Tis the Season for a Mid-Year Money Checklist
Jul 11, 2024Building a Budget
As summer hits its stride, the idea of preparing for the holiday season might seem a bit premature. However, considering that money is the biggest source of holiday stress for 58% of US adults, July is the perfect time to review your finances and make adjustments. Doing this now can help you enjoy the holidays with less stress. Here’s a seven-item checklist to guide your mid-year financial checkup:
1. Review Your Budget
Start by examining your budget. Use a customizable budgeting worksheet or a free app to identify areas where you may be overspending. The goal isn’t to feel guilty but to save a little each month—aim for 10% of your income, but remember, every little bit counts.
2. Automate Savings
Consider automating your savings. The “set it and forget it” approach ensures that when the holiday spending season arrives, you’ve already set aside funds. Look into opening a holiday-specific savings account and start saving now to avoid high-interest credit card debt.
3. Strategize Debt Repayment
Take a look at your debts, including credit cards and loans. Focus on paying down high-interest debts first, which will save you money in the long run. You might also explore a debt management program to help you eliminate debt faster.
4. Check Your Credit Report
Sign up for our free credit reporting tool, SavvyMoney. Check for inaccuracies or signs of identity theft and dispute any errors. A clean report can improve your credit score and help you get better rates on loans.
5. Revisit Investments
If you have investment accounts, review them to make sure they align with your long-term goals and risk tolerance. Market conditions change, and your investment strategy should adapt accordingly.
6. Maximize Retirement Contributions
Check your retirement account contributions. If possible, increase them, especially if your employer offers matching contributions—this is essentially free money. The earlier you invest, the more time your money has to grow.
7. Review Insurance Policies
Review your health, auto, home, and life insurance policies to ensure they still meet your needs. Life changes like marriage, a new child, or significant purchases might require adjustments to your coverage or comparison shopping for better rates.
Get Connected
Talk to your financial institution about the resources they offer to help you prepare for the holiday season. If you need more support, GreenPath Financial Wellness provides free, judgment-free financial counseling with certified experts ready to help you.
By following this checklist, you can reduce financial stress and enjoy the holiday season with greater peace of mind.
Mylene Leasure
Financial Education Coordinator | HAPO Community Credit Union