The problem with keeping your financial order in line is you just don't have the time to sit down and do it. Au contraire! The last week of every year is basically a period of down time in most of our lives, so take advantage of it.



Ah, but you already have a financial plan in place and have figured out everything already, right? Wrong. As you well know by now, life has a habit of being unpredictable. This means you financial plan is probably out of date.

If you could see into the future, you could have a highly accurate financial plan. Frankly, you would be wildly rich. None of us, however, have pulled off the fortune teller gig, so we have to review our current and future financial situation at least once a year.

The big question is how have things changed in the last calendar year? Now, how do those changes translate to your current financial profile? If you don't look back each year, you can quickly find your financial situation is severely outdated.

Don't get caught up in analyzing minor changes. We are talking about big things like getting married, changing a job or having a child. A new addition to the family, in particular, can be a slap in the financial face.

With a new child, your financial plan can more or less be thrown out the window. The initial issue to consider is the impact on your current situation. It is going to cost more to feed and house a child, not to mention medical bills.

A new family addition should act as a catylst to make you consider your financial situation. How will you send them to college? What if something happens to you? Do you have a trust and will in place? Life insurance?

Expanding your family is an obvious, if rather common, example. Plenty of other events, however, can have the same impact. What if you changed jobs? What if a family member is hurt? What if your parents move in with you?

The end of the year presents you with a good time to take stock of your life. Finances should, of course, be part of that overview. Your future hinges on getting it right, so don't blow it off.