Key Takeaways

• Keeping on track financially means doing a money checkup more than once a year.
• Start with your budget—if you have one, check it. If not, build one.
• Review your emergency funds and debt.
• Check your credit report at least once a year.
• Include checkups on retirement or college savings, as well as student loans.

Have you been keeping up with your financial resolutions this year? Now that the year is half over, it’s a great time to review your progress. Setting financial goals, managing debt, budgeting, and saving for the future require consistent attention. Adding a mid-year money checkup to your routine in June or July is a great opportunity to assess your financial health and make adjustments for success.

Follow these five steps to make sure you’re on track financially. But don’t worry—if you haven’t created a budget, set financial goals, or made a plan to reduce your debt, it’s not too late to start.

1. Review your budget

Start with your budget. Things can change over time, so mid-year is a good time to see if your budget is still working for you. Look for:

• Spending too much—If you’re overspending in a budget category, that could mean that you won’t be able to meet your savings goals that month.
• Hidden expenditures—Look for items you’re paying for but not using, like streaming services you don’t use anymore.
• Changes in income—When your income goes up or down, adjust your budget accordingly.

No budget? No worries. You can build a budget now. Start by listing your expenses and your take-home pay. Allocate amounts for monthly expenses and savings that fit with your income. Check out the Pro tip below—Lake City Bank Digital can generate a budget based on your spending!

*Pro tip: Monitoring what you spend in real time and comparing it to your budget will help keep you on track. Most banks have digital banking apps where you can see all your transactions as they happen. To make budgeting easier, the Financial Tools feature in Lake City Bank Digital automatically generates a budget based on your spending and includes insightful analysis to help you make informed decisions about your finances.

2. Build an emergency fund

The only thing predictable about emergencies is that they are unpredictable. Setting aside money for emergencies isn’t just prudent; it saves you money in the long run. When your water heater needs replacing, your car needs new tires, or your cat needs surgery, you can cover the expense from your emergency account without using a credit card. Your emergency fund can also help with living expenses in the event of an unexpected job loss.

How much should you set aside for emergencies? A good rule of thumb is to have three to six months of living expenses saved in your emergency fund. That amount might seem daunting, but setting aside money each month is a good start to building toward your goal.

You can simplify saving for emergencies by automating. Savings tools like Goals* in Lake City Bank Digital automate savings toward any goal you can imagine (like an emergency fund) and show your progress whenever you log in.

3. Pay down debt

Calculating debt isn’t anyone’s favorite activity, but it’s vital to managing your money. At your mid-year checkup, review what you owe and answer these questions:

• Do I have more debt now than at the beginning of the year? Do I have less?
• What’s my plan for reducing debt?
• I have a plan for reducing debt. Is it working or should I revise it?

Here are two approaches you can take to pay off debt:

• Pay off the card with the highest interest rate first, then move on to the next-highest rate card, and so on.
• Pay the card with the smallest balance first, then move on to the next, and so on.

Whatever your plan of attack, make minimum payments on your other cards to avoid late charges.

*Pro tip: Check your credit report at least once a year for accuracy. You can access a free copy of your report every twelve months at annualcreditreport.com. Your credit score (the three-digit number that rates your creditworthiness) is determined by the contents of this report. Reviewing your credit report can help provide a more complete picture of your financial situation as well as help you develop strategies to maintain or improve your score.

4. Don’t forget retirement

Check your retirement savings at mid-year too. If your budget allows and your employer offers a matching contribution, be sure to save at least to the level of your company match in your 401(k) plan. Review what you’re putting toward retirement as your salary increases and adjust your retirement savings accordingly. If you’re starting at age 55 or older, you can make additional catch-up contributions to your 401(k).

5. Saving for college and paying school loans

If you have children, be sure your checkup includes reviewing your college savings plan (don’t forget to review college cost projections). If you want to start saving for college, it’s a good time to review college savings options, such as an Indiana 529 plan.

If you have student loans, look at your progress. You can amp up payments to pay them off faster as your budget allows.

Now that’s a plan!

These steps can guide you to creating a financial routine that suits you and your family. Already have a routine in place? Well done! If you don’t have a plan yet, don’t stress. Just follow these steps—you’ll soon feel more comfortable about your financial situation and more confident about achieving your goals.

*Goals, as referred to herein, constitute the Goals Account described in Section E Investment Accounts of the Personal Account Terms and Conditions.