No matter where you are in your personal finance journey, you should always check on your progress.

Circumstances, goals, and life changes can change where you stand financially. Ignoring your situation doesn't help, nor does hoping it will fix itself. 

Everyone must check in on their progress, and with these five questions, you can determine where you stand and what might need to change. These questions are meant to help you understand your situation and what changes you should make to perfect your personal finances.

1. What’s the Status of my Emergency Fund?

Everyone needs an emergency fund, no matter how much money you make, what you do for a living, or how healthy you think you are.

Your account should have at least six months of expenses in it. So, if it costs you $1,000 to live monthly, you should have $6,000 saved in a separate account. This is a simplified example to show you how much you should save.

Check your emergency fund periodically, noting its balance and if it needs replenishing. For example, if you lost your job recently and used some of your emergency funds, as soon as you're employed again and back on your feet, you should replace the funds used as soon as possible.

1. How Close am I to my Retirement Goal?

Whether you're 21 or 45 years old, saving for retirement is essential. The closer you are to retirement, the less time you have to save, and you may need to take advantage of catch-up contributions.

For example, the IRS allows a catch-up contribution of $7,500 annually for those 50 and older on a 401K and $1,000 in an IRA. 

Even if you’ve been on track, saving as much as you intended for retirement, there’s no guarantee your investments performed how you hoped. You might have more or less in your retirement savings than you anticipated. Check on the balance and your allocation, making any necessary changes to ensure you stay on track.

1. Is my Budget Working?

Creating a budget is the first step to good personal finance habits, but following up on its progress is essential. Sometimes, you can create a budget that looks great on paper but is hard to follow or doesn't work for your financial goals.

Every couple of months, check up on your progress. See how well you stayed within your budget and the progress you've made on your goals. If you find your budget isn’t working as planned, make adjustments.

This is also essential to do annually so you can revisit your goals and determine which you've achieved and which needs some help. You can reallocate those funds for future goals if you've achieved some goals.

1. Am I Getting Employer-Match?

If your employer offers employer match in your 401K, ensure you're taking advantage of it. For example, if they match 2% of your income at 100%, and you make $75,000 a year, they'll contribute $1,500 annually before any raises.

But you must contribute at least $1,500 for them to match your contributions. Check up on your employer-match rules annually and ensure you’re contributing at least as much as they’ll match, considering any raises you've received that increased your income and allows for a higher employer-match.

1. Am I Overspending on Insurance?

Every year around the same time, consider shopping around for insurance. This should include auto and home insurance at a minimum. When you stay with the same insurance company, premiums typically increase. Because we get comfortable with our insurance, we often don't touch it but can end up overpaying.

Instead of paying the premium increases and ignoring the change to your budget, shop around for cheaper insurance every year. You’ll likely circle back to the same companies every couple of years, but you’ll get lower premiums when you’re a ‘new client’ after you’ve been gone for a few years.

Final Thoughts

Checking on your personal finances often is important to reach your goals, stay within your budget, and stop overspending. 

It allows you to improve things and ensure you're able to meet your short and long-term goals, especially for retirement. Don't assume your personal finances are on track because you created a budget and set up retirement contributions. 

Check your progress often and make adjustments to see how you can improve your financial situation at any age. You'll make the best use of your money and create a sense of financial freedom.