Mid-Year Money Review Checklist
Mid-year is a perfect momentum to take a brief stop and review your expenses. Make time to check your budget and cash flow to avoid a financial crisis at the end of the year.
There are still many things that await you in the next six months. Therefore, a careful check on your financial condition is a must. Here’s a handy list of things you should check on.
Budget
Check your cash flow to know whether you are overspending your money or not. If yes, go back on track and create a new scenario for your budget. Make sure to cut off unimportant expenses.
Emergency Fund
There are necessities that can come unexpectedly, that’s why having an emergency fund is very important. We recommend you set aside bonuses, raises, and extra income until you have six months’ living expenses.
Payment Due Dates
Make sure to keep on tracking your payment due dates. If you have credit cards, you can set a due date that works for you.
Retirement Savings
No matter how high your salary is, it doesn’t guarantee you’ll be working in your company forever. Make sure you have retirement savings by setting aside a certain amount every time you get a raise.
Winter Finances
There are usually many events during winter and electricity bills are usually higher. You can start planning ahead of time for your Christmas and end-year necessities. Manage your electricity bills, gifts, and holiday travel.
If you need further guidance on saving money for Chirstmass, check out Save $1000 or more by Christmast.
Taxes
You can make charitable contributions to lower your tax bill. It’s also better to have a financial advisor to help you discuss tax-loss harvesting and other strategies.
Income
If you need extra income, you can come up with hustle activities. You can develop a home business and engage your family. If you are in the urge to get cash, try doing a garage sale.
Fun
There are many options for affordable entertainment. Going to cinemas, parks, or just visiting the city center can be a good alternative. You can also save rewards points for family trips later.
Credit Terms
Always check and review your credit card fees and APRs. Get rid of expensive credit cards that don’t provide value. Lastly, look for a balance transfer that offers help to get you out of debt sooner.
Credit Reports
Checking credit reports can help you find out whether there are errors or not. A way to do it is by comparing your credit reports from AnnualCredditReport.com and Credit Sesame. Immediately request correction if you find any.
Credit Health
Make sure your credit health is secured. Log into your Credit Sesame member dashboard and monitor your progress in paying off debt. There may be money-saving offers waiting for you.
Conclusion
Doing a mid-year financial review can help you secure your finances and avoid a crisis. It’s more than checking your bank account and correcting errors but also making plans for what’s ahead.
Managing your income and expenses ahead of time helps you be more at ease. Most importantly, avoid you being in a financial crisis.
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