How often should you check your finances? – Money sense

What you should check monthly

Budgeting should be done consistently and frequently, says Jason Heath, a consulting-only financial planner at Objective Financial Partners. “If you really want to know what you’re spending money on, and find ways to spend less, that should be a very frequent exercise,” he said, suggesting people do it monthly — or, if they’re new to budgeting, weekly.

Heath said budgeting is especially important for people who have trouble paying off their credit cards on time or achieving their financial goals. By checking regularly, you can identify spending patterns and ensure changes stay on track.

People should also check their credit card statements to make sure there are no unexpected holds or charges, says Wendy Brookhouse, certified financial planner and founder of Black Star Wealth. “Make sure you catch that right away,” she said, so you can fix the problem before it snowballs.

What you need to check every quarter

Brookhouse said it’s important to check your credit score every three months. She suggested looking at both your Equifax and your TransUnion reports. “Believe it or not, they may not always be the same,” she said. “You want to make sure there’s nothing wrong going on, identity theft … because even if you found it today, it could take a long time to get it removed,” Brookhouse said.

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A check-in of subscriptions or fees on accounts, such as Amazon and Apple, should also be on your quarterly to-do list, she said. For example, if you closely examine your Amazon or Apple accounts, you can spot any charges for games or movies your kids may have purchased.

Also check the subscriptions you may have signed up for a trial and forgotten to cancel. “Check your donations,” Brookhouse said. “When I say donations, I mean the things you buy and subscribe to and no longer use, so you’re essentially donating to the company.”

Then shop every three months for better phone and Wi-Fi plans or even car insurance. “Make sure you have the right plan at the right price because if your usage has changed or your patterns have changed or there are new programs on the market, you may find that there is something better for you and that is more cost-effective,” she said.

For people who are business owners or have significant taxable unregistered investments, tax planning should be on their frequent checklist, Heath said. “The more complex a person’s situation is, the more important tax planning is at least a quarterly discussion,” he said.

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What to check annually

Checking in on investments is an annual affair, Heath said. “Investments are something you would benefit from looking at less often,” he said. “For many investors, a quarterly or annual subscription is likely enough to dive deep into your investment.”

For people who are T4 employees with simple deductions, tax audits can be done annually, Heath said. However, he said people should plan their taxes proactively rather than retroactively when tax season for the past year arrives in April. Instead, think about what you need to do for the current tax year while you still have time to take action.

Most annual check-ins, such as reviewing your investments or life insurance, should also be reviewed during major life changes, Brookhouse said. “If you had a child, that could change your insurance requirements. If you get divorced, that could be a change,” she said. Brookhouse suggested looking at planning documents, for example to check whether the executor of your will is still up to the task and whether the document reflects your current thoughts.

Another annual review that should be done is bank charges. Brookhouse said people should shop around to make sure they can find the lowest fee for their needs, keeping in mind that costs may have increased over time.

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