How often should you review your finances?
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BY JANAHAN KUMARALINGAM

For some, checking in with finances is part of a weekly – or even daily – routine. For others, it’s more a case of ‘set and forget’. Whatever your usual habits, the current pace of change merits a more regular review of your finances.

Markets are moving fast

Whether your investment portfolio is based in Australia or includes a mix of overseas assets, it will certainly have been affected by the turbulence of COVID-19. As markets move, it’s important to keep up-to-date with what this means for your investments. Depending on the impact on your specific portfolio, you might need to reconsider your investment horizon or risk appetite to ensure you get the most from your money. It’s not about changing your investment strategy on a monthly basis, but about making sure the impacts of turbulent markets are reflected in your long-term investment horizon and financial plans.

Personal circumstances are changing

Let alone the impact on the global markets, families across Australia are feeling the effects of COVID on a personal, individual basis. Unemployment, changes to property markets, and different levels of lockdown have impacted financial goals, objectives, and priorities. It’s important to review your finances in line with your current circumstances, and redesign your short- and long-term goals. Regular review will keep you accountable, and make sure you’re communicating about your circumstances to loved ones.

Scenario planning

A regular review of your finances means you can be ready to face ongoing uncertainty or unusual circumstances with confidence. As you review, try to look ahead to the next few months and consider what you would do in certain situations. It’s prudent to have an emergency fund just in case the worst should happen. You might also take the opportunity to review your insurance to make sure you’re covered for unforeseen eventualities.

Keep your finger on the pulse

Staying up-to-date with the world at the moment can feel totally overwhelming, but having a good awareness of what’s going on both in Australia and overseas will help as you decide on your next financial move. Try to absorb the information in the easiest way for you, whether that’s by reading the newspaper, listening to podcasts, or consulting with experts.

If you’d like to review your finances more regularly, and want tips on how to do that, or further support and advice, I’m always happy to discuss your needs and find a solution that works for you.

Any advice is general in nature only and has been prepared without considering your needs, objectives or financial situation. Before acting on it you should consider its appropriateness for you, having regard to those factors.

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