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June 28, 2024

Essential Mid-Year Money Moves for 2024

As we reach the halfway point of the year, June is an excellent time to review and adjust your financial plans. Here are key steps to consider:


1. Mid-Year Financial Review
It’s essential to take stock of your financial situation midway through the year. Begin by assessing your budget and spending habits. Have you stuck to your budget, or have unexpected expenses derailed your plans? If your spending has been higher than anticipated, identify areas where you can cut back. Revisiting your financial goals is also crucial. Determine whether you’re on track to meet them by year-end, and adjust your savings plan if necessary to ensure you stay on course.

How to Create a Budget – Investopedia
Setting Financial Goals – NerdWallet


2. Check Your Credit Report
Your credit report is a snapshot of your financial health, and maintaining it is vital. Request a free credit report from each of the three major credit bureaus: Equifax, Experian, and TransUnion. Reviewing these reports will help you catch and dispute any inaccuracies that could negatively impact your credit score. A healthy credit score can lead to better loan terms and lower interest rates, saving you money in the long run.

How to Check Your Credit Report – FTC
Understanding Your Credit Score – Experian


3. Reevaluate Your Investments
Investment portfolios need regular check-ups to ensure they align with your financial goals and risk tolerance. Review your portfolio’s performance and consider whether it’s adequately diversified. Diversification can help manage risk by spreading investments across various asset classes. If you’re unsure about how to optimize your investments, consult with a financial advisor. They can provide personalized advice to help you make informed decisions and maximize your returns.

Investment Portfolio Review – The Balance
Diversification Strategies – NerdWallet


4. Plan for Upcoming Expenses
Summer often brings additional expenses, such as vacations, home improvements, and back-to-school costs. Plan for these expenditures by setting aside funds now. Creating a specific savings plan for these expenses can prevent you from dipping into your emergency fund. By anticipating and budgeting for these costs, you’ll be better prepared and less likely to accrue debt.

Planning for Seasonal Expenses – Forbes
Creating a Savings Plan – Investopedia


5. Review Retirement Contributions
Maximizing contributions to retirement accounts like 401(k)s and IRAs is a smart move for long-term financial health. Ensure you’re contributing enough to take full advantage of any employer matches, as this is essentially free money for your retirement. Reviewing your contributions mid-year allows you to make necessary adjustments to stay on track with your retirement savings goals.

Maximizing Your 401(k) – Fidelity
IRA Contribution Limits – IRS


6. Tax Planning
Avoid tax season surprises by reviewing your tax withholding now. If you’ve experienced significant life changes, such as a new job, marriage, or having a child, your tax situation might have changed. Adjusting your withholding accordingly can help ensure you don’t owe a large sum next tax season. Additionally, consider making charitable donations or other deductible expenses that can lower your tax bill.

Adjusting Your Tax Withholding – IRS
Charitable Donation Tax Deductions – NerdWallet


7. Insurance Check-Up
Evaluate your insurance policies to ensure they provide adequate coverage. Life changes, such as purchasing a new home or having a child, can necessitate updates to your insurance. Look for potential savings by bundling policies or increasing deductibles. Regularly reviewing your policies helps ensure you have the necessary coverage while also finding opportunities to save on premiums.

Reviewing Your Insurance Coverage – Policygenius
Ways to Save on Insurance – III


8. Emergency Fund
Your emergency fund is a financial safety net, so it’s essential to ensure it’s robust. Aim to have at least 3-6 months’ worth of expenses saved. If your emergency fund is below this target, consider adjusting your monthly savings contributions to build it up. A well-funded emergency account provides peace of mind and financial security in case of unexpected events.

Building an Emergency Fund – Bankrate
Emergency Fund Calculator – NerdWallet


9. Debt Management
Managing debt effectively is crucial for financial health. Review your debt repayment plan and look for opportunities to make extra payments, especially on high-interest debt. Consider consolidating debts to lower your overall interest rates, which can help you pay off your debt faster and save money on interest. Staying proactive about debt management can improve your financial stability.

Creating a Debt Repayment Plan – The Balance


10. Financial Education
Staying informed about personal finance is essential for making sound financial decisions. Dedicate time to reading books, listening to podcasts, or attending webinars focused on financial literacy. Continuously educating yourself will empower you to navigate complex financial situations and achieve your financial goals with confidence.

Top Personal Finance Books – Investopedia
Recommended Financial Podcasts – Forbes

Taking these steps in June can help ensure you stay on track with your financial goals and make necessary adjustments for a successful financial year.