The Importance of Financial Account Review for Your Wealth Journey

Let’s be honest. When was the last time you really looked at your financial accounts? I mean, not just a quick glance or a monthly check-in, but a thorough, thoughtful review? If you’re like most people, it’s probably been a while. Yet, this simple habit can be a game-changer for your financial health and long-term wealth building. Today, I want to walk you through why a financial account review is so crucial, how it can empower you, and practical steps to make it part of your routine.

Think of your financial accounts as the dashboard of your financial car. Without regularly checking the gauges, you might miss warning signs or opportunities to accelerate your journey. So, buckle up and let’s dive in!

Why a Financial Account Review Matters More Than You Think

You might be wondering, “Isn’t just paying bills and watching my balance enough?” Well, not quite. A financial account review is about more than just numbers. It’s about understanding your money’s story, spotting trends, and making informed decisions.

Here’s why it’s so important:

• Catch errors and fraud early: Mistakes happen. Banks can make errors, and unfortunately, fraudsters are always on the lookout. Regular reviews help you spot unauthorized transactions before they spiral out of control. I know everyone has received either a spam call or text message in the last week. Scammers are always lurking.

• Track your progress toward goals: Whether you’re saving for a home, retirement, or a dream vacation, reviewing your accounts helps you see if you’re on track or need to adjust your plan.

• Optimize your investments: Markets change, and so should your portfolio. A review lets you rebalance and ensure your investments align with your risk tolerance and goals.

• Avoid unnecessary fees: Sometimes, fees sneak in unnoticed. Regularly checking your accounts helps you identify and eliminate these money leaks.

• Stay organized for taxes and estate planning: Keeping your accounts in order makes tax season less stressful and supports your estate planning efforts. We all know Your Wealth Bestfriend loves focusing on taxes and estate planning!

  
  

By making this a habit, you’re not just managing money—you’re actively building and protecting your wealth.

Comfortably reviewing financials on a laptop from the cozy confines of a softly-lit room.

How to Conduct a Thorough Financial Account Review

Now that we know why it’s important, let’s get practical. How do you actually perform a financial account review that’s effective and not overwhelming?

1. Gather all your financial statements

   Collect bank statements, credit card bills, investment account summaries, and any other relevant documents. If you have a more complex financial life you might have to add business documents, real estate financials and retirement information. Having everything in one place makes the process smoother.

   
   

2. Check for accuracy

   Go line by line to verify transactions. Look for any charges you don’t recognize or errors in deposits and withdrawals.

   
   

3. Analyze your spending patterns

   Identify where your money is going. Are there subscriptions you forgot about? Are you spending more than you realized on dining out or entertainment?

   
   

4. Review your investment performance

   Compare your portfolio’s returns against benchmarks. Are your investments performing as expected? Is your asset allocation still appropriate?

   
   

5. Evaluate fees and charges

   Look for account maintenance fees, transaction fees, or penalties. Consider switching to accounts with lower fees if possible.

   
   

6. Update your financial goals

   Life changes, and so should your goals. Adjust your savings targets or investment strategies based on your current situation.

   
   

7. Plan next steps

   Decide on any actions needed—whether it’s disputing a charge, reallocating investments, or setting up automatic savings.

   
   

Remember, this doesn’t have to be a chore. Set aside a quiet hour once a month or quarter, grab your favorite drink, and make it a positive, empowering experience.

Relaxing and listening to a financial podcast while taking notes

Practical Tips to Make Reviewing Your Accounts a Habit

Building a habit around reviewing your accounts doesn’t have to be daunting. Here are some tips to help you stay consistent and make the most of your efforts:

• Set a recurring calendar reminder: Treat it like a meeting with yourself. Consistency is key.

• Use budgeting or financial apps: Tools like Mint, YNAB, or Personal Capital can simplify tracking and alert you to unusual activity.

• Create a checklist: Having a step-by-step guide ensures you don’t miss anything important.

• Celebrate small wins: Did you spot a fee to cancel? Did you find extra money to save? Give yourself credit.

• Get a financial buddy: Share your goals and progress with a friend or family member for accountability.

• Seek professional help when needed: Sometimes, a financial advisor or planner can provide insights you might miss.

  
  

By integrating these habits, you’ll feel more in control and confident about your financial future.

Empowering Your Financial Future Starts with a Simple Step

Taking the time to review accounts is more than just a task—it’s a powerful step toward financial independence. It’s about knowing where you stand, making smart choices, and protecting what you’ve worked hard to build.

Remember, wealth building and estate planning aren’t just for the wealthy or experts. They’re for anyone who wants to live life on their own terms, free from financial stress. And it all starts with understanding your financial landscape.

So, why wait? Grab your financial information, set a date, and start your financial account review today. Your future self will thank you.

If you want to dive deeper into financial education and get personalized support, On My Own Financial is here to help you every step of the way. Because your financial health deserves more than just luck—it deserves a plan.

Until next time!

✨Keep Living Your Healthy Wealthy Life,✨

Your Wealth Bestfriend®️

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Jala, known as Your Wealth Bestfriend®, is a seasoned personal finance writer, attorney, and award-winning Certified Trust & Fiduciary Advisor (CTFA). When she is not running her businesses, teaching, or writing, she enjoys dance parties in the kitchen with her child. Her work has appeared on Business Insider, Experian, Real Simple, The Skimm, Yahoo News, and others.

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