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Finances are like a garden; if you're not paying attention to them, you might miss small issues that can crop up like weeds and grow bigger. That's why conducting a financial checkup is a smart idea. All it takes is a little time and guidance on what to dig into.Regularly monitoring your checking account is helpful, of course, but doing this deeper dive at least once a year can help you manage your money even better. For a well-rounded analysis, ask yourself these six financial questions. <img src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/financial-checkup_body-2_1035834404.jpg" alt="A customer meets with a financial planner to review her investments" class="right_image" /><h2 style="margin-bottom: 11px;">How's my credit score?</h2>A credit score is the main indicator of your financial behavior to a lender. It shows how likely you are to repay debt or make payments on time. Because lenders look at this number to determine whether they'll give you a loan (for a car or credit card, for example), having a good score — typically 670 or higher — is extremely helpful. If your score is lower than this, you may be able to successfully get a credit card or a loan, but the interest will likely be far higher than it would be for people with good credit.Keep in mind that credit scores depend on good credit reports. This means you'll want to occasionally read over your credit report to spot any potential issues such as erroneous information or missed payments, which can drag down your score. Visit AnnualCreditReport.com for a free copy of your credit report; you're entitled by law to receive one from each of three major credit reporting agencies — Equifax®, Experian® and TransUnion® — once a year.<h2> Am I paying off my debt the right way?</h2>Most people carry at least some debt, such as a mortgage, car payments or student loans. The key is not only committing to paying it down but also making sure you have an actual <a href="https://www.lifeandmoney.citi.com/lam/articles/money/managing-money/how-to-pay-off-debt">paying-off-debt</a> plan that you're carrying out.There's no magic number for the maximum amount of debt anyone should have, says Lisa Whitley, a Washington, D.C.-based accredited financial counselor and chartered retirement planning counselor. But there is a difference in types of debt. If you have a mortgage or a car loan that you're easily paying off every month, this is "good" debt, according to Whitley. It's the "bad" debt that needs to be taken care of, she adds. For instance, if you've taken out a high-interest payday loan, you'd want to pay that off as soon as possible to avoid the mounting fees that can plunge you deeper into debt. <img src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/financial-checkup_body-1_1319763433.jpg" alt="A couple meets with a financial advisor in their home" class="right_image" /><h2 style="margin-bottom: 11px;">Am I saving enough?</h2>Even if you are dedicating funds to paying down debt, building up your savings at the same time is also important for your financial future. Consider setting aside money in these three buckets:<ul><li>An emergency fund. If you aren't reserving any amount for big, unplanned purchases, like new brakes for your car, you may end up having to borrow money to fix them, which can increase your debt. Generally, experts suggest trying to save at least three to six months' worth of expenses, even if you have to start small and build this up gradually. This can ensure that, if you lose your job or have unexpected costs (for a medical need or otherwise), you could temporarily live off your savings.</li><li>Retirement accounts. You should be saving for your <a href="https://www.lifeandmoney.citi.com/lam/articles/milestones/retirement/the-new-retirement">retirement</a>, even if it seems like a long way off, because the more time you have to save, the more money you can accrue through employer-sponsored retirement programs such as a 401(k) or 403(b) plans or an Individual Retirement Account (IRA) to cover your living expenses. Keep in mind that the average benefit amount paid monthly by the Social Security Administration is currently $1,703.98 which may not meet all your needs.</li><li>A savings account. Consider creating a savings account to cover expenses that aren't necessarily an emergency but are nonetheless important to pay, like a replacement kitchen appliance or your child's overnight class trip.</li></ul><h2>Am I investing wisely?</h2>If you have retirement accounts set up or other investments (<a href="https://www.lifeandmoney.citi.com/lam/articles/money/managing-money/money-market-account-or-cd-account">certificates of deposit, money market accounts</a>, <a href="https://marketinsights.citi.com/Financial-Guidance/Investing/Mutual-Fund-Basics.html">mutual funds</a> or stocks, for example), you'll want to look at them, on your own or with a pro, to make sure they're on track and growing your retirement fund. If you don't, this could be a good time to talk to a financial advisor, who can advise you on making investments that could help build wealth for your retirement or, say, a down payment on a house.But before you do this, Whitley says, review your objective goals — for example, having enough income for your kids' college education, for your retirement or to put toward a business you've always dreamed of running. Ask yourself: Have your priorities changed? Has your time horizon shortened or lengthened? Have circumstances shifted, affecting how you intend to use this money in the future? If so, you may want to save even more money or reallocate what you're putting into your various goal-focused buckets (say, education, retirement or new business). "Notice that none of these questions have to do with market performance," Whitley says. "You are on the right track when your portfolio matches your investment goals and that does not change with the ups and downs of the market."It's worth noting that if investing isn't on the table for you right now, opening an interest-bearing savings account can be a good entry point. You can <a href="https://www.lifeandmoney.citi.com/lam/articles/money/savings/what-is-systematic-investing">contribute money to it on a schedule</a>, such as at every pay period or monthly. Once that habit is established, you might want to consider more advanced investing.<h2 style="margin-bottom: 11px;">Do I have enough insurance?</h2>It's easy to forget that insurance is a form of money management. "Insurance in some form or another has existed in human society for millennia for the simple reason that without it, we would not be able to afford to take any risk in our lives," Whitley says. "Without insurance, you have no option other than to absorb the economic consequences of risk yourself."Consider homeowner's insurance, for example: If you didn't have it, "could you save enough money to hold in reserve to rebuild your home?" Whitley asks. "Most people cannot, so insurance is a form of leverage that allows you to spend a smaller amount of money, the premium, to guard against a risk that you would not be able to absorb on your own." Look over your current insurance policies to determine whether they offer you enough coverage. If, potentially, they don't, you may want to discuss that with an insurance broker and ultimately change your policy so that you're well protected. Your premiums would then go up, but paying a bit more in the short term may be worth it if it decreases the risk of leaving yourself or your family lacking sufficient coverage in the future. You might also want to explore insurance policies you don't already have, such disability or long-term care (this may cover home health care or assisted living home expenses) and think through how these might protect your finances if something were to happen to you.<h2>What estate planning should I be doing?</h2>This is another form of financial planning that is commonly overlooked since it requires thinking about topics many of us would rather not consider. It's important, however, because if you pass on without legal documentation such as a will, the courts in your state will decide who gets what, and this can create a mess of red tape for your relatives. Whitley advises thinking about reviewing an estate plan or <a href="https://marketinsights.citi.com/Financial-Guidance/Trust-Estate/">starting one</a> to make sure your affairs are in order. "An estate plan does you, as the deceased, no good at all," she says. "It is an act of love for the people you leave behind."— With additional reporting by Geoff Williams and Life and Money by Citi editors

It's Easy to Give Yourself a Financial Checkup — Here's How

Do you remember life before smartphones? Probably not.They're used for almost everything these days. They order groceries, track workouts and pretty much answer all questions.More importantly, mobile devices now help manage money. A large number of tech-savvy market-watchers have turned to low-cost digital investing products for help planting the seeds of their financial future. Today, many financial institutions and brokers offer a mobile app to make the process smooth, educational and sometimes fun.The benefits of having a tool like this in your pocket are numerous, including quick, immediate, on-the-go access to information about your investments, and the control to make changes to your portfolio on your own.Ready to jump in? Understanding how to get started with mobile investing — from defining your goals to placing your first trade — will increase your chances of success.<img src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/GettyImages-1153076995_web.jpg" alt="Woman using smart phone outside" class="right_image" /><h2>Before diving in, check up on your finances</h2>Ahead of downloading an app and placing trades, you should get into the habit of making informed money decisions. Start by giving yourself a head-to-toe financial exam. Consider your monthly income, regular expenses and potential financial goals for the near future. Does your income cover your expenses? Are you on track to reach your goals? Your answers to these questions will help shape your budget and, in turn, answer the question of how much money you have that can be put toward a portfolio.You can't plan for everything, though; holding some money as cash in an emergency fund can help cover any unexpected expenses without having to affect your investments.<h2>Do your homework</h2>A quick search for "investing" in your mobile phone's app store reveals more than a dozen options to choose from. With so many available investing apps — many of which offer a similar suite of services — it can be easy to get lost in the sea of sameness. Here are some pointers about what to look out for as you get started.<ul><li>Clean and easy-to-use interface. The beauty of most apps is that it makes signing up painless from the first touch. Investing apps should be no different. For many first-time investors, just opening an account can be a daunting task, so most apps need to offer clean user interfaces with clear step-by-step instructions. </li><li>Available data and content. How are the markets moving today? How is your portfolio allocated across various asset classes? Apps that pipe in this kind of data better equip you to make informed decisions about how to manage your investments. The ability to create watch lists of equities and funds you are interested in tracking is another important plus. </li><li>Low costs and minimum balances. You don't need to make a lot of money to start investing. Some of today's mobile apps strive to make the process effortless and accessible to everyone, thanks to low minimum required balances as well as commissions ranging from zero to just a few dollars per trade, depending on the type of investment vehicle.</li></ul><ul><li>Connectivity to your other finances. When choosing the right mobile platform for your portfolio, be sure to consider the value and efficiency of having one holistic view of your banking and investments. A financial institution that offers banking and brokerage services may be able to provide this bundled set of tools and allow for more seamless transfers between accounts as you look to redirect money toward building up your holdings. </li><li>Other features. Beyond the basics of buying and selling stocks, the most attractive mobile apps also help take the headaches out of investing by offering automations and advisory as part of the relationship. These may include robo-advisors – where an algorithm helps manage your portfolio based on your financial goals – and automatic dividend reinvestment.</li></ul>

Today's Go-to Investing Tool? Your Smartphone

So, you've decided to get serious about savings this year. (Bravo!)But do you know where it makes the most sense to put your money?Interest rates have been climbing lately, and money market accounts and <a href="https://www.lifeandmoney.citi.com/lam/articles/money/savings/cd-ladder-strategy-for-high-interest-saving">Certificate of Deposit (CD) accounts</a> are giving traditional savings accounts, well, a run for their money.But first, the basics: CD accounts are time deposits that have a fixed interest rate, fixed term and fixed maturity date when money can be withdrawn. A money market account is an interest-bearing account that typically earns a better rate than traditional savings accounts. Money market accounts follow Regulation D rules for monthly withdrawals (up to six per month are allowed) and may come with checks or a debit card.Understanding the ins and outs of each account type and how it relates to where you are in life — whether starting your first job or heading into retirement — will help you maximize what you sock away.<img src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/unsplash_OsC8HauR0e0_web_0.jpg" alt="Young adult man wearing glasses looks out the window at some trees" class="right_image" /><h2>4 fees to account for</h2>High-yield money market and CD accounts can dazzle savers with great rates, but it's important to check the fees. Those may include:<ul><li>Monthly maintenance fees </li><li>Minimum balance fees (for money market accounts) </li><li>CD early withdrawal penalties </li><li>Excess withdrawal fees (which can apply to money market accounts if you make more than six qualified withdrawals per month)</li></ul>The more fees a money market or CD account charges, the less of your interest earnings you get to keep. The good news, says Best, is that "in today's competitive banking environment, you can easily find CDs and money market accounts that charge no or very low fees."

Should I Use a Money Market Account or a CD?

Maybe you've dipped a toe into investing.
Perhaps you've socked away money in an interest-bearing savings or <a href="https://www.lifeandmoney.citi.com/lam/articles/money/managing-money/money-market-account-or-cd-account" data-link-source="tiny">money market account or CD</a>. Or maybe you're a confident DIY trader who knows your way around the stock market.
No matter your experience, all investors fall into a category (or categories) that can help determine your investing style. And it's important to understand your investing style or personality as it can help as you think about setting &mdash; and meeting &mdash; financial goals for your future.
Many questions exist about when to invest or what to invest in. But knowing how you want to invest and understanding your risk tolerance with regard to investing, may be two very important factors impacting your level of comfort when it comes to trying to grow your money for your future.
As with many money habits &mdash; <a href="https://www.lifeandmoney.citi.com/lam/articles/money/savings/saving-money-hacks" data-link-source="tiny">are you more of a spender or saver</a>? &mdash; your approach to investing was most likely shaped when you were young. It can have ties to experiences from your childhood or teenage years in viewing how your family dealt with money.
"The psychology of money is where all these things start," says <a href="https://www.lifeandmoney.citi.com/lam/home" data-link-source="tiny">Tori Dunlop</a>, the founder of Her First 100k, a money and career platform for millennial women. "The majority of money habits are cemented by age seven. So much of your relationship around money is about how the people around you growing up, like your parents, managed money."
Dunlop was lucky in that her parents talked about money and investing while she was growing up. One important lesson her dad taught her? "He said we're aggressive early because you have time," she adds. "If you lose some money, you have 30 to 40 years to gain it back."
While some may jump into investing with both feet, not everyone has that same type of mindset. And negative experiences with money may lead to fears around investing. To gain a better understanding of where you land, here are five investment styles to help you figure things out and build out your own portfolio.
<h2>First-time investor</h2>
While it seems like millionaires are minted overnight these days as technology stocks have soared, the truth is that many of us have never made an investment. Sure, your Uncle Joe may have bought you some stocks or savings bonds when you were born, but 45% of Americans currently do not own stocks of their own, according to a 2020 Gallup poll.
No matter your age, it&rsquo;s important to get started investing to plan for your future &mdash; yet&nbsp;<a href="file:///C:/CMS/lam/legacy-site/www.lifeandmoney.citi.com/money/managing-money/how-to-start-investing.html" target="_blank" rel="noopener" data-link-source="tiny">taking that first investing step</a>&nbsp;can be daunting. Not to mention, when you do invest,&nbsp;<a href="file:///C:/CMS/lam/legacy-site/www.lifeandmoney.citi.com/money/managing-money/questions-ask-financial-advisor.html" target="_blank" rel="noopener" data-link-source="tiny">stock market volatility</a>&nbsp;might have you reconsidering your investing strategy. It doesn&rsquo;t have to be that way.
&ldquo;First timers should get good coaching,&rdquo; says Anjali Pradhan, founder of Montreal, Canada-based investment coaching service Dahlia Wealth. &ldquo;Get someone to guide you so you don&rsquo;t fall prey to your emotions. The danger is people get scared, they sell and then sit on the sidelines for a number of years.&rdquo; They miss out on the potential to see investment gains, Pradhan says.
<blockquote>
Get someone to guide you so you don&rsquo;t fall prey to your emotions.
</blockquote>
Looking for assistance? Consider tapping into websites or books that are available for every level of investor, or take a basic course. Working with a financial advisor is also an option for many.
<img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/Woman working from home with dog._0.jpg" alt="woman working from home with dog">
<h2>Dedicated saver</h2>
This next group tends to be cautious and keeps a more watchful eye over their money. It's not as though they stow it all away in a mattress for the future, but they may not be comfortable investing in the markets to take that greater risk or stretch to grow savings.
"Saving and investing are not the same thing," says Amanda Clayman, a Los Angeles, CA-based financial therapist. "Saving is about protecting ourselves from trouble. Investing requires a different approach and skill set. It's hard for people who are <a href="https://www.lifeandmoney.citi.com/lam/articles/money/managing-money/super-money-saving-tips" data-link-source="tiny">dedicated savers</a> to naturally convert that savings behavior into an investing strategy without some self-awareness. It's important to know ourselves and where that motivation to save comes from."
Dedicated savers may contribute to a 401(k) through their jobs (as well as any employer-match programs as part of that) or fund an individual retirement account (IRA) to save incremental amounts that are then invested in various stocks, mutual funds or other investments. Some may think of this as a way to "set it and forget it," where a fixed amount can be invested automatically weekly or monthly.
<h2>Independent investor</h2>
People who take on investing all on their own may tend to go all-in. They might spend hours researching to create a portfolio that, say,&nbsp;<a href="file:///C:/CMS/lam/legacy-site/www.lifeandmoney.citi.com/money/investing/socially-responsible-investing.html" target="_blank" rel="noopener" data-link-source="tiny">aligns with their values&nbsp;</a>&nbsp;or their personal interests, open investment accounts, maybe take calculated risks and day trade. This type of investor may have a higher tolerance for risk and trusts their own instincts instead of (or in addition to) seeking an advisor's guidance.
On the flip side, people who fall into this category can also get overwhelmed with the amount of information available between books, websites and more, and may also on occasion benefit from guidance on their investment needs.
&ldquo;Investment will always have an element of risk, but this particular type of investing can cause stress if [the investors] aren&rsquo;t getting big wins and they can face extreme lows,&rdquo; says Chane Steiner, CEO of Crediful, a personal finance education website. &ldquo;This is definitely more sensible for those who have been at it longer and have a deeper understanding of what they are doing.&rdquo;
As investing on your own takes a certain level of risk, knowledge and confidence, this category tends to include those who have a better understanding of the stock market and various methods of investing.
<h2>Investment guidance seeker</h2>
People may seek the help of an advisor for different reasons.&nbsp;Perhaps you don&rsquo;t know much about investing and want someone to guide you. Maybe you&rsquo;re a high net worth investor who wants someone else to handle your nest egg. Or you want to take more of a hands-off approach and have someone else manage your investments, checking in once in a while to see how your portfolio is performing.
Regardless of where you land, one thing you need in a relationship with a financial advisor is trust. It&rsquo;s important to know what&nbsp;<a href="file:///C:/CMS/lam/legacy-site/www.lifeandmoney.citi.com/money/managing-money/save-money-with-a-financial-checkup.html" target="_blank" rel="noopener" data-link-source="tiny">questions to ask an advisor</a>&nbsp;in general and in a&nbsp;<a href="file:///C:/CMS/lam/legacy-site/www.lifeandmoney.citi.com/money/managing-money/questions-ask-financial-advisor.html" target="_blank" rel="noopener" data-link-source="tiny">shifting market</a>&nbsp;to help set you up to make sound investing decisions.
&ldquo;Find a financial educator you trust to help explain your options and what&rsquo;s right for you,&rdquo; Dunlop says. &ldquo;That way, you&rsquo;ll have someone to guide you through the process. Any big or small investing decision, make sure you work with people you trust and whose values align with yours versus someone who doesn&rsquo;t have your best interests at heart.&rdquo;
<blockquote>
Find a financial educator you trust to help explain your options and what&rsquo;s right for you.
</blockquote>
<h2>Blended returns</h2>
In reality, when it comes to investing styles, most people tend to exhibit aspects of all of the types above. Either they are new to investing &mdash; or a type of investing (<a href="file:///C:/CMS/lam/legacy-site/www.lifeandmoney.citi.com/money/managing-money/getting-started-with-mobile-investing-apps.html" target="_blank" rel="noopener" data-link-source="tiny">such as mobile investing</a>), can be a thoughtful saver, self-directed or in need of some guidance.
You may have worked with a financial advisor, but also spent time educating yourself, doing research and now want to open an investment account where you control what you buy and sell. As a result, you may mix investments between stocks, bonds, real estate, art and more. You might also have some money in liquid savings that can be easily accessed.
&ldquo;This is usually a person who tries to gain the confidence to manage money on their own &mdash; even if they don&rsquo;t realize that&rsquo;s what is happening,&rdquo; Pradhan says.
Working with an advisor while learning how to manage your own money may also be a way to gain more emotional control over investing. &ldquo;Maybe it&rsquo;s a way to diversify our anxiety,&rdquo; Clayman adds. &ldquo;Ultimately we want to notice where our emotions pull us and then layer some [investing] analysis on top of that.&rdquo;
Investing can come with highs and lows. The more you learn and understand can help you make more educated decisions and gain confidence. That can allow you to go it on your own, work with an advisor or do a mix of the two.
Trying to figure out where you land as an investor may take some time. You may know exactly who you are financially, or it may take years to learn. Either way, it&rsquo;s important to start asking those questions so you can start investing and set yourself on a path of planning for your future.
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How Well Do You Know Your Investing Personality?

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