Summer is in full swing and while July is a prime time to
cash in on any plans you may have—at home or beyond—the reality is that
financial concerns (and recent credit interest rate spikes) remain alarming for
most of us.
Here are five steps to take to boost your financial health
and reduce your worries this summer.
1. Assess
your Budget. Do you have a budget? Midway through the year is a great time
to build one. A common strategy is to follow the 50/30/20 rule, which splits
your income across three major categories: 50% goes to necessities, 30% to
wants and 20% to savings and debt repayment. But those percentages may differ
for you, depending on your income and cost of living.
2. Check
your Credit Report. Obtain a free credit report from the major credit
bureaus (Equifax, TransUnion, Experian) through www.annualcreditreport.com and
carefully examine it for any errors or discrepancies. Ensure that all your
accounts are accurately reported and that there are no signs of fraudulent
activity. Addressing any issues promptly will benefit your credit score, which
in turn can positively impact your future borrowing capabilities.
3. Evaluate
your Investment Portfolio. If you currently have an investment portfolio,
mid-year is an opportune time to assess its performance over the past few
months and rebalance it if needed. Ask yourself: does my current strategy align
with my long-term financial goals and risk tolerance? If you're new to
investing or feeling uncertain about what money moves to make, consider
connecting with a financial advisor who can offer guidance.
4. Develop
a Savings Strategy. Consider a CD or Money Market account and start setting
aside funds or exploring financing options in advance to minimize future stress.
CDs are a great way to earn higher interest than traditional savings accounts.Money
Market accounts earn interest, just like savings accounts, but can include
options normally only available with checking accounts, such as debit cards and
checks.
5. Make
a Plan to Pay Down Debt. This is a good time to evaluate your outstanding
debts, such as credit card balances, loans, or mortgages. Consider the
balances, current interest rates, and payment terms for each. You might even
consider a low-interest personal loan to consolidate that debt.
Since 1934, Telhio Credit Union has been helping people
maintain good financial health. They are a not-for-profit, full-service
financial institution cooperative, meaning its members are owners. For information about personal and business
banking, visit www.telhio.org.
