Summer is flying by!
It's the middle of July, and we're officially more than halfway through the year.
As we're sweltering in the summer heat and humidity, we want you to find a cool, quiet spot and think back to January. Did you make any financial resolutions? Did you want to save more, spend less, invest and meet any money goals?
Now that it's summer, you should consider making small investment of time to revisit your resolutions and goals, assess your progress and see what you can adjust for the rest of this year. Here are a few steps you can take to complete a mid-year budget checkup!
Step 1: Revisit Your Budget
Are you sticking to the planned budget for every category? Are you overspending in some categories or under-spending in others? Do you need to adjust your budget in some areas or maybe trim your discretionary spending across the board?
Review your spending over the last few months and make any necessary changes so your budget can continue working for you.
By reviewing and adjusting your budget, you will avoid falling into the mindless spending trap and you will be taking proactive steps toward staying on top of your finances for the rest of the year.
Step 2: Check Your Credit Score
Your credit score is like your money grade, indicating the degree of your financial wellness and responsibility. Visit AnnualCreditReport.com for your free credit report from any of the three major credit bureaus: Experian, TransUnion and Equifax.
If your score has gone up in the last six months, you’re doing great! Keep up the good work.
On the flip side, if your score has dropped, review your report in detail. Are there any errors you’ll need to get corrected? Is there a credit card bill or another line of credit you’ve been neglecting that is dragging your score down? Are you having trouble remembering to pay your monthly bills in a timely manner? Take the necessary steps to boost your score today, whether that means contesting a charge, setting up an automatic payment on some of your bills or lowering your credit utilization by paying with plastic less often.
Step 3: Review Your Investments
Now is the time to review and adjust all of your investments. This includes your contributions to your retirement funds, any stock investments, bonds, trust funds or savings certificates at Commonwealth One. Make sure you are maximizing your contributions when possible and that your other investments are performing according to plan, making adjustments as necessary.
Step 4: Review Your Financial Resolutions and Long-term Goals
Which financial resolutions did you jot down at the end of last year? What are your dreams for the future? Did you want to start socking away another $200 a month? Is your goal to retire comfortably at 55?
Take some time to review these goals and to determine whether you are indeed taking the steps necessary for making them happen. If you’ve been neglecting them for the first half of 2022, create a plan for working toward them for the rest of the year. Remember: With determination and proper planning, nearly any financial goal is possible!
We hope you're having a fun summer and have been able to take some time off from the daily grind. We're here to help if your mid-summer budget checkup is prompting you to do more to get out of debt and on a solid savings and investment plan -- all you have to do is call, click or stop by a branch.
