Alright, folks, it’s that time of the year when we pull out our calculators, grab a strong cup of coffee, and dive headfirst into checking up on our mid-year finances. It’s not as intimidating as it sounds! This mid-year review is your chance to take control of your financial destiny, identify areas that need a little TLC, and get back on the road to financial success.
1. Assess your current financial situation:
Picture this: you, armed with stacks of financial documents like a true financial superhero, ready to conquer your financial foes! Gather those bank statements, investment reports, and credit card statements. Calculate your net worth by adding up everything you own or have (value of cars or homes, savings, investments) and subtract what you owe credit card debt, mortgage, car loan, etc).
2. Review your spending:
Take a look at your income and spending from the past 6 months and break your spending down into categories (here’s some inspo on categories to use). The Brigit app can help you take a look at this—on the homepage, scroll down to the Finance Helper section and see a monthly breakdown of your spending by category. If you spot any trends or places where you’ve been a bit too generous, it’s time to tighten that belt (figuratively, of course) and make the necessary adjustments.
3. Examine debt and credit:
Let’s face it, debt can be as pesky as that never-ending pile of laundry. It’s time to tackle it head-on! Take a close look at your outstanding debts, those sneaky credit card balances, student loans, and car payments. Check out your repayment progress and be on the lookout for any hidden interest rate monsters. If you can slay those interest rates through refinancing or consolidating, you’ll be well on your way to financial victory!
4. Evaluate investment performance:
Hold onto your hats, investors! It’s time to roll up your sleeves and examine how your investments have been performing. Is your portfolio riding high or in need of a little boost? Take a hard look at your asset allocation and make sure it matches your risk tolerance and long-term objectives. If it’s time for a little shuffle, go ahead and rebalance those investments. If you haven’t started investing yet, here’s a helpful guide to get going with.
5. Assess insurance coverage:
Next up: review those health, life, auto, pet, and homeowner’s or renter’s insurance policies. Make sure they’re up to snuff and covering all your bases. If there have been any major life changes, like getting hitched or welcoming a tiny human, adjust your coverage accordingly.
6. Set SMART financial goals:
It’s time to get SMART about your financial goals, my friends! Be specific, measurable, attainable, relevant, and time-bound. Whether you want to build an emergency fund, demolish your debt, save up for that dream home, or retire like a boss, set clear goals for yourself. Here are some ideas to get you started.
7. Make adjustments and implement changes:
Pinpoint those areas that need a little TLC. Maybe it’s time to cut back on those daily fancy coffee runs or ramp up your savings game. Consider automating bill payments, exploring side hustles, or getting creative with money-saving tactics.
