The Ultimate May Financial Planning Checklist

May is a perfect time of year to reassess your financial goals and ensure you’re on track to get to where you want to go. Whether you’re planning for retirement, saving for a big purchase, or just looking to improve your financial health, this consolidated financial planning checklist for May will provide you with some ideas and tasks you can work on this spring.

1. Review Your Budget: Start by reviewing your current budget or creating one if you haven’t already. Take a close look at your income and expenses, and identify areas where you can cut back or reallocate funds. Adjust your budget as needed to align with your financial goals.
2. Check Your Credit Score: Your credit score plays a crucial role in your financial well-being. Use an app such as Credit Karma to review your score for any errors or discrepancies. Take steps to improve your credit score if necessary, such as paying down debt and making payments on time.
3. Evaluate Your Investments: Review your investment portfolio to ensure it’s properly diversified and aligned with your risk tolerance and financial goals. If your circumstances have changed or you feel that your allocation has drifted from your target portfolio, revisit or work with a financial professional to adjust.
4. Assess Your Insurance Coverage: Evaluate your insurance coverage, including health, life, home, umbrella and auto insurance. Make sure you have adequate coverage to protect yourself and your assets in the event of an emergency.
5. Set Savings Goals: Set specific savings goals for the remainder of the year, whether it’s building an emergency fund, saving for a vacation, or contributing to a retirement account. Break down your goals into manageable steps and track your progress regularly.
6. Plan for Taxes: If you have filed your tax return, use your 2023 return to plan for 2024. Review your tax situation and make any necessary adjustments to minimize your tax liability.
7. Create or Update Your Estate Plan: Estate planning is essential for ensuring your legacy is left as you wish and you are protected. Review or create essential documents such as wills, trusts, medical directive, and powers of attorney, and make sure they reflect your current circumstances and wishes.
8. Assess Your Financial Health: Take stock of your overall financial health, including your net worth, debt-to-income ratio, and emergency savings. Identify areas for improvement and take proactive steps to strengthen your financial position.
9. Plan for Major Expenses: Anticipate any significant expenses coming up, such as home repairs, tuition payments, or vehicle purchases. Start setting aside funds into various buckets to avoid financial strain when these expenses arise.
10. Seek Professional Advice: If you’re unsure about any aspect of your financial situation or need help achieving your goals, consider seeking guidance from a financial advisor or other professional.

If you have already set financial goals for the year, now is a great time to benchmark your progress and use this financial planning checklist to make significant strides toward achieving your financial goals. Remember that financial planning is an ongoing process, so continue to monitor your progress and make adjustments as needed to stay on track for success. If you have any questions, email info@shermanwealth.com or schedule a complimentary intro call here.