Forward Bank

With the first half of the year in the rearview mirror, summertime is a great chance to touch base. A mid-year financial review can help to take stock of your accomplishments thus far and uncover any needs for adjustments. It’s important to regularly evaluate your financial situation, and a small investment of review time can help ensure you’re on track for both short and long-term objectives.

Here are a few areas to examine:

1. Review financial goals

Mid-year is a perfect time to check on your financial goals or start new ones. It's best to have short, medium, and long-term financial goals for yourself and household. Take stock of your overall financial resolutions and goals to determine whether you are making appropriate progress or if there’s a need for adjustments. 

2. Revisit your budget

Assess any significant life changes that may impact your financial needs such as marriage, the birth of a child, divorce, or job change. Determine if any recurring costs could be eliminated or any spending habits tightened up.

• Check Subscriptions. Use your monthly credit card bill or bank statements to evaluate all of your subscriptions including magazines, newspapers, satellite radio, streaming services, etc. 
• Shop Around for Insurance. When was the last time you looked for a better rate on your auto or homeowner's insurance? It may seem like a hassle to switch insurance companies, but you may find a better price if you shop around.

3. Tackle taxes

Do you only focus on taxes right before tax time, when it may be too late to implement effective tax-saving strategies? Review your investments and tax withholdings to make sure you’re incurring the smallest tax burden possible. Also, look for opportunities to maximize charitable deductions, use an FSA account, or make adjustments that could lighten your tax load.

Consult a tax professional for advice.

4. Assess savings

Use a mid-year financial check-up to evaluate your retirement and general savings funds. Check on retirement savings to assess progress and determine if you need to increase contributions or not. Consider account types, contribution sources, and tax implications.

You should also have at least three months of living expenses in your emergency fund which can help if you lose your job, have an unexpected medical bill, incur necessary home repair costs, have a sick pet or need to make car repairs. If you’re not there yet, don’t worry! Look to see how you can start building it up and consider setting up automatic deposits. Also, check out "Your Emergency Fund: How Much is Enough?" for additional tips on saving money.

5. Check on credit

A credit score is a number that rates your credit risk. It can help creditors determine whether to give you credit, decide the terms they offer, or the interest rate you pay. Having a high score can benefit you in many ways. It can make it easier for you to get a loan, rent an apartment, or lower your insurance rate.

The information that affects your score includes:

• Payment history
• Outstanding balances
• Length of credit history
• Applications for new credit accounts
• Types of credit accounts (mortgages, car loans, credit cards)

It’s a good practice to pull a free credit report every year to make sure your personal and financial information is accurate. It also helps to make sure no one has opened a fraudulent account in your name. The three major bureaus (Equifax, Experian, and TransUnion) offer a free report every 12-months. If needed, adjust where possible to improve your credit score.

6. Evaluate debt

For the average American household, constantly working to pay down debt is a reality. Debt can be a major expense and a hindrance to making progress on goals. Review outstanding debt and what progress has been made toward eliminating it, adjust any habits to prevent you from incurring more. And if you don't already, make a debt repayment plan. 

The year is still young! Even if your review reveals a diversion from your goals, there is still time to modify and put things back on track. Forward Investment Services can help identify the areas that require a bit of extra attention and make needed changes to improve them by the end of the year.