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Money Matters Blog

Tuesday, August 6, 2019

7 Steps to a Mid-Year Financial Checkup

It feels like you just packed away the holiday decorations yesterday, but believe it or not, 2019 is already half over. As we sail into the season of barbecues and beaches, take a few minutes to give yourself a mid-year financial checkup. A small investment of time can spur important changes that can affect your financial wellness for the rest of 2019 or even for years to come.

Use the seven steps detailed below to guide you through your checkup. 

Step 1: Revisit Your Budget
Take some time to review your monthly budget. Is it working for you or are you falling behind each month? After reviewing, adjust your budget as necessary.

Step 2: Anticipate Large Expenses
List any large expenses you anticipate in the coming six months. This can include household appliances that may need replacing or an anticipated medical expense that is not fully covered by insurance.

Next, determine the spending category you will take the money from to cover these expenses. If you do not have enough money set aside for these expenses, build a savings plan into your monthly budget so you have the funds available when you need them.

Step 3: Review Your Tax Withholdings
Review your tax withholdings to see if they need any adjusting. Your goal here is to pay the perfect amount so you’re not hit with a huge tax bill at the end of the year, but you’re also not lending the government your money all year long.

Step 4: Check Your Credit Score
Visit AnnualCreditReport.com for your free credit report from any of the three major credit bureaus. If your score has gone up in the last six months, you’re doing great! Conversely, if your score has dropped, review your report in detail. Take the necessary steps to fix your score today, whether that means contesting an erroneous charge with the Federal Trade Commission, setting up an automatic payment on some of your bills or lowering your credit utilization rate by paying with plastic less often.

Step 5: Review Your Investments
Review and adjust all of your investments. This includes your retirement funds, any stock investments, bonds, trust funds or share certificates. Make sure you are maximizing your contributions when possible and that your other investments are performing according to plan. Adjust as necessary.

Step 6: Tackle Your Debt
List every outstanding debt you carry, including credit card debt and all kinds of loans. Designate one debt to tackle first and work on a plan to pay it down. Once you’ve paid off this debt, move to the next one on your list.

Step 7: Review Your Financial Resolutions and Long-term Goals
Review the financial resolutions and goals you dreamed up at the end of 2018 and then determine whether you are taking the steps necessary for making them happen. If you’ve been neglecting them, create a plan for working toward them for the rest of the year. Now you can kick back and enjoy the season, guilt-free. Happy summer!

Your Turn: What’s on your list for your mid-year financial checkup? Tell us about it in the comments.

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