Last week we discussed the pitfalls of managing finances as a couple on the road; along these lines – but regardless of whether you travel solo or as a couple – performing a semi-annual financial review is a necessary exercise to ensure your travels are financially sustainable.
The Semi-Annual Financial Review
It may sound foreboding, but it doesn’t have to be. Ideally in organizing your official documents and finances for the road, you already have a clear picture of your financial situation, and some semblance of a travel budget or expense history.
With this information in hand, simply sit down (together, if you’re a couple) every six months and take stock.
Some questions to answer:
- How much income have I/we earned?
- Will my/our income change in the next six months?
- How much money have I/we spent?
- Have I/we dipped into our savings; if so, how much?
- If I/we continue to spend at this rate, what will happen in the next six months?
- Are there any upcoming purchases or expenses I/we need to prepare for?
- Are my/our insurance policies in order?
- Are my/our passports, drivers licenses, and any other official documents coming up for renewal?
These basic questions may lead to further discussion or development, or it may be a simple “check, check, check, we’re good” affair, done before the wine you poured has even aired.