The first half of the year has come and gone; the last half is upon us. This is a time where a lot of people reflect and readjust to make sure their goals are accomplished by the end of the year. During this time, allow yourself to celebrate the wins you’ve already had, address and adjust for any errors, and head into the next six months with a fresh and positive perspective.
Your finances deserve a seat at the table as you do your mid-year pulse check. Here are some things to consider:
Review current accounts
One of the first things to do in performing a financial checkup is to see where you currently stand. Check your savings and retirement accounts to ensure you’re earning the most in a high-yield account. Verify that your personal information and any beneficiaries are up to date. Additionally, make sure your emergency fund can cover 3-6 months of essential living expenses. This assessment lays a solid foundation for financial decision-making moving forward.
Review savings goals, balances
I’m sure all of us have done it; set a goal and then slowly forgot about it with the chaos of daily life. Financial goals forgotten are harder times ahead. So, make sure that you’re reviewing your account balances and focusing on any financial goals you have. If you spent the last couple months slacking on them, readjust your budget to hit them harder in the last half of the year. Maintaining a proactive approach ensures that your financial objectives remain a priority and are achieved effectively.
Review current spending
Daily coffee runs, vending machine snacks, a little toy every time the kiddo comes grocery shopping with you. These small, seemingly innocent purchases can add up to big bucks over time. It’s important to regularly review your statements and transactions to identify and plug any spending leaks you have. Additionally, identifying spending triggers like stress, boredom or sadness can help you keep impulse purchases to a minimum. By practicing mindful spending and understanding your spending patterns, you can make more informed financial decisions.
Review current debt
A debt review is important to see your whole financial picture. This includes reviewing all balances, identifying any opportunity to refinance for lower rates, and setting a plan for repayment. Your budget should be adjusted to include debt repayment and see areas where spending can be cut to pay more on your debt. Prioritizing repayment to higher interest trades or debts that have low balances can help determine your plan. This is also the time to review your credit reports from all three major bureaus to ensure accuracy of accounts and balances. Taking these steps empowers you with a clear understanding of your financial obligations and enables you to make strategic decisions for a brighter financial future.
As we enter the second half of the year, it's time to conduct a financial review to ensure you’re on track to meet your goals. Take a moment to celebrate your achievements thus far, address any missteps, and approach the coming months with renewed determination. Reviewing your current accounts, savings goals, spending habits and current debt is essential for financial health. By adjusting where necessary and staying proactive, you can steer your finances toward success and set the stage for a prosperous year ahead.
Rachel Caballero is the community and PR manager at local TruWest Credit Union.
