What Is Financial Check Up: Here's An Explanation And Benefits

What Is Financial Check Up (Towfiqu barbhuiya-Unsplash image)

YOGYAKARTA - This era, financial check-up is an initiative that needs to be carried out by every worker. So, what is financial check-up?

The reason why workers have to have a financial check-up is because you usually need a health protocol to go to a doctor, right?

Well, it's the same with financial conditions. Even though you have good financial literacy and are disciplined in managing savings, you need to check it regularly so that unwanted things don't happen.

Unfortunately, there are still many workers and residents who do not understand the value of this one activity. Therefore, this time we will discuss the financial check-up.

As has been explained, checking the financial situation is actually quite similar to checking up the fitness of the body.

However, when you want to carry out a health check-up, you generally have to come to the hospital and meet a doctor directly.

Well, it's different with financial check-up. This initiative does not require paying for financial advisory services or other financial advisors. Because, you can do it yourself at home.

However, when before reviewing it further, what exactly is a financial check-up?

Reporting from The Balance, financial check-up is an opportunity to review your financial situation over the past 12 months and ensure that you are still on the right track in managing finances.

There are several things that you need to check when carrying out financial checks, including debt, assets, smooth asset ratios, cash flow, investments, and saving ratios.

Not to forget, you must also justify that your emergency funds are still guaranteed.

Financial check-up is at least done once a year or after a big event, such as marriage or childbirth.

If you live with your partner or family, you can carry out financial checks with them. However, if you don't live with other people, you can do it yourself.

Financial Check Up Benefits

Did you feel that your income was running out of speed? For example, you get paid on the 1st of each month. After that, in the middle of the month you have run out of money.

This can take place because you don't regularly record expenses. Meanwhile, there are already various financial application options that can help you record income and expenses.

By carrying out a financial check-up, you can review your biggest expenses for the past year.

Not only that, you can also remember, do you spend a lot of money to buy things that you don't use?

For the next financial check-up, namely as a method to control expenses.

After recognizing the amount of expenses over the past year, you can make a commitment to yourself to be more economical.

You can refrain from buying various things that you bought a lot of last year.

It's a good idea to design finances in the future. Do you plan to get married, have children, buy a house, or a car? If so, the plan could be part of your financial planning.

Calculate your future needs. After that, based on the results of financial checks, determine the best method to achieve that goal.

How To Financial Check Up

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