Get Clear on Your Current Financial Picture

If you’re feeling overwhelmed or behind in your financial planning, you’re not alone. Many people are in the same boat—wondering how to catch up on retirement savings, reduce debt, or just get organized. The good news? It’s not too late to take control. One of the most important steps you can take right now is to get a clear picture of your current financial situation.

At Iowa Retirement Benefits & Solutions, we guide individuals and families toward financial security with trusted advice and personalized retirement strategies. In this article, we’ll walk you through how to assess your current financial picture—a foundational step in any successful financial plan.

Why It’s Important to Understand Your Financial Picture

Before you can plan for your future, you need to understand where you stand today. This clarity helps you:

• Identify financial gaps
• Set realistic short- and long-term goals
• Prepare for retirement with confidence
• Work more effectively with a fiduciary financial advisor

Step-by-Step Guide to Organizing Your Finances

1. Identify All Sources of Income

Understanding your cash flow is key.

• Wages or salary
• Pensions or Social Security benefits
• Investment dividends or interest
• Side gigs or freelance income
• Rental or other passive income streams
  Action Step: Add up your monthly income using a spreadsheet or budgeting app.

2. Track Monthly Expenses

Break your expenses into categories:

• Fixed costs (e.g., mortgage, rent, utilities, insurance)
• Variable costs (e.g., groceries, gas, dining out)
• Irregular or seasonal costs (e.g., annual fees, gifts, car repairs)
  Action Step: Track your spending for one full month to see where your money goes.

3. List All Debts

Know exactly what you owe.

• Credit card balances
• Student loans
• Car loans
• Mortgage
• Personal loans or medical debt
  Action Step: Document the balance, interest rate, and minimum payment for each debt.

4. Summarize Your Assets

This includes everything you own that has value:

• Checking and savings account balances
• 401(k), IRA, and other retirement savings accounts
• Investment or brokerage accounts
• Home equity or real estate
• Vehicles and personal property
  Action Step: Record the current market value of each asset.

5. Calculate Your Net Worth

Use this simple formula:
Net Worth = Total Assets – Total Liabilities
Action Step: Create a snapshot of your net worth to monitor progress over time.

6. Review Your Budget and Set Financial Goals

Once you know your numbers, ask yourself:

• Am I living within my means?
• Am I saving enough for retirement, emergencies, or major life events?
• What are my top financial goals—both short-term and long-term?
• Is my current financial strategy aligned with those goals?

Action Step: Adjust your monthly budget to better reflect your goals and priorities. Then, share your financial picture with a fiduciary financial planner for expert insight.

Start Planning Your Financial Future Today

Getting clear on your current financial picture is more than just good practice—it’s the foundation of smart retirement planning, debt reduction, and long-term financial success.

Let’s Do This—Together!
The team at Iowa Retirement Benefits & Solutions is here to help you make confident, informed decisions about your financial future. Whether you’re nearing retirement or just getting serious about your savings, we’ll help you create a personalized, strategic plan.

Schedule Your Free Financial Strategy Session

Email us at info@iowaretirementsolutions.com
Call us at 319-423-3332
Click here to schedule your free consultation.

Investment advisory services are offered through Fusion Capital Management, an SEC registered investment advisor. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration is not an endorsement of the firm by the commission and does not mean that the advisor has attained a specific level of skill or ability. All investment strategies have the potential for profit or loss.