Giving yourself few hours for a mid-year financial check-up this June or July can help you review how you’re doing with savings, investing, spending and debt.
It can give you the opportunity to spot lapses and enable you adjust your budget well in as you match towards year-end.
The half-year mark is the perfect time to evaluate how you are doing. If you have fallen off track, you still can make adjustments so that you reach your financial goals by the end of this year “2015”. .
Firstly, check your budget or create one if you’ve never had one before. The mid-year review should focus on whether adjustments can be made to save or invest more or pay off more debt 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 whether funds can be reallocated to better purpose.
Secondly, scrutinize your savings. At the beginning of each year, you should write down a savings goal to achieve by year’s end. This includes making sure you have at least six-nine months’ worth of living expenses set aside in an emergency savings fund to cover unexpected events like a medical crisis, job loss or costly car repairs. Now, at the mid-point of the year, you can see whether you are on track to reach those numbers.
If not, determine where, and how much, you can cut back to achieve your goal in six months. Of, if you find that you have more available disposable income than expected, now is the time to create a greater financial cushion.
You also need to review your retirement whether you’re maximizing your contributions at work or in your own personal retirement accounts.
Experts say those who reach age 50 by the end of the calendar year will be able to take advantage of additional catch-up contribution allowances to beef up their balances as they approach retirement.
The amount of money you keep in your emergency fund should also fit your needs, but consider a balance of four to seven months of everyday expenses in case there’s a short-term job loss or an emergency repair.
Consider keeping a year-round list of potential home, car or personal expenses and decide whether your emergency fund is adequate or you might need to set up other savings accounts to address bigger needs.
Finally, make sure all your recordkeeping is up to date. Mid-year is a good time to look over all your spending, saving and investment records to make sure all the numbers add up and underlying paperwork is in order. Also consider online banking, investing and bill payment as a way to save more time and money.
More importantly, always take a mid-year break to review your finances, its gives you a thoughtful opportunity to spot errors and adjust your budget.
TIAMIYU ADIO ISMAIL
