Just like the seasons, your finances are going to change, and it can sometimes feel as though they’re not entirely within your control. Fortunately, a personal finance audit can empower you to manage your money more effectively and break bad habits that have been holding you back.
Personal finance audits are a good way to get an overview of your financial situation, allowing you to track your spending, saving, and investment goals. An audit shouldn’t make you panic or feel anxious about your financial situation, but rather allow you to objectively view your finances and even congratulate yourself in areas where you’ve done well.
By gaining a thorough understanding of your finances, you can make smarter decisions, assess the areas in which you can improve, and plan for expenses far in advance.
Regardless of your situation, it’s a smart idea to perform a personal finance audit at least once a year. The end of the year is a great time to do an audit so you can get plans and goals in place for the following year.
If you find there’s a regular strain on your finances or you’ve recently undergone a financial hardship, you may want to consider auditing more frequently. A quarterly audit may be the most beneficial.
Performing a personal finance audit is a relatively quick and painless process. Make sure to cover these areas
While performing a personal finance audit, you must have access to all of your financial records. A holistic financial audit includes organizing and analyzing the following:
Every life stage calls for a different approach to budgeting and financing. Earlier in life, you may find yourself financing vehicle costs or your education. Later on, you may find yourself prioritizing retirement. Here are some of the most common future expenses to plan for.
If you’ve performed a financial audit and you’re ready to start saving, our Founder’s Card can help you on your way. You’ll earn 2%* or 1.5% cash rewards on every purchase you make, and unlike other cards, there are no category restrictions, no annual fees, and no expiration on rewards. Learn more and apply today.
*You can earn 1.5% cash rewards on purchases. You can earn 2% cash rewards on purchases if you maintain a PSECU checking account and qualifying monthly direct deposit(s) of at least $500. See the Visa® Founder’s Card and Visa® Alumni Rewards Card Rewards Program Terms and Conditions for full details.