7 Things You Should Know About Your Finances

in Financial Planning, Personal Finance Essentials by

For successful financial planning, it is critical to understand what you’ve got, how much you make, what you owe, how you spend, and how you are investing for the future. If you have a solid foundation, then a thorough assessment of your position will make that abundantly clear. If you face serious challenges, clearly understanding them will empower you to make adjustments and significantly improve your situation and financial future.

Here is a good, basic checklist of things you should know about your financial life:

  1. The value of your assets
  2. The value of your liabilities and debts
  3. Your net worth (assets minus liabilities)
  4. How much you spend on a monthly and annual basis – and where you spend it
  5. How much you earn after tax on a monthly and annual basis
  6. Your asset allocation
  7. How much you pay in fees

This isn’t a complete list of items that could influence your long-term financial goals, but it’s a good start. Knowing where you stand will not only help you improve your finances, but you will also feel better emotionally when you have a plan and are in control.

To learn more about this – and 3 steps to managing your money, download the free Personal Capital Guide to a Better Financial Life.

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Craig Birk, CFP®

Craig Birk, CFP®

Craig Birk leads the Personal Capital Advisors Investment Committee and serves as the Chief Investment Officer. His focus is translating improvements in technology into better financial lives. Craig has been widely quoted in the Wall Street Journal, Bloomberg, CNN Money, the Washington Post and elsewhere. Prior to Personal Capital Advisors, he was a leader within the portfolio management team at Fisher Investments, helping assets under management grow from $1.5 billion to over $40 billion. Craig graduated from the University of California at San Diego and has earned the Certified Financial Planner® designation.

One Response

  1. Anonymous

    With all the changes the current administration is doing and planning to do…..i have to say stick to the old fashion savings.
    Taxation % changes, stocks goes up and down ,
    changes in IRS rulings, real estate up and down, etc.
    No amount of investment planning strategy by financial consultants will help when all else fails.


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