Tip of the week: Review your finances with a calm yearly check-up

Once a year, step back and look at your whole financial picture. It does not take long, and it can change your direction.

Sit with a notebook and answer:

• What are my total savings, and how have they changed?
• What debts do I have, and what do they cost?
• Where did most of my money go?
• Did I reach my goals, and what got in the way?
• What are my goals for the coming year?

Be kind to yourself. The purpose is to learn, not to feel guilty. Celebrate your progress, even small.

If you run a business, do the same for the business separately, using your records. Compare the two to see if the business supports your life well.

Share your goals with a trusted family member, who can encourage you. Then set three clear targets, such as an amount to save, a debt to clear and one habit to start.

This week: block an hour to do this check-up and write your three targets.