Every family can benefit from a mid-year review of their finances. With the economic decline in recent years more families struggling to keep their finances on track., Performing a mid-year financial review can help you identify any financial issues that need adjustments in order to keep yourself out of debt and stick to your budget. Below are a number of tips to performing a personal mid-year financial review that will help you budget and plan for the rest of the year:
Are you Saving? Good fiscal management is making sure you are bringing in more money than you are spending. Review your finances to see if you are coming out ahead each month and are able to save money. Look at what you have been bringing in and spending in the last six months. If you are spending more, examine where the excess spending is going so you can find ways to cut back and balance your budget. For instance, are you spending a lot of money on restaurants, fuel, cell phone minutes, etc?
Unplanned Expenses: Check to see if there have been any unexpected expenses such as vehicle repairs, medical bills, home repair, etc. If you have had an unplanned expense look for ways to reduce costs in other areas to re-balance your budget such as cutting costs on entertainment activities, carpooling to work, etc.
Emergency Fund: Check to see if you have been setting aside money each month for an emergency fund. If you have neglected to contribute to an emergency fund plan to start making contributions now will significantly help if there is an unexpected expense such as a medical emergency or break down of a system in the home such as the plumbing system.
Special Occasion Budgeting: Throughout the year there are a number of special occasions such as holidays that will require increased spending. If you have not implemented a holiday budgeting plan this is the time to establish one. It will make the holidays much less financially stressful when it is time to buy gifts. It will also help reduce the chances of using credit cards to pay for presents.
Future Financial Security: It is important to consider your financial security in the future. You want to have a plan in place that will help you live comfortably. For instance have you been making contributions to your retirement savings plan? In addition, have you set up an education account for your children? Planning for the future is a key part of practicing fiscal responsibility.
Your yearly budget can often change throughout the year which is why it is important to review your finances mid-year. It will help you keep your finances on track. If everything looks good and you are on track then you can continue with your financial plan. But, if you find you are overspending you can make the important adjustments to your budget to ensure you stay out of debt throughout the rest of the year.