The Financial Questions You Should Ask Yourself Every Year

Your financial life is not something you set and forget, just like your health or relationships, your finances need regular check-ins to stay on track. Life changes, so do laws, markets, and personal goals and that is why it is essential to make time at least once a year to ask yourself a few key questions that will help you assess where you are, what has changed, and what needs to be adjusted. These questions are not just about numbers, they are about aligning your money with your life.

A good place to start is by asking, “Is my will up to date?” This might not feel like a priority when everything is going well, but ensuring your estate plan reflects your current circumstances is crucial. Have there been any births, deaths, divorces, marriages, or asset changes in the past year? If so, your will may need to be reviewed and updated. An outdated will can lead to confusion or conflict among loved ones, and possibly the mismanagement of your estate.

Next, take a step back and consider, “Has anything changed that might affect my risk profile?” This can include personal changes like having a child, going through a divorce, planning a career switch, or even receiving an inheritance. It can also include external events like rising global interest rates, market uncertainty, or political instability. These events can influence how much risk you are comfortable taking on, as well as how much risk you should take. For example, if you are nearing retirement or have taken on more responsibility at home, your appetite for aggressive investments may have shifted towards more stable options. Revisiting your investment strategy with these changes in mind is an important way to stay in control of your future.

From there, it is helpful to ask, “How do these changes impact my financial goals and timelines?” A shift in your income, your expenses, or your responsibilities might mean adjusting your retirement age, changing your savings targets, or even pausing some goals to prioritise others. Maybe you are no longer aiming to buy a second property, but instead need to focus on funding a child’s education. Or maybe you are earning more and could afford to fast-track your path to financial independence. Your financial goals are living, breathing targets that should evolve with your life.

One of the most practical questions you can ask each year is, “Have I taken full advantage of my tax-free contributions?” In South Africa, this includes both your Tax-Free Savings Account (TFSA) and your retirement fund contributions, such as a Retirement Annuity (RA). The annual limits for each are designed to help you reduce your tax burden while growing your wealth. If you have not yet reached the contribution thresholds, it is a good time to consider topping up before the tax year ends. Remember that RA contributions are tax-deductible up to 27.5% of your taxable income (with a maximum cap), and that TFSAs allow tax-free growth on interest, dividends, and capital gains, making them powerful tools in any long-term plan.

Next, check in on your emergency fund by asking, “Is it still adequately funded?” If you dipped into it during the year, for medical bills, car repairs, or other unexpected costs, have you replenished it? Ideally, an emergency fund should cover at least three to six months’ worth of living expenses. This safety net provides peace of mind and protects your long-term investments from being raided in times of crisis.

Debt is another area that deserves honest reflection. A useful question to ask is, “Am I aware of any high-interest debt that needs attention?” Credit card debt, overdrafts, or personal loans can silently accumulate and inflate over time, especially when ignored. Tackling these debts proactively, even if it means adjusting your spending in the short term, can save you thousands in interest and improve your financial position in the long run.

Finally, it is worth asking yourself, “Do I understand where my money is going each month, and is it aligned with my values and goals?” This means revisiting your budget, not just to see where you can cut back, but to ensure your spending habits reflect what really matters to you. If you say freedom is your goal, but your expenses are driven by short-term pleasure or keeping up appearances, it might be time to realign.

Asking these questions once a year can create clarity and confidence in your financial life. It helps you stay proactive, rather than reactive, and ensures your money continues to work for you, not the other way around. So, before the year slips by, take some time, sit with these questions, and give your finances the attention they deserve. You might be surprised how much peace of mind comes from simply checking in.