Financial goal checkup: are you on track?

Financial goal setting… sounds kind of boring, right? It’s definitely not the most fun thing, but it can lead to a lot of good things. Whether you’re saving for retirement, paying off debt, or planning for something big and exciting—like buying a new car or a house—clear financial goals will help you get there.

Remember that financial goal setting is just the first step—regularly checking in on your progress is just as important. A financial goal checkup can help you make sure you’re on track to meet your goals. Here’s how to conduct a financial goal checkup and make sure you’re moving in the right direction.

1. Review your financial goals

The first step in a financial goal checkup is to review your goals. Take a look at your short-term and long-term objectives to see where you stand. Are they still relevant, or have your priorities changed? 

Questions to ask:

• Do my goals still line up with my current situation and future plans?
• Do I need to add, remove, or adjust any goals based on changes in my life (e.g., career changes, family growth, health issues)?
• Are my goals specific, measurable, achievable, relevant, and time-bound (SMART)?

Brigit tip: Write down your financial goals and rank them in order of priority. This can help you focus on what matters most and allocate your resources accordingly.

2. Evaluate your progress

Once you’ve reviewed your goals, evaluate your progress toward achieving them. This involves comparing where you are now to where you hoped to be at this point. Look at each goal individually and determine how much progress you’ve made.

Steps to evaluate progress:

• Check savings balances: Look at your savings accounts, retirement accounts, and investment portfolios to see how much you’ve saved toward each goal. Are you on track with your target savings amounts?
• Review debt repayment plans: If paying off debt is one of your goals, review your debt balances and repayment plans. Are you making progress on reducing your debt, or have your balances remained the same or increased?
• Assess spending habits: Evaluate your spending habits over the past few months. Are you staying within your budget and allocating enough money toward your goals, or are there areas where you’ve overspent?

Brigit tip: Use a budgeting app or financial tracking tool to help you analyze your spending and savings habits. This can provide a clearer picture of your progress and help you identify areas for improvement.

3. Identify obstacles and challenges

If you’re not on track to meet your financial goals, it’s important to identify the obstacles or challenges that are holding you back. These could be unexpected expenses, changes in income, or simply a lack of discipline or motivation.

Common obstacles:

• Unexpected expenses: Medical bills, car repairs, home maintenance, or other unforeseen costs can derail your financial plans.
• Income changes: A job loss, reduced hours, or changes in business income can affect your ability to save and invest.
• Lifestyle inflation: Increased spending on discretionary items, dining out, or entertainment can reduce the money available for savings and debt repayment.

Brigit tip: Identify the specific challenges you’re facing and consider how you can address them. This might involve cutting back on non-essential expenses, finding ways to increase your income, or revisiting your budget to ensure it aligns with your current situation.

4. Adjust your budget and savings plan

If your financial checkup reveals that you’re not on track to meet your goals, it’s time to make adjustments. Start by revisiting your budget to see where you can cut back or reallocate funds. Consider increasing your savings rate or finding additional income sources to help you get back on track.

Steps to adjust your budget:

• Reallocate funds: If certain expenses have decreased, consider reallocating those funds toward your financial goals. For example, if you’re spending less on transportation due to remote work, put the extra money into savings or debt repayment.
• Reduce discretionary spending: Look for areas where you can cut back on non-essential spending, such as dining out, entertainment, or shopping. Redirect those funds toward your goals.
• Increase income: If possible, look for ways to increase your income, such as taking on a side hustle, freelancing, or asking for a raise. Use the extra income to boost your savings or accelerate debt repayment.

Brigit tip: Set up automatic transfers to savings accounts or retirement funds to ensure you consistently save each month. Automating your savings can help you stay on track and avoid the temptation to spend.

5. Reassess your time frame

If you’re struggling to stay on track with your financial goals, consider reassessing your time frame. Are your deadlines realistic given your current income and expenses? If necessary, adjust your time frame to make your goals more achievable.

Questions to ask:

• Can I extend the timeline for my goals to reduce monthly contributions and make them more manageable?
• Are there short-term goals that can be adjusted or postponed to focus on long-term objectives?
• How can I break down larger goals into smaller, more manageable milestones?

Brigit tip: Breaking down large goals into smaller, more achievable steps can help you stay motivated and focused. Celebrate each milestone along the way to maintain momentum.

6. Monitor and celebrate progress

Regularly monitoring your progress is key to staying on track with your financial goals. Set up a schedule to review your goals, budget, and savings plan, and make adjustments as needed. This could be monthly, quarterly, or annually, depending on your preferences.

Steps to monitor progress:

• Set regular check-ins: Schedule regular check-ins to review your financial progress and make any necessary adjustments to your budget or savings plan.
• Celebrate milestones: Celebrate when you reach a milestone or achieve a goal. This positive reinforcement can help keep you motivated and committed to your financial journey.
• Stay accountable: Share your financial goals with a trusted friend or family member, or consider working with a financial advisor. Having someone to hold you accountable can help you stay on track.

Brigit tip: Use a financial tracking app or spreadsheet to monitor your progress and keep all your financial information in one place. This makes it easier to see how you’re doing and what adjustments might be needed.

7. Seek professional guidance

If you’re not sure whether you’re on track with your financial goals or need help creating a plan to get back on track, think about seeking professional guidance. A financial advisor can provide personalized advice based on your unique situation and help you create a plan to achieve your goals.

Benefits of professional guidance:

• Expert advice: A financial advisor can offer expert advice on budgeting, saving, investing, and debt management.
• Customized plans: Advisors can help you create a customized financial plan that aligns with your goals and needs.
• Accountability: Working with a financial advisor can provide accountability and help you stay focused on your goals.

Brigit tip: When choosing a financial advisor, look for someone who is a fiduciary, meaning they are legally obligated to act in your best interest.