Amazingly, it’s already July 1st! With the year halfway over, now is a great time to review your finances for the year.
Your financial goals
Did you make financial goals at the beginning of the year? If so, how are they progressing so far? If you’re falling behind, don’t worry — you still have plenty of time to catch up. If you’re on pace or ahead of pace, keep it up!
If you didn’t make any financial goals back in January, set some today! What do you want to do with your money the rest of the year? Save more? Invest? Pay off debt? You don’t have to wait until the new year to make these your goals.
For help, check out our tips for making SMART financial goals.
It’s important to check your credit at least once a year. Regularly checking your credit will help you catch identity theft and mistakes on your credit report. This is especially important if you are planning on taking out a mortgage or some other type of loan in the near future: you want to make sure your credit report is as clean as possible to get the best interest rates.
Have you checked yours in the last 12 months?
Your net worth
Being financially healthy is built on a very simple, basic principle: making more money than you spend. If you spend more money than you make year after year, your chances of saving and avoiding debt dwindle. So how are you doing so far in 2015?
Perhaps the easiest way to check your net worth is to compare financial statements from the end of December 2014 to financial statements from the end of June 2015. In other words, add up the balances of your checking, saving, and investment accounts, subtract any liabilities (such as loans) and compare your balances from year-end 2014 to year-to-date 2015.
Is the total of your balances higher today than it was at the end of 2014? If so, your net worth is positive in 2015, meaning you’re saving money; spending less; paying off debts; or some combination of these three. On the other hand, if the total of your balances were higher at the end of 2014 than they are today, then your net worth is negative in 2015: you’re not saving; you’re spending more than you’re making; you’re acquiring more debt; or again, some combination of the three.
Regardless of whether your net worth is positive or negative, make increasing your net worth one of your financial goals for the rest of 2015.