Every six months we need to change our clocks (forward or backward) by one hour. This is an ideal time to consider a financial checkup. This checkup would also give you an idea of how you are doing. This article lists four different items which should be high on anyone’s priority list.
Ideally you should always have an emergency fund equaling six months of actual living expenses. This emergency fund should always be kept in a high interest paying savings account. Check whether the last six months have brought any surprise expenses. Contribute to your emergency fund and bring it to six months of actual expenses if you have tapped it for during the previous six months. Life happens. You might have had a baby or got married or moved to a new place. These events will change your actual expenses. Take a deep look at your expenses and match your emergency fund balance.
Everybody knows that Credit Report and Credit History affects are financial lives in many ways. But knowing it and doing something about it are two different things! Take an active role in your financial lives. Check your credit report from one of the credit reporting agencies (Experian, Transunion, Equifax). You can order one report from each agency every year free of cost. Take advantage of the free report and check it out. Improve your credit score by removing inconsistencies in your report.
Visit the website: www.annualcreditreport.com
Rebalance Your Portfolio
Check how your investments are doing. Don’t get tempted to take any drastic steps. If you have properly diversified, then you should be good. Ensure that your allocation is not out of whack because of changing value of investments.
Open the two quarterly reports, your plan provider may have sent you. Check that all of your contributions have been credited correctly. Confirm that your investments are showing the correct balances. Keep the account appropriately diversified or invest in a target date fund, if you have the option. Increase your contribution (by 1%) to your plan if you have received a raise during the last six months. You will not miss the extra money.
If you have any financial tips, please comment below.