Mid-Year Check-In | Important Information from Our Financial Advisors
With the first half of the year in the rearview mirror, summertime is a great chance to check in on your finances. A mid-year financial review can help you take stock of your entire financial picture and how it’s lining up with your year-end goals. While conducting a thorough analysis of your wealth may sound intimidating, below are a few ways to check your financial health as summer ends.
Review Budget
In early 2024, the Bureau of Economic Analysis reported that the average personal savings rate was only 3.2 percent. An effective way to avoid spending more money than you are earning is to step back and take stock of your monthly and annual budgets. If you don’t have a budget at all, use this time to make one.1 Many credit cards or banks will offer categorical breakdowns of your spending, which can be a great way to find out what you’re spending the most money on and to determine if there’s room to cut back.
Tackle Debt
Debt can be a major expense and a hindrance to making progress on goals. While most consumers have some amount of good debt on their plate (mortgages, car payments, etc.), it’s the bad debt (credit card debt, student loans, etc.) that you’ll likely want to focus on managing and eliminating.2 You can’t tackle your debt if you’re unclear on how much you owe. To take stock of your current debt situation, write down all debt currently owed, along with the minimum payment amounts and due dates. Once you have everything laid out and organized in one place, you can begin focusing on how to minimize or eliminate certain debts.
Revisit Goals
A lot can change in a year – from life-altering events like marriage, death, or divorce, to joyous celebrations such as proposals or births, and unexpected challenges like property damage. That's why it's crucial to regularly review your goals. Every moment, big or small, can significantly impact your financial standing and aspirations.
Bulk Your Savings Back Up
For most people, summertime is a period of big spending. With family vacations, weekend gatherings, and outdoor activities, it may seem like your spending is never-ending. If you didn’t prepare for the influx of money going out, you may have had to dip into your savings account to cover the cost of all the fun. As we enter the second half of the year and summer comes to an end, it’s a good idea to think about how to refill your savings account. Challenge yourself to save a little more from each paycheck to refill your savings account and make sure you stay on track for your savings goals for the year.
- https://www.bea.gov/data/income-saving/personal-saving-rate
- https://www.bankrate.com/credit-cards/news/states-with-most-credit-card-debt/
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.