Time For a Mid-Year Financial Check-Up
Believe it or not, 2010 is more than half over. That means it’s time for a mid-year financial checkup.
“We’re accustomed to physical check-ups which help us stay healthy. We even take our vehicles into the shop for the once-over to improve their performance. It only stands to reason that we should do the same for our finances,” said Melinda Opperman, Springboard’s senior vice president of community outreach and industry relations.
Springboard Nonprofit Consumer Credit Management suggests that consumers review the following areas and take action where necessary:
- When was the last time you looked at your New Year’s Resolutions list? Are you meeting the financial objectives you set for yourself six months ago? If not, remind yourself of why you set those goals, and why implementing them will put you in a better financial situation.
- Is your savings account growing? Perhaps it doesn’t exist at all. The absence of a savings account, or a poorly funded one, puts you and your family on a very slippery financial slope. The people who have the hardest time saving are often the ones who most need a safety net in case of an unplanned expense or emergency.
- Are you maximizing the potential interest on your savings? Many banks and credit unions now offer interest on accounts that is remarkably high compared to standard rates for such accounts. Shop sites such as www.checkingfinder.com or www.bankrate.com to research the rates and terms. You usually have to meet some minimum requirements such as a certain number of debits during the month, a direct deposit or draft from your account, and agree to receive your statements online rather than by mail, but the interest rate often makes jumping through these hoops very doable. Always make sure that the financial institution where you deposit your money is FDIC or NCUA insured.
- Are you tracking your spending? People work hard for their money, but spend it with abandon. Even if you feel as though you have control of your spending, you won’t know for sure until you track it for at least 30 days. Write down every cent you spend, and then put your spending into categories. At this point you can make conscious decisions regarding how you want to spend moving forward.
- Have you ordered a copy of your credit report? Your credit report is basically your credit reputation. It is a reflection of who you’ve borrowed from in the past, and how you repaid them, and is the basis of your all-important credit.
Photo: daviddmuir
