A lot can happen in just six months so it may be time to take a second look at our finances as the middle of the year approaches. Whether it's a new member of the family or a new job life can change in just half a year's time.
Barry Malone, a certified financial planner, said it's a good time to review and adjust. First take a look at your savings allocations.
"Where we've been saving money. Normally during the middle of the year gets kind of volatile and we've seen that the last couple of weeks," Malone said. "You want to go back and see how things have performed. See any adjustments that you make and then it's probably a good time to try and re-balance your portfolio."
Take a look at your winners and losers and adjust your stocks and incomes accordingly.
"Make sure your allocation is based on your risk tolerance and your time frame and when you're going to need the money," Malone said.
Now, take a look at increasing your savings percentage. This may be the best time to do it and establish the habit.
"Maybe it's easier to think about doing that twice a year. Where you add just a little bit of percentage maybe just half a percentage point. It makes it a little bit easier trying to go incrementally then trying to make a big move at once. It reacts better within your budgeting," Malone explained.
Next, review your tax withholding's and start preparing for when Uncle Sam comes knocking.
"By mid year you normally know about what your income is going to be. Maybe if you received raises or you didn't, maybe you're in commissions or in sales where you draw a commission. You can begin to project, 'am I in pace for where I was last year or am I behind?' And you can adjust your withholding's accordingly," Malone said.
Finally, review your budget.
"Look at your actual expenses and compare those to what you actually had budgets and then see if you're on target and where you need to make adjustments," Malone said. "You may need to just reorganize some of your budget and readjust those numbers or you may need to change some spending habits to get back on course."
Remember to follow your budget closely the next six months so you can make up for overspending from the first two quarters of the year.
