Mid-Year Financial Check Up from a Financial Advisor
We all begin the year with good financial intentions, but life often gets in the way. Unexpected rent increases, medical issues, or even positive changes like a pay raise can impact your finances. That's why a mid-year financial review is crucial for achieving your 2024 financial goals.
Before diving in, let's understand what a mid-year financial review entails. It means looking at how you spend money, your budget, savings, debts, and overall financial situation to make smart choices.
How To Do A Mid-Year Financial Review
We know this might sound daunting, so we've simplified it into eight steps to help you manage your money effectively.
Review Your Spending for Strengths and Weaknesses: Start by analyzing where your money has gone in the first six months. Use bank statements or budgeting apps like Cleo, Empower, or Quicken Simplifi. Identify trends and unexpected expenses, and make informed spending decisions for the rest of the year.
Check in on Your Financial Goals: Reevaluate your financial goals for the year. Adjust them if your circumstances have changed, such as expecting a child or switching jobs. Mid-year is a great time to recommit to your targets.
Realign Your Budget: Update your budget based on your spending review and financial goals. Adjust for changes in income and spending categories to ensure your budget aligns with reality.
Prioritize Managing Debt: Focus on paying off debt using methods like the debt avalanche or debt snowball. Choose the right option for you and seek assistance from debt settlement firms or credit card consolidation loans if needed.
Secure Your Emergency Fund: Aim to save three to six months' worth of expenses in an emergency fund. If your fund is already secure, consider moving it to a high-yield savings account for better returns.
Plan for Retirement: Maximize your retirement savings by taking full advantage of your company’s 401(k) match and considering IRAs. Make regular contributions and adjust based on your financial review.
Review Investments: Check in on your investments to ensure they align with your risk tolerance and financial goals. Avoid making knee-jerk reactions based on short-term market changes.
Double Check Your Taxes: Organize your tax documentation and ensure your withholdings are accurate. Adjust your tax payments based on changes in your financial situation to avoid surprises during tax season.
Bottom Line
Completing a mid-year financial review helps you feel more in control of your finances. Whether you’re focusing on debt reduction, building a nest egg, or saving for a big adventure, you now have a plan to achieve your goals. Consulting with a financial advisor can be helpful as well to achieve your financial goals.
Get ready to make the most of the rest of the year!
Sources:
https://www.thepennyhoarder.com/save-money/mid-year-financial-review/
Disclosures:
This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.
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This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.
These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.