Regular financial check-up as a way out of social distress is not just a matter that can be wished away by anyone that wants to live a happy economic life these days of global economic dilemma. This is because, which ever way one looks at it, the financial melt down will continue will be on the front burner for quite some time.

There is no gainsaying the fact that for one to stay healthy always and meet the basic necessities of life, it is always quite necessary for one to undergo regular medical check-up on one’s body in order to find out what is needed to be put right physically and the person should not wait until one falls sick and out of action otherwise there might be irreparable loss to one’s healthy living and money making ventures.

As it is with the body, a regular financial check-up is paramount for the general economic well-being and this is what this piece of writing is all about. The first issue one has to look into is budget fashioning. While it is true that this is generally common with governments and blue chip companies worldwide, it is also quite important for both small scale enterprises as well as individuals to carry out their own regular financial check-up. This will help a lot in guiding one’s spending according to the accrued income at a given time.

There are, obviously, many companies and government agencies too that assess the performance of their budgets at the end of every financial quarter in order to ensure that it is well implemented and followed the planned strategy. Experts, however, are of the view that the only way to ensure that personal budgets are strictly followed is to effect some checks on them on a regular basis and that by means of a financial check-up at least every three months.

Some economic and financial experts are of the view that individuals also should carry out financial check-up periodically so as to identify their goals, evaluate changes in their social situations, protect their assets, identify their investment performances and review their retirement plans as well. The other way forward is to check the budget position every three months in order to identify lapses which they should adjust in order to suit the prevailing social and financial circumstances.

It is not wise at all that one should have to wait till the end of the year before carrying out the necessary financial check-up otherwise an irreparable damage could have been done in the course of the year. Likewise, it is quite important for people to review their financial situations just like they go for their regular medical check-up so as to ensure that they do not overshoot their financial situations and ensure that allocation to viable projects are spent accordingly.

An annual financial check-up, no doubt, is a good opportunity to review the performance of the budget over the past twelve months of the year in order to ensure that they are still in order. The right time, however, for the annual financial check-up is before the year runs out in order to take advantage of any tax-saving strategies and if that is not possible during the busy holiday period, it should then be immediately after the New Year festivities.

As you do your financial check-up, it is quite necessary to diligently assess your financial goals and reflect on the failure or progress you made during the year and then rectify the necessary errors or blunders that must have been committed all along. You should also find out if your goals for the year had been met or changed and if so, it is necessary that you make a revision and adjustment where necessary..

While it is true that changes in the financial situations of individuals could also make a strong impact in their social well-being, this should also be monitored in their budgets if they want to make any financial headway and satisfaction in the years ahead.

Author's Bio: 

Ade Adenekan is the Executive Director of Pan-African Reconciliation Centre in Lagos City, Nigeria and a leader in the sector in the global economy. If this article is of any appeal to you, you can get more of it at his blog: www.adenekan.blogspot.com and site: www.wealthconcern.com