Whether 2011 was your best year ever or a year you’d like to forget, if you’re serious about making progress toward your financial goals your first step in 2012 needs to be a step back, evaluating the progress (or regress) you made this year.

You have to know where you are now before you can get where you want to go. You need to know what worked for you in 2011 – and what didn’t – to decide how to approach 2012. This 24-question evaluation will get you started.

My Challenge to You

Before you start setting your financial goals and resolutions for the new year, set aside 1-2 hours to work through this 24-question evaluation. Involve your spouse, significant other, or whoever else deserves to be a part of your financial conversation. Look back at your financial statements. Most importantly, be honest with yourself: you won’t make real progress otherwise.

2011 Year-End Financial Evaluation

1. I planned my budget at the beginning of the month every month this year?  Yes or No

• If No, for how many months did you plan your budget?

2. I tracked and counted my actual expenses each month this year?  Yes or No

• If No, for how many months did you track and enter your actual expenses?

3. For each month this year, I spent equal to or less than the amount I budgeted? Yes or No

• If no, for how many months did you spend equal or less than the amount you budgeted?

4. For the entire year, I spent equal to or less than the amount I budgeted? Yes or No
5. List the budget categories in which you most often spent less than or equal to your budgeted amount.
6. List the budget categories in which you most often spent more than your budgeted amount.

Not sure how much you should be spending in each of your budget categories? Check out this Recommended Percentages Form.

7. I have less debt today than I had at the beginning of 2011?  Yes or No

• If Yes, how much debt have you paid off in 2011?
• If No, how much new debt have you acquired in 2011?

8. I am current on all of my bills and payments?  Yes or No

• If No, how far behind are you and what is the total delinquent amount?

9. The total amount of my debt, not including my mortgage is  $__________________.
10.  My monthly debt payments, other than my home mortgage, account for ____% of my monthly expenses
11.  I currently have $___________ saved as an emergency fund.
12.  Is this amount more or less than you had in emergency savings one year ago?

• By how much?

13.  This year, I put money aside each month to prepare for non-monthly and irregular expenses?

• If Yes, how much do you put aside?

14. This year, I invested $___________ into tax-favored retirement accounts.
15.  Is this amount more or less than you invested in the previous year?

• By how much?

16. This year, I invested $__________ into educational savings accounts (ESA’s) or 529 college savings plans for my children.
17.  My retirement investment accounts yielded a  ____% return this year.
18.  My college investment accounts yielded a  ____% return this year.
19.  I gave _____% of my gross income to charitable organizations this year, totaling $___________.
20.  Is this amount more or less than you gave in the previous year?

• By how much?

21.  List 5 positive financial changes you made in 2011:
22.  List 5 financial decisions you made in 2011 that may have been harmful to your overall financial health.
23.  What 5 financial lessons will you take away from 2011?
24.  How will you put each of those 5 lessons into practice in 2012?

There is no reason that 2012 can’t be your best financial year ever. You may not make the most money you’ve ever made, but with the help of this evaluation you can find ways to make the money you do make go further than it ever has.

What changes do you plan on making in 2012 to reach your financial goals? Share in our comments section below.

Have a tricky question Clint and Katy can answer about your finances?
Email it to Editors@PerkStreet.com

Clint and Katy Davis are PerkStreet Customer Columnists and founders of Davis Coaching. As financial coaches, their passion is helping people become and stay debt free! Their personalized coaching is designed to help you get your financial life where you want it to be. Like personal trainers for your finances, they can help you develop a specific plan to achieve your goals, and provide the expertise and accountability to get you there. If you’re ready to take control of your financial life, visit Davis Coaching online, check out the Davis Coaching blog, and connect with Clint and Katy on Twitter and Facebook.