Summer is finally in full swing, meaning we’re already about halfway through 2021. After a year like no other, we’re all excited to enjoy the warm weather with friends and family. If you have some time over the coming weeks, take a moment to slow down and check up on your financial wellbeing.
Here are six things you can do right away to make sure your goals are being met and your finances are in good shape before heading into the second half of 2021.
Review Your Budget
It’s possible your budget for this year looks a little different than it did in 2020. Many of us spent less on things like travel, vacations, eating out, entertainment and the holidays. If you didn’t revisit your spending budget for 2021, pause now and take a moment to identify areas where you may be spending more (or less) than last year.
Spending aside, it’s possible your income stream may have changed as well - whether you received a promotion, started a new career path or experienced a COVID-related job loss. If you’re still following the same budget as last year but your income has changed, reevaluate your budget immediately.
Please see my 50/30/20 blog for more budgeting tips.
Check Your Credit Score
Checking your credit score isn’t exciting, but it is an effective indicator of your financial wellbeing. Being proactive in checking your credit score now can give you time to identify potential problems (such as a missed payment) and work to resolve them.
Review Your Retirement Contributions
If you save for retirement through an employer-sponsored fund such as a 401(k) or 403(b), take some time to check up on your account. This year, the 401(k) contribution limit is $19,500 for those under 50 and $26,000 for those 50 and older. Checking in on your yearly contributions now gives you plenty of time to catch up or contribute more before the year ends.
Assess Your Tax Liability
Double-check your tax withholdings, making sure that you have the proper amount withheld or determining if adjustments need to be made. If you had significant income this year, you should discuss additional estimated tax payments.
Making sure your tax withholdings and estimated tax payments are reflective of your current situation for 2021 can help you avoid surprises come tax season.
Re-Evaluate Your Goals
After over a year of living through a pandemic, you are sure to have gone through some unexpected changes in your life. Now that the pandemic is coming to an end, there are even more changes likely to come. Now is an opportune time to revisit the goals you made at the start of 2021 and make sure they are still well-aligned with your current standings. If not, take a step back to look at your entire financial situation and future needs, and create new goals that better reflect them.
Take some time to prepare for the second half of the year. As life returns to normal, reevaluate your financial standings. Determine whether you’re on track to meet your goals, or if you need assistance, we are here to help.
Shari Greco Reiches