Summer is well underway, and your dreams and days may be filled with beach trips, vacations, and other summer fun. But have you taken a second to think about how all this summer fun could affect your bottom dollar?
Since July is also the halfway point of the year, now is a great time to sit down with your finances and dig deep. It may not be as fun as digging your toes in the sand on a beach, but it just may allow you to afford more fun throughout the rest of the year.
Budget Check-Up
No matter if you don’t yet have a budget or if your budget could use some serious cleanup, a budget deep dive is a great way to start your mid-year financial health check-up . Have your expenses increased? Are you spending more than usual? What does your debt look like? Take a look at your bank and credit card statements to get a better picture of how your spending and savings have shifted so far this year.
Additionally, have you experienced any major life events such as starting a new job, getting engaged , or having a child? If so, look at ways that your life changes could affect your budget, such as having to cut down on your monthly entertainment or other expenses so you can save more for an upcoming wedding or cover new expenses such as childcare.
Answering these questions can help you assess your current financial situation and determine where you need to make adjustments. Don’t panic if your budget seems a ways off from where you first began, as it happens to all of us at some point. Take the time now to see what’s causing you to go over (or under) budget and brainstorm ways to revise your spending to get the most out of your money for the rest of 2023.
Financial Goals
Did you set any 2023 financial goals? Now may be a good time to review the progress you’ve made toward them, or even create new ones. It may be smart to start with some short-term goals that can help get you into the habit of setting goals and being accountable for reaching them. For instance, you may decide to start investing or set up an investment account that can help you reach a larger financial goal.
Once you’ve established some realistic short-term goals, you may want to dip your toes into some more long-term financial goals. For instance, do you want to achieve a level of financial freedom that doesn’t require you to work a 9 to 5? Other longer-term financial goals could include starting a business or buying a home.
Thinking About Your Future (Financial) Self
You’ve got your daily budget in check and some shorter-term financial goals set up for the rest of the year. But what about your future self? Exercising financial discipline today could help you reach life-long financial goals, like taking a dream solo travel trip or beefing up your retirement savings.
Generally, the sooner you start planning for retirement, the better. This could include setting goals like maxing out your company’s 401(k) match or opening up a Roth IRA. But it may also mean taking a closer look at your lifestyle and finding ways to simplify your lifestyle now so you can enjoy a better one in retirement. For instance, you may want to embrace a minimalist lifestyle starting this year to help improve your life and financial standing in the future.
Around the Web
Need some more help getting a better hold of your financial footing? Here are some more tips from around the web to help you get started:
• Five Ways To Get The Most From Your 2023 Financial Check-Up
• Worried you’re mismanaging your money? Give yourself a financial checkup in 7 simple steps
• How to Create a Financial Plan Like a Pro
The Takeaway
The year may be halfway over, but that doesn’t mean it’s too late to get your finances back on track (or take steps to ensure you stay on track for the rest of the year!). Take some time now to review your budget, look for ways to cut costs, set or recommit to your financial goals, and identify some steps you can take this year to make progress toward your long-term financial and life goals.
Need some extra help beefing up your savings? SoFi Insights is a budgeting app that can track your cash, set up financial goals, and help you keep tabs on your spending.
Learn more about how SoFi Insights can work for you.
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