Midway through the year is a good time to do a financial checkup with yourself. Assess not just your current finances, but also your financial planning, taxes, estate plans, credit reports, and more.
Too many people wait until April to start thinking about their taxes. Reviewing your paycheck withholding, estimated tax payments, capital gains and losses, and other issues that can affect you when you file your taxes. Looking at these now and planning ahead can make tax time easier.
Check Your Credit, Rates, Fees
Having bad credit can affect almost every area of your life, from the interest rates you get on a credit card to being approved for a home loan and even how much you have to pay for a deposit to your electricity provider. Some employers will even review your credit before hiring you.
Anyone can take advantage of getting a free credit report every year from all 3 credit bureaus – Experian Equifax and TransUnion. Check for inaccurate information and fraudulent information, and if you find either report it as soon as possible. All 3 bureaus have a way to report wrong information to have it removed so that it doesn’t negatively affect your credit.
Evaluate Retirement Planning
When you’re young and just getting started in the workforce, retirement is so far off that it’s hard to think about planning for it. The midpoint of the year is a good time to evaluate how much you’re investing for your future and where you are investing it.
Update Estate Plan
No matter what age you are, it’s important to consider what will happen if you die or become incapacitated. Accidents and unexpected illnesses happen. While no one likes to think about it, it’s still important to be prepared.
Everyone should have a will, no matter what size their estate. Whether your estate consists of a car, your dog, and some personal possessions, or you have a thriving business, millions of dollars in investments, and several real estate properties, you need to express your wishes for what should happen to your property and pets, and who should have guardianship of minor children.
An estate planning lawyer can help you draft a legally sound will to layout these wishes, as well as medical directives and power of attorney to designate an agent to act on your behalf if you are unable to make decisions for yourself.