Financial Review: Have You Maintained Your Budgetary Goals Midway Through the Year?
As we reach the halfway point of the year, it's an ideal time to reassess our financial plans, according to Cherry Dale, Vice President of Financial Education at Virginia Credit Union. Dale emphasises the importance of regular financial reviews, especially in light of potential changes in our financial situations.
One area to focus on is budgeting. Many people make New Year's resolutions to create budgets, but it's equally important to review these budgets mid-year to identify any changes or areas where savings can be made. This includes reviewing income and expenses, adjusting for inflation, and ensuring that your budget aligns with your current financial situation.
Another crucial aspect is reviewing your financial goals. Short-term goals, such as saving for a car or vacation, should be assessed to see if you're on track. Long-term goals, like retirement savings or buying a home, also need evaluation to ensure you're making steady progress.
Investment portfolio review is another key step. It's essential to ensure your portfolio is diversified across different asset classes and that your investments align with your risk tolerance. High-interest debt, such as credit card balances, should be prioritised for payment, while strategies for managing low-interest debt, like consolidating loans, may also be considered.
Don't forget about your emergency fund. It's important to ensure you have an adequate emergency fund to cover at least three to six months of living expenses. Adjust your contributions based on any changes in income or expenses.
Tax planning is another area that shouldn't be overlooked. Utilise tax-advantaged accounts like 401(k), IRA, or Roth IRA for retirement savings. Consider tax loss harvesting strategies for your investments.
Educational resources are invaluable in managing finances effectively. Look for financial education workshops or seminars offered by institutions like Virginia Credit Union, which can provide insights and tools for managing finances effectively.
Dale also advises reviewing insurance policies, such as health, auto, home, and life insurance, to ensure they still meet your needs. She suggests exploring options like opening an Individual Retirement Account (IRA) and encourages everyone to check their budget at the beginning of the year and mid-year to assess income, expenses, and progress.
Lastly, Dale questions if individuals are capitalising on the retirement benefits offered by their employer. If an employer does not offer retirement benefits, she suggests looking into individual planning options for retirement. Dale encourages people to review their progress towards their retirement goals to ensure they are on the right path for the rest of the year.
By following these steps, you can effectively reassess your budget and investments mid-year, aligning with the emphasis on financial education championed by Virginia Credit Union.
- To ensure your financial plan is on track, it's crucial to reassess your investment portfolio mid-year, focusing on diversification, risk tolerance, and paying off high-interest debt.
- In addition to reviewing your investment portfolio, it's essential to regularly evaluate your financial goals, optimizing savings for short-term objectives like a car or vacation, and making steady progress towards long-term goals like retirement savings or buying a home.
