Publication: Chicago Sun-Times (IL)
Author(s): Mark LaSpisa, Special to The Chicago Sun-Times
Date: February 26, 2007
Section: Financial
Page: 50
Q: What should I do every year to complete a financial checkup?
A:Annual financial checkups provide an opportunity for a financial reality check. There are many steps within a comprehensive financial checkup. Here are three basic steps as a starting point.
Begin with the creation of a balance sheet, a listing of all assets and debts. Once completed, subtract debt from assets to determine your financial worth, known as “net worth.” Net worth is how much money you have if everything you owned was sold and turned into cash.
Complete a cash flow statement. That’s a review of all expenses for the previous calendar year broken out by category, by month and for the year as a percentage of income.
Create a budget. Determine the amount of income you want to spend in a category for the new year. Start with high priorities like saving. Don’t forget to think about major purchases and events.
Having completed these three steps, you are ready to speak to a professional. If you complete these updates annually, they will give you more satisfaction and control of your financial future.
Mark LaSpisa is a certified financial planner, and a member of the Financial Planning Association of Illinois
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