Reviewing your financial goals is one of the most valuable gifts you can give yourself, whether it’s at the start of a new year or anytime you need to evaluate your financial readiness. Taking time to evaluate where you stand—and where you want to go—turns vague hopes into clear goals and concrete action. A good review, once a year, covers your cash safety net, your day-to-day spending, your protection plan, and your long-term savings. 

Start With Your Emergency Fund 

Start with the most basic question: “If I had an emergency, do I have the funds to pay for it?” Many experts recommend an emergency fund of three to six months of living expenses, but that can feel overwhelming when you’re just getting started. Instead, set milestones. 

First, aim for $1,000 in a savings account. That’s enough to keep many small crises—car repairs, a broken appliance, a last-minute plane ticket—from turning into new credit card debt. Once you reach that, target one full month of expenses. From there, you can decide whether three or six months is realistic for your situation, your job stability, and your family needs. 

Review Your Budget and Spending Patterns 

Next, take an honest look at your budget. The question is not “Do I have a budget on paper?” but “Is my budget actually working for me?” Look back at the last year. Did you intend to reduce debt but find that your balances are higher now than they were 12 months ago? If so, pause the self-criticism and start diagnosing.  

Were there major surprises—an unexpected car bill, a PCS or move that cost more than you planned, medical expenses, home repairs? Or did spending creep up in everyday areas like eating out, subscriptions, or impulse purchases? A budget’s job is both to designate spending and to reveal the gaps between your plan and reality so you can adjust to meet your targets before problems compound. 

This is where looking at categories over time helps. Compare what you thought you would spend to what you actually spent in big categories like housing, transportation, food, debt payments, and discretionary spending. If your car costs blew up because of repairs, maybe you need a sinking fund for auto expenses—an amount you set aside every month so the next repair is funded in advance. If PCS costs caught you off guard, build a “military life” or “move” fund that you contribute to throughout the year. A realistic budget isn’t one that looks perfect—it’s one that reflects your real life and still pushes you toward progress. 

Review Insurance and Protection Needs 

After your emergency fund and budget review, shift to protection: insurance. At least once a year, review your health, auto, and life insurance coverage.  

For health insurance, confirm you know your deductible, out-of-pocket maximum, and which providers are in network. Ask yourself whether your family’s health needs have changed—new diagnoses, more prescriptions, upcoming surgeries—and whether your current plan still fits.  

For auto insurance, check both your coverage limits and your deductibles. Sometimes raising a deductible can lower your premium, freeing up cash you can redirect to savings or debt payoff, as long as your emergency fund can handle that higher deductible. 

Life insurance deserves special attention. If someone depends on your income—spouse, children, or even aging parents—you likely need coverage beyond what is offered by an employer or the military alone. Review how much coverage you have, the type of policy (term or permanent), and how long it will last. Then ask: If I were gone tomorrow, would this cover debts, living expenses, and major goals (like education) long enough for my family to adjust? If the answer is no, explore additional coverage options. 

Check Your Savings and Retirement Progress 

Finally, turn to your savings and retirement accounts. Once a year is a good rhythm to log in, review balances, and ask whether your investments still match your risk tolerance and time horizon.  

As you get better at saving and investing, closer to retirement, or as your life circumstances change—you may want to review your risk tolerance of your investable assets. That can mean rebalancing your portfolio: shifting some money from one type of asset to another one, or making sure you are not overly concentrated in any single asset or sector. Many plans allow you to rebalance automatically based on a target mix or your own custom allocation. 

This is also a great time to look at your contribution rates. Can you set up automatic increases to your retirement savings—your TSP, 401(k), or IRA—of 1% or more per year? If you cannot afford to make the change right now, set a reminder to revisit the idea at your next raise, promotion, or COLA. Even small, automatic increases add up over time, especially when combined with employer or government matching contributions. The goal is to make your progress a routine, not an exception. 

Make Financial Reviews a Regular Habit 

There are many ways to structure a financial review, and countless online tools and resources to help with budgeting, tracking net worth, and setting goals. The exact method matters less than the habit. Put a recurring appointment on your calendar—once a year, or even once a quarter—to sit down with your numbers, your goals, and a clear head. Ask yourself: Am I prepared for an emergency? Is my budget realistic and truly working for me? Are my insurance and protections up to date? Are my savings and investments aligned with where I want to be in five, 10, or 20 years? 

If the answers are not where you want them to be, that is valuable information for you to build on. From there, you can decide what you can honestly afford to change and improve: a slightly higher emergency fund target, one expensive habit trimmed, one extra payment toward debt, a small bump in retirement contributions. Over time, these small adjustments, made deliberately and revisited regularly, create a clear snapshot not just of where you are, but where you are going—and the confidence that you are moving there on purpose.