you get divorced, that could be a change,” she said. Brookhouse suggested looking at planning documents, such as checking if your will’s executor is still up to the task and whether the document expresses your current thinking.
Another yearly review to-do should be bank fees. Brookhouse said people should shop around to make sure they can find the lowest fee for their needs, remembering that fees may have crept up over time.
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