A super simple way assess your financial health

You know that it’s important to check in with your physical health at least a few times a year. But what about your financial health? Is there a simple “test” to see where you stand with your finances like there is for your vital signs?

Turns out that there is a simple financial health assessment you can do any time. That’s what we’re talking about today!

As I’m writing this, it’s summertime. Summer is a GREAT time to check in with your financial health, as it is (obviously) halfway through the year. But honestly, any time is a good time to take a look at where you stand!

So whether you are checking in twice a year, once a quarter, or at some other interval that works for you, a financial health check-in is just what the doctor (or accountant!) ordered.

Now, what are the steps? The process is actually SUPER simple. All you need is to ask the right questions, and take action with the answers you get.

Here is my simple checklist to assess your financial health quickly!

All you have to do is grab a pen and paper, go through each item listed below, and give yourself a star for each YES. Don’t overthink it, and don’t worry if you don’t think you’re getting as many stars as you’d like. No judgment. We’re just gathering information here.

Ready?

Let’s get started! Go through this list and give yourself a star for each YES.

1. My bookkeeping is up to date
2. I save copies of receipts (give yourself a bonus star if you attach to the transaction)
3. I reconcile all bank and credit card accounts monthly (bonus star for saving a back-up copy in a dedicated folder)
4. I do a monthly review my Income Statement and Balance Sheet reports generated either by me OR from my accountant/CPA/finance support team.
5. I make all loan, bills, and credit payments on time.
6. I have an up-to-date Annual Report. (If applicable, see state requirements here)
7. I have up to date Insurance policies.
8. I pay estimated quarterly taxes (if applicable).
9. I pay all payroll/sales taxes on time (if applicable).
10. I have reviewed my goals against my performance and have regular KPIs to check in.
11. Cash inflows consistently exceed outflows.
12. I have at least 2–3 months of operating expenses in reserve.
13. I monitor Accounts Receivable and follow up on overdue invoices.
14. My reports are showing a profit, and if there is a loss it can be easily explained.
15. I have diversified income streams.

That’s it!

So now that you’ve completed your financial health check-in, how do you feel? How many stars did you give yourself?

If you’re feeling excited that you’re on the right track for the year, that’s great! But if you’re finding that you want a lot more stars than you gave yourself, don’t let it get you down.

This is not an assessment of YOUR worth. It’s just a look at where you stand with your business finances. And THAT can always change the way you want it to!

The best part of this assessment is that you can see not only where you are, but you can make plans to get where you want to be.

So no matter what your “score” turns out to be, take it simply as information you can use to make your next move. What does that look like? Here’s what I recommend to do AFTER you take this assessment.

Give yourself credit for what you love, and make a plan for what you’d like to improve. And I don’t recommend trying to change every item you didn’t star at once. Instead, choose ONE next best step. Make a plan to get your chosen item onto the “star” list, then move on to the next one.

Remember, take it one step at a time, and build from there.

Now, I’d love to hear from you! Tell me what items you starred, which ones you want to star the next time, and how I can support you in making it all happen.

Can’t wait to hear from YOU!

Until next time…

Love, light, and MONEY, Honey…

Kaylee

P.S. Want to take this financial health assessment to the next level? Take the quiz HERE and learn what your Money Management Personality is, and what that means for your finances.

This quiz will give you insight into how you really manage your money, what works, what doesn’t, and how to use this information to build a financial future that you can get excited about.