It’s a good idea to do a midyear financial checkup. Think of it as an informal self-review of your personal finances that will help you determine how effectively you’re spending, saving, and managing money and supporting a bright financial future.
To begin, ask yourself these questions:
Your financial health check begins with your goals. Before you look at the contents of your savings account, think about what you want in life. Whether you’re saving for a new car, a dream vacation, or higher education, picture those goals. If you’re regularly contributing money to your savings, you’re off to a great start. If you aren’t, figure out why. If you feel like your funds aren’t growing quickly enough, look for dedicated accounts that will help, such as high yield savings accounts, vacation club accounts, educational savings accounts and certificates.
Our Savings Goals Calculator can help you get started and show how much you’ll potentially save over time.
It’s never too early to start saving for retirement, and it’s never too late to start saving more. Whether retirement is years away or just around the corner, your plan should be a major financial priority.
If you want a healthy financial future, track and look for wasteful spending. If you never read the magazines you subscribe to, cancel them. Stop automatic payments you’re still making for things you don’t use, like streaming services or gym memberships. Determine if you have any bad spending habits, like eating at restaurants too much or buying too many clothes. Set appropriate budget limits for these expenses.
Check your credit report regularly to stay ready for new financial needs (like a mortgage or auto loan) and help protect against fraud and identity theft. Request your free credit reports through AnnualCreditReport.com. Look for any possible errors, outdated information, transactions you don’t recognize, or other surprises. Address any issues right away. As an American Heritage member, you can also check your FICO® Score for free through our Online Teller.
Your emergency fund should cover at least a few months’ worth of expenses in case you become unemployed, have a major medical expense, need to pay for a home or car repair, or have another unplanned expense. If you haven’t started an emergency fund, consider setting aside funds into a dedicated account.
Are you struggling to keep up with loan payments or only making the minimum payment on high interest credit cards? Now could be the time to create and stick to a budget that makes paying off debt a higher priority. If you’re struggling with debt, consider seeking outside guidance so you don’t have to tackle this challenge alone.