7 Easy Steps to Investigate Your Finances

Have you ever felt unsure about where your money is going? Maybe you're not sure how much you owe, or if you're saving enough. Taking control of your finances doesn’t have to be confusing or stressful.  

Here are 7 easy steps to you investigate your finances. These steps will give you a clear picture of your money and help you make smart choices for the future.

Easy Steps to Investigate Your Finances

1. Review Your Current Financial Situation

Before you make any changes, you need to know where you stand right now.

Assess your net worth

Your net worth is everything you own minus everything you owe. Start by listing your assets; things like your bank account balances, retirement savings, car, or home. Then, list your debts, like credit cards, student loans, or car payments. 

Subtract your total debts from your total assets. The number you get is your net worth. This gives you a snapshot of your overall financial health.

Evaluate your income and expenses

Write down how much money you make each month from all sources; your job, side gigs, or benefits. Next, list all your monthly expenses. Include rent or mortgage, utilities, groceries, insurance, transportation, and other bills. 

Don’t forget small things like subscriptions or eating out. This will show you how much money is coming in and how much is going out. It helps you spot where you might be overspending or where you can save more.

2. Analyze Your Debt

Debt can hold you back if you’re not careful, but knowing the details will help you take control.

List all debts and interest rates

Make a list of everything you owe. Include the amount you owe, the interest rate, and the minimum monthly payment for each debt. This could include credit cards, personal loans, student loans, or car loans. Seeing everything in one place makes it easier to manage.

Create a repayment strategy

You have a few ways to tackle debt. One popular method is the avalanche method—you pay off the debt with the highest interest rate first. Another option is the snowball method—you pay off the smallest debt first for quick wins and motivation. Pick the one that feels right for you, and make a plan to pay more than the minimum when you can.

3. Check Your Credit Reports and Scores

Your credit score is a big part of your financial health. It affects your ability to borrow money, rent an apartment, or even get a job.

You can get a free credit report from each of the three major credit bureaus—Experian, Equifax, and TransUnion—once a year at AnnualCreditReport.com. Check for any mistakes, like accounts you don’t recognize or incorrect balances. If you see errors, report them right away.

Also, check your credit score. Some banks and apps offer free access to your score. A higher score means better chances of getting approved for credit and lower interest rates. If your score is low, work on paying bills on time and reducing your debt.

4. Assess Your Savings and Investments

Saving money is important, not just for emergencies but also for future goals.

Look at your emergency fund. Do you have enough saved to cover 3 to 6 months of basic expenses? If not, try to set aside a little each month until you reach that goal.

Check your regular savings account. Are you saving consistently? Can you increase the amount you save?

Review your investments, like retirement accounts or stock portfolios. Are they growing? Are they too risky or too safe? If you’re not sure, consider talking to a financial advisor.

5. Review Your Financial Goals

Think about what you want to achieve with your money.

Do you want to buy a home?

Pay off all your debt?

Travel more?

Save for your child’s education?

Retire early?

Write down your goals and divide them into short-term (within a year), medium-term (1–5 years), and long-term (over 5 years). Check your budget and savings plan to see if you're on track to meet those goals. If not, adjust your spending or savings so you can get closer to where you want to be.

6. Ensure Proper Insurance Coverage

Insurance protects you from big financial losses. If something unexpected happens—like a car accident, illness, or damage to your home—insurance can save you from large bills.

Check your insurance policies:

Health insurance: Do you have the right coverage for your medical needs?

Auto insurance: Are you getting good protection at a fair price?

Home or renter’s insurance: Are your belongings and property covered?

Life insurance: Will your family be protected if something happens to you?

Review your policies every year or after big life changes, like marriage, having kids, or buying a house.

7. Plan for Taxes and Retirement

It’s easy to forget about taxes and retirement when you're focused on day-to-day expenses, but planning ahead can save you a lot of money later.

Look at your tax situation. Are you taking advantage of all possible deductions or credits? Could you adjust your withholdings to better match what you actually owe?

For retirement, are you saving enough? If your employer offers a retirement plan like a 401(k), try to contribute at least enough to get the full match. If you’re self-employed or don’t have a plan at work, consider opening an IRA (Individual Retirement Account).

The earlier you start saving for retirement, the more time your money has to grow.

Conclusion

Investigating your finances doesn’t mean you have to be perfect with money. It just means you’re taking the time to understand your financial situation and find ways to improve. These 7 steps can help you build a strong foundation, reduce stress, and reach your goals—one step at a time.

Start small. Pick one area to focus on this week. Once you get started, it gets easier. And remember—you don’t have to do it all alone. Reach out to a financial advisor, use free online tools, or talk to someone you trust for support.

If you or a loved one is navigating financial decisions while also managing care needs at home, A Circle Of Love Home Care is here to help. We offer compassionate support, helpful resources, and personalized care so you can focus on what matters most. Contact us today to learn how we can support your family’s journey—both emotionally and financially.