Are You on Track Financially? Ten Questions to Assess Your Financial Plan

“Am I on track to reach my goals?” is a question financial planners field frequently—often during moments of transition, reflection, or uncertainty. It’s an important question, and one that rarely has a simple yes-or-no answer. Progress isn’t always linear, and being “on track” can mean different things depending on your life stage, priorities, and definition of enough.

Here are 10 questions you can ask—and answer—to better understand how closely you’re tracking toward your short- and long-term goals:

1. Do I meet the metric outlined in The Millionaire Next Door signaling financial independence?
   The authors provide a net worth “ideal” formula: your age multiplied by your income, divided by ten. If you meet or exceed this number, you are tracking well relative to financial strength and independence. If you’re not meeting this number, there are adjustments you can make to help close the gap. Boosting income (e.g., a better job, additional training or certifications, or sharing expenses with a roommate), trimming expenses, consistently adding to appreciating assets, and limiting unproductive, higher-interest debt are all key to hitting the target.
   
2. Have I outlined my goals clearly and established a timeline to meet them?
   When you know how much money you’ll need—and when—you can work backward to determine the required funding and growth needed to reach your targets.
   
3. Will I experience a significant life change that could impact my future desired state?
   For example, do you anticipate selling your home and moving to a lower cost-of-living area? Or do you plan to do the inverse—moving to a higher cost-of-living region or community? If you expect to significantly reduce expenses and benefit from the sale of a highly appreciated home in a more expensive area, it may be easier to meet long-term financial goals such as retirement.
   
4. Do I consistently revisit my numbers (e.g., semi-annually) to self-assess, celebrate progress, and make adjustments when necessary?
   Regular check-ins create awareness and momentum. They allow you to acknowledge what’s working, identify small course corrections early, and stay engaged with your plan rather than reacting only when something feels off.
   
5. Am I aware of—and aligning—the appropriate amount of risk across my investments?
   Is there any asset acquired opportunistically that has performed well and now represents too large a portion of my overall financial picture? As I get closer to long-term goals, have I intentionally dialed down risk to help manage volatility?
   
6. Am I supporting others in a way that limits my ability to invest in myself and potentially jeopardizes my long-term goals?
   Providing financial or emotional support to others can be deeply meaningful, but it’s important to do so within boundaries that protect your own long-term security. Thoughtfully managing these commitments—and revisiting them as circumstances change—can help ensure generosity doesn’t come at the expense of your future well-being.
   
7. Have I experienced a life disruption or short-term setback?
   It’s challenging to focus on long-term goals when carefully laid plans unravel, and life throws curveballs. There are strategies you can use to stem near-term losses, re-stabilize, and gradually re-engage in actions that support your longer-term financial plan.
   
8. If I’m tracking below my ideal state, am I comfortable adjusting expectations?
   Instead of private school, could a high-quality in-state public institution meet your goals? If you’re downshifting careers and reducing income for the longer term, it can be healthy to revisit expenses—including housing and vehicles—to “right-size” your life around a more sustainable income. As you approach retirement, it may also be reasonable to work a bit longer or transition to part-time work to supplement Social Security and investment income.
   
9. If I have a longer time horizon, am I comfortable viewing volatility as my friend?
   While it feels good to see investments grow steadily, periods of volatility can create opportunities to purchase assets at more attractive values—particularly when you are consistently investing over time.
   
10. Do I lean into activities that contribute to happiness and fulfillment without carrying a high cost?
    Examples include exercising and spending time outdoors, cooking high-quality meals at home, meeting friends for coffee instead of expensive dinners, and focusing spending on needs rather than wants.

Although this isn’t an exhaustive list, it’s a strong starting point for getting oriented and moving in the right direction. Over time—and through lived experience—our goals and targets are likely to evolve. At every age or stage, the key is to move past feeling burdened or anxious by the exercise and instead assemble the tools and tactics that feel right for you.