Spring is a busy time of year.
From graduations and other end-of-school-year events to youth sports, holidays, and family celebrations, everything seems to stack up. Add the anticipation of that summer vacation on the near horizon, and it’s no wonder personal finance can take a back seat in the spring.
But here — nearly midway through the year — is a great spot to take a “pit stop” and assess your financial progress. A mid-year review allows you to catch any shortfalls early and adjust to keep you on track with your goals.
Here are five key areas to examine:
1. Revisit Goals Set in January
Did you set financial goals at the beginning of the year? How are you progressing? If you’re where you need to be — great! If not, let’s take some time to adjust. Maybe your goals have shifted. Life happens, and your financial plan should evolve with it.
2. Check Your Budget
When you were setting your goals, did you create monthly and annual budgets? I hope you did! If so, now is a great time to evaluate whether you’re staying true to those budgets or if you need to make some tweaks. Budgets are a crucial part of your personal financial plan, but they only work when they’re properly planned and followed. As the saying by Cornelius Fichtner goes, a plan without action is futile; action without planning is fatal.
3. Review Your Retirement Contributions
Retirement contributions can run on autopilot. They’re mostly completed via automatic contributions into workplace retirement plans or IRAs. But let’s check in. Are you on schedule to max out your contributions? Do you have room in the budget to increase? This is also a great time to make sure your investment elections align with your long-term goals.
4. Review Personal Legal Documents
Wills, trusts, powers of attorney, and other legal documents can also fall into that out of sight, out of mind category. Take a moment to locate these documents and make sure they are current and up to date.
5. Review Insurance Policies
Take some time to review your home, life, and auto insurance policies. Make sure they match with your current situation and that beneficiary elections are current.
I, too, would rather be grilling, golfing, or hiking in the woods. But taking just an hour or so to cover these bases can make a substantial difference. A few small updates can help keep your year on track.
We at Rea Wealth Management look forward to working with you to help meet your goals. Have a great summer!
By Max W. Feller
Financial Advisor
This material is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation. Certain sections of this commentary contain forward-looking statements based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is not indicative of future results.
Securities and advisory services offered through Commonwealth Financial Network®, member FINRA/SIPC, a Registered Investment Adviser. Additional advisory services offered by Rea Wealth Management, a Registered Investment Adviser, and fixed insurance products and services are separate and unrelated to Commonwealth.