A lot can happen in six months. That\u2019s why, as we close out the first half of the year, it makes sense to check in on your financial life.<\/p>\n\n\n\n
\u201cWith inflation, I think people this year are more heavily impacted than they probably have been in many years leading up to this point,\u201d says Jason Dall\u2019Acqua, a certified financial planner and founder of Crest Wealth Advisors in Annapolis, Maryland. \u201cSo it\u2019s a good time to see how things have been going \u2026 as well as plan for what lies ahead in the remainder of the year.\u201d<\/p>\n\n\n\n
So where should you start? Add these four items to your midyear money checklist.<\/p>\n\n\n\n
1. Review your income, expenses and goals<\/strong><\/p>\n\n\n\n You don\u2019t have to tally up every penny you\u2019ve made and spent over the last six months. But taking a few minutes to check a bank or budget app<\/a> can help you better understand your finances and course-correct if necessary.<\/p>\n\n\n\n \u201cRight now with inflation, even if you had a budget back in January, it probably is not the same as it is today. There are some things that are going to need to be changed. So it\u2019s just really resetting and figuring out where you stand today versus where you thought you were going to stand today,\u201d says Kayla Welte, a CFP with District Capital Management who lives in Denver.<\/p>\n\n\n\n Look for opportunities to scale back if you\u2019ve spent more than anticipated. For example, you can dine out less or cancel subscription services you rarely use. \u201cAny excess spending that you\u2019ve been doing, you may have to cut down to account for this higher cost of things that you absolutely have to buy,\u201d Welte says.<\/p>\n\n\n\n If you set money resolutions or other financial goals<\/a> earlier this year, check on those too. Have you saved as much toward retirement or an emergency fund as you planned? Are you on track to pay off debt?<\/p>\n\n\n\n 2. Deal with debt<\/strong><\/p>\n\n\n\n Debt is becoming more expensive to carry due to rising interest rates<\/a>. Pay down debts sooner, particularly those with variable interest rates, to save money. These debts might include credit cards, personal loans or adjustable-rate mortgages.<\/p>\n\n\n\n Concentrate on reducing your highest-rate debt first, then move on to the next highest. Dall\u2019Acqua also suggests switching from variable-rate to fixed-rate options by refinancing, if possible. \u201cIf you can lock in the fixed rate now, you\u2019re likely to be saving yourself significantly in interest costs over time,\u201d he says.<\/p>\n\n\n\n Be aware of end dates for loans in forbearance. For instance, federal student loan payments will resume on Sept. 1, barring another extension.<\/p>\n\n\n\n \u201cAt this point they have been on pause for nearly two years,\u201d Dall\u2019Acqua says. \u201cSo if that money has gotten lost within [people\u2019s] overall spending, it\u2019s going to be a big shock when they then have to resume paying.\u201d<\/p>\n\n\n\n Setting aside money now in a separate savings fund can help soften the blow.<\/p>\n\n\n\n 3. Plan holiday shopping<\/strong><\/p>\n\n\n\n Inflation could make holiday gifts a little pricier this year. Create a shopping list and think about how much you can afford to spend. \u201cFigure out what that would require for you to start saving on a weekly or monthly basis and start putting that money aside right now,\u201d Dall\u2019Acqua says.<\/p>\n\n\n\n Starting on shopping early can also help you manage the cost without accruing debt. Many retailers host major sale events in the summer, so you\u2019ll find discounts well before Black Friday. Amazon\u2019s Prime Day is coming in July. So is the Nordstrom Anniversary Sale.<\/p>\n\n\n\n 4. Examine your taxes and benefits<\/strong><\/p>\n\n\n\n Welte recommends using an online tax calculator<\/a> to check whether you\u2019re withholding too much or too little. This can help you avoid getting hit with a big tax bill unexpectedly or missing out on extra cash you may need now.<\/p>\n\n\n\n \u201cIf you do the math and you\u2019re going to get a $6,000 tax refund, it would be a great time to change your W-4s, get more money in your pocket now to pay for these excess costs that are coming up with inflation rather than waiting until next April to get that refund,\u201d Welte says.<\/p>\n\n\n\n If you need to make adjustments, fill out a new Form W-4 (you can find this on the IRS website) and submit it to your employer.<\/p>\n\n\n\n While you\u2019re at it, evaluate your employee benefit selections. These benefits can include health insurance, life insurance, health savings accounts and flexible spending accounts, plus perks like gym memberships.<\/p>\n\n\n\n Reviewing your choices in the summer can prevent you from becoming overwhelmed in October and November, when open enrollment begins for most companies, says Joe Bautista, a CFP in Lake Oswego, Oregon.<\/p>\n\n\n\n The goal is to ensure you\u2019re choosing the most cost-effective options that suit your needs. For example, \u201ca PPO has higher premiums but a lower cost if you tend to use health care, lower deductibles and copays typically. But if someone doesn\u2019t use that health care, then they can be overspending,\u201d Bautista says.<\/p>\n\n\n\n Don\u2019t worry about getting everything perfect right now. As Bautista says, \u201cfinancial planning is dynamic, it\u2019s not static.\u201d Check in on your money plans periodically and update as needed.<\/p>\n\n\n\n This article was written by NerdWallet and was originally published by The Associated Press. <\/em><\/p>\n\n\n\n More From NerdWallet<\/strong><\/p>\n\n\n\n Lauren Schwahn writes for NerdWallet. Email: lschwahn@nerdwallet.com. Twitter: @lauren_schwahn.<\/p>\n\n\n\n The article 4 Items for Your Midyear Money Checklist originally appeared on NerdWallet.<\/p>\n","protected":false},"excerpt":{"rendered":"A lot can happen in six months. That\u2019s why, as we close out the first half of the year, it makes sense to check in on your financial life. \u201cWith inflation, I think people this year are more heavily impacted than they probably have been in many years leading up to this point,\u201d says Jason […]","protected":false},"author":7,"featured_media":2861,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"","attr_excerpt":["A lot can happen in six months. That\u2019s why, as we close out the first half of the year, it makes sense to check in on your financial life. \u201cWith inflation, I think people this year are more heavily impacted than they probably have been in many years"],"footnotes":""},"categories":[3],"tags":[7,8,21,27,35,33,32,22,29,20,10],"class_list":["post-2846","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance","tag-bank","tag-borrow","tag-checking","tag-credit-cards","tag-digital-banking","tag-insurance","tag-invest","tag-money-market","tag-personal","tag-savings","tag-services"],"yoast_head":"\n