Get your personal finance audited

When it comes to auditing, we usually think of a Chartered Accountant (CA) who audits your balance sheets, profit and loss statement, etc. He/she does so to ensure that there are no flaws in the statement and is in line with the prescribed governing law. Same is the case with personal finance. The only difference is that in our country there is still no governing law for auditing personal finance. However, it is wise to get it audited periodically to ensure you are on track. Following are the things that you need to check while auditing.

Financial Plan
This should be your starting point. First you need to evaluate whether you have a comprehensive financial plan in place or not. If not then you have to get one. Comprehensive financial plan not only covers your financial goals but also suggest improvements in your overall personal finance situation with an action plan. So, get a financial plan if you don’t have it already.

Evaluate savings progress
Having a budget or savings plan is of the utmost importance for overall progress of your personal finance. Your future cashflows, investments, insurance, etc. all depends on your savings. So, it is important to keep evaluating your savings plan periodically to check whether it is going on as planned or not. If not then you can take an action after discussing with your financial planner.

Check investment portfolio
Checking investment portfolio from time to time would help you to check whether you have done necessary investments as prescribed in financial plan. This will also help you understand whether you need any sort of rebalancing or not. Even you can keep an eye on your investments. At times, there are some headwinds in investment space which make you change the investment products to avoid further losses. You can avoid the losses only if you are auditing your personal finances more often.