It’s that time of year where most of us take stock and think about what we want in life.  And, more often than not, money seems to be the killjoy that throws cold water on our hopes, dreams and desires. “If I only had more money, I could….” While it might seem like financial success is about how much money we have, I’m convinced that it’s really about how well we align our money with our intentions, goals and values.

Here’s a basic financial check-in that you only have to do once a year, and I guarantee that knowing what you want and getting a handle on where you stand with your money will pay better dividends than any hot stock tip:

1. Set authentic, realistic goals – Figure out what you want to achieve personally and financially in the coming year and commit to the goals in writing.

2. Check in on your net worth – Pull out your recent property assessment, your year-end bank account, investment, mortgage and loan statements and make two columns.  Write down and add up what you own (assets) in one column and what you owe (debts) in the other.  The difference between the two is your net worth and your financial starting point for the year.

3. Create a spending and savings plan – Tally up what you expect to earn after tax and deductions (your cash inflows) and what you expect to save and spend next year (cash outflows).  If your expenses (cash outflows) exceed your income (cash inflows), then do whatever you can to change your spending plans – and ignore all the hype about investments, no matter how enticing the pitch sounds until you have a strong financial foundation in place.

Check out our WFLC worksheets to help you with your annual financial check-in. Or better yet, register for one of our upcoming courses Build Your Own Financial Plan or Sheila’s Debt-Free Challenge and make 2009 the year you finally take financial control.

Sheila Walkington is the co-founder of the Women’s Financial Learning Centre.