Every year begins with the best of intentions, but bad habits are hard to break, particularly when it comes to money. June is a good month to review your finances and make sure everything is on track. If you’ve wavered, there’s time to get back on course and prevent any big surprises or problems before year end.
Review your financial goals – You probably have several savings goals. Your annual financial review should revisit each of your priorities. If your situation has changed, make adjustments as necessary. For instance, if you’ve been saving for a new home or your children’s college education, you might want to adjust those goals based on the current real estate market and college tuition costs.
Monitor Your Budget – Review your budget or start one if you’ve never made one before. The mid-year review should focus on whether adjustments can be made to save or invest more, particularly if more money is coming in from a raise or other resources. If spending is up by mid-year, it’s always important to know why and evaluate if that spending is absolutely necessary.
Debt Management -“Don’t spend what you don’t have” remains the ultimate truth in managing day-to-day finances. If mounting credit card balances are becoming an issue, it’s time to make a plan for paying those down, even a little each month, while taking steps to curb your use of plastic.
Review your Investments – It’s easy to just “set and forget” your portfolio, but unless you’re in some type of investment that automatically adjusts for the markets and your time horizon, you need to periodically check in and manage those investments yourself. Make any changes that might be necessary due to the past year’s market performance.
Retirement Savings – What about retirement savings? Are you contributing enough? A mid-year budget review should identify opportunities to increase retirement contributions either at work or in a personal retirement account.
Emergency Fund -. Do you have adequate funds saved to protect against an unforeseen financial disaster, such as a job loss? You should have three to six months of living expenses saved. While summer can be a drain on your finances – trips, kids out of school, additional entertainment – challenge yourself to less and save more. It could as simple as one less cup of coffee per day, or opting for a home cooked meal instead of an expensive dinner out.
Bottom line: A mid-year checkup can save time, money and help you stay on course on all financial issues. The good news is that it’s not too late to still make a difference in your financial health this year.
Make a mid-year checkup appointment. If you’re not sure you’re on the right financial path contact us at 603-6000 ext 6045
