If you have achieved everything on this financial wellness checklist, you are doing great!
Banking
- My paycheck is auto-deposited to my bank account.
- I have checking and savings accounts with no monthly fee.
- I have a High Yield Savings Account for my Emergency Fund and my short-term goals fund.
Budgeting
- I write down my financial goals and review them at least once a year.
- I consistently spend less than I make.
- I have a budget built on the 50/30/20 model: 50% for fixed expenses, 30% for flexible/optional expenses, and 20% for savings.
- All my bills are paid automatically on time.
- I pay off my credit cards every month.
- I know how long it will take to pay off my debts (student, car, credit card).
- I am current with all my tax returns and payments.
Saving
- I have an Emergency Fund that could provide 3-6 months of living expenses if I were unemployed.
- I have a savings plan for my next major purchase (car, wedding, house, education, etc.)
- My money is automatically moved to the appropriate savings accounts every month or every paycheck.
Employer benefits and retirement
- If my employer offers retirement saving matching, I am contributing enough to get all the matching.
- I contribute to a retirement fund (through my employer and/or a Roth IRA).
- I participate in my employer’s Employee Stock Purchase Program. I know how this stock fits in my overall portfolio and I have criteria for when to sell it.
- I have considered the pros and cons of getting a low deductible health plan and contributing to a Health Savings Account.
Investing
- I have a brokerage account at a high quality, low cost brokerage.
- I have an investment strategy for each of my goals.
- My investments do not make me anxious.
- I review my investments on a regular schedule.
- I am continuing to learn more about investing.
Protect yourself and your financial future
- I have health insurance and disability insurance.
- I have renters or homeowners insurance.
- I have auto insurance if I have a car.
- I check my bank and credit card statements every month to detect fraud.
- I check my credit report once a year to check for fraud or errors.
- I have two-factor login authentication on all critical accounts, like my financial accounts.
- I use a password manager to keep track of long, complex passwords.
- I have an Advanced Health Care Directive indicating who will make medical decisions for me if I am unable.
You can find more information on all these topics in my books: Your Money in Your 20s for a basic financial foundation and Your Money in Your 30s for the more advanced.
