5 Mid-Year Money Moves to Consider Making
The summer months can be a great time to check on one’s finances and plan for the remainder of the year. By this point in the year, most people usually have a good grasp on their current financial situation, allowing them to make improvements and adjust their goals accordingly. In this article, we’ll discuss five mid-year money moves you can potentially make to help you get back on track and make better financial decisions as the year progresses.
#1: Consider Revisiting Your Budget
A budget should be a living document that reflects one’s income and expenses. The mid-year mark can be a good time to consider reviewing your budget and thinking about where you might want to cut back to save more money. Other considerations might include eliminating unnecessary subscriptions, reducing spending in specific categories, and finding ways to increase your income. Taking these steps may enable you to enjoy more financial freedom for the rest of the year.
#2: Consider Reviewing Your Investments
Looking over one’s investment portfolio is also a common mid-year money move. Many folks reconsider their portfolio’s returns and fees, assess how well they align with their investing objectives, and adjust their portfolios accordingly. In addition, you might consider reallocating funds to different investment categories, depending on your personal financial goals and risk tolerance.
#3: Consider Assessing Your Debts
Taking a look at how much money you owe others is another way to help get your finances in order. Some might consider making an extra payment toward their debts, reducing their interest rates if possible, and/or consolidating their debts to make it easier to keep track of them. Taking any of these actions will help ensure that you’re doing what you can to improve your financial picture.
#4: Consider Checking Your Credit Score
Having a good credit score matters a lot when it’s time to take out a loan, lease a car, or get a credit card; in fact, it can generally help you lock in a lower interest rate. Therefore, it’s important to check your credit score periodically to make sure it’s still in good standing. If your credit score is low, you may want to take steps to improve it by paying your bills on time, maintaining a good history of credit utilization, and seeking professional help if needed.
#5: Consider Updating Your Financial Goals
Lastly, one should reevaluate their financial goals as the year progresses. Consider assessing the goals you previously set for the year and potentially create new ones based on your current financial situation. If at all possible, it’s usually a good idea to set goals that are realistic, practical, and achievable given how much time is left in the year.
Most people think about their financial goals in January when the year has just started. While this is beneficial, it’s also wise to reevaluate everything around the middle of the year too. Doing so gives us the chance to make adjustments so we can stay on track. Following some or all of the above suggestions may potentially help you take steps toward achieving your financial goals.