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22ND NOV 2008
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Every year, students could help their finances by giving them an annual check up. We all know how important an annual checkup is to our health, but did you know that an annual financial checkup can be nearly as important as an annual physical?
Checking up on your financial health every year is a great way to determine if your finances are on track. If everything is going according to plan, you will be able to rest easy knowing that your finances are well in order. If something is amiss in your financial plan, your annual financial checkup will give you the opportunity to take steps to improve the situation by making the necessary adjustments.
An annual financial checkup is also a good idea for another reason. Changes in lifestyle, such as marriages, divorces, and the birth of children, can have a significant impact on our financial life. The financial goals and investment mix that were perfect for an unmarried man may be wholly inappropriate for a married man with a new family to support. The annual financial checkup is a great time to review your situation and make the necessary adjustments.
The annual financial checkup is also a good time to compare the performance of your various investments to the industry averages. For instance, holders of stock market mutual funds may want to compare the returns of those funds with the appropriate stock market index, while holders of bond funds will want to compare their returns to other similar bond funds.
If the performance is good, all you have to do is continue with what you have been doing, and make any necessary adjustments in your investment mix. If, however, your investments have not been keeping pace, your annual financial checkup can provide a good time to change your funds.
An annual financial checkup also provides a good way to plan for taxes. Tax planning can be difficult, and the time to plan for next years taxes is now. By reviewing your finances every year, you will be able to make the changes needed to lower your tax burden while maximizing your profit.
www.1stcall.com
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Helping Students to Create a Budget That Works For Them.
Provided by The Student Zone (United Kingdom) |
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