When was the last time you checked in with your financial goals since you set them in January? Be encouraged you still have time to evaluate your finances ahead of 2023. Right now is a fitting time to examine your savings, debt, and investments.
Being proactive can bring money-enhancing dividends. If you’re stashing more than you planned since the start of the year, figure out how to invest extra money or wipe out bills. Inspecting your spending habits mid-year can help you identify ways to cut back in the next six months.
The key is not to stop, but to make constant effort toward your financial goals. BLACK ENTERPRISE researched and gathered tips to give your finances a biannual lift.
Check out your credit reports again
Re-examining your credit reports at least twice a year can help you zero in on errors and fraudulent activity. Ask for copies of your credit reports from Equifax, Experian, and TransUnion, three of the major credit bureaus. This can be a wise move to see where your credit stands to determine if you need to request modifications if data are questionable.
Analyze your retirement savings
Do you know what’s in your retirement savings? Be sure to check if you can contribute more to your 401(k) savings plan. Many companies match three percent of what you save. Ask your employer if it offers workplace retirement plans like annuities as another investment option to build wealth.
Dig into possible tax-deductible expenses
The middle of the year is an ideal time to check into tax-deductible expenses before it’s time to file taxes for next year. Reports show millions of Americans pay too much for taxes due to claiming the standard deduction versus itemizing. Find out what is still tax deductible, like home mortgage interest or business expenses. Ask a tax professional which filing option will save you the most money. Find out what receipts and records you need to avoid hassle at the year’s end.
Go over your stock and investment options
Dire forces like rising inflation and a fragile stock market have made this a tough year for many investors. Don’t be afraid to research or get feedback from a financial adviser on new strategies and adjustments to consider now. For instance, reports have indicated a diversified portfolio consisting of small cap stocks and real estate investment trusts have offered returns that parallel or even outperform inflation and economic progress. Talking to a financial expert now might be vitally important.
Check out how life insurance can help build wealth
Many Americans don’t know that life insurance can help you build wealth beyond just covering expenses. Experts point to several permanent life insurance policies that can potentially accumulate cash value. The money can be used for such purposes as extra retirement income. But be sure to ask what type of policies are available and how much they cost to best fit your budget.
Don’t overlook these other key areas
Revisit your finances if you are sticking to the budget you laid out in January. See where you can cut or eliminate spending. Review contributions to your health savings account. Ask yourself, do you have the suggested six months of emergency savings put away to cover an unexpected crisis?