As we approach the summer, it can be difficult to stay on track with your financial goals. It’s been several months since you made your goals for the year, so it might be time to get reacquainted with them.
The good news is that summer is the perfect time to assess where you’re at, and make a plan for the rest of the year.
Plan Out Your Summer Fun
Summer can be a fun, busy time of year, full of vacations, barbecues, sporting events and pool days. And while you should enjoy yourself, you should also be careful that you don’t end up overspending in the midst of all that fun.
Plan ahead for your summer activities. If you want to take a trip, check dates to make sure you’re getting a good deal, or travel on weekdays if you can.
You can also set a budget each week or month for fun extras, like ice cream outings or passes to the local waterpark.
If you give yourself a fund for those extra activities, you can feel confident that you’re enjoying yourself without getting behind.
Financial Goals: Track Your Spending
If you haven’t been great about tracking your spending this year, summer can be a prime time to establish a new habit.
While you’re preparing a budget for all those extra warm-weather activities, practice tracking everything you spend along the way. If you stick to it for the summer, you’ll have a better gauge of what you might need to change or cut back on before the fall, back-to-school and holiday seasons are here again.
Top Up Your Emergency Fund
An emergency fund always feels like an afterthought – until you need it. Assess where your emergency savings are at for the year, and make a plan to top that account up if you need to.
A general rule of thumb is to have three to six months’ worth of spending on hand, or a little more if you own a business or have a less stable income.
If remembering to funnel money to savings is difficult for you, try automating a certain amount from each paycheck. You might be surprised to find out how much you can save up by the end of the summer.
Financial Goals: Put More Towards Retirement
Speaking of important funds, have you reviewed your retirement savings lately? If you’ve fallen short so far this year, it might be a good time to allocate more toward retirement accounts if you can.
Here are some additional resources to help you maximize retirement savings:
4 Retirement Tips for Your 40s
Are Your 401(k) Savings Enough?
You Maxed Out Your 401(k) – What Should You Do Next?
Check Over Retirement Savings Plans and Health Insurance
Open enrollment doesn’t begin until the fall, but the summer is a great time to check over your benefits and make sure they’re working for you. Review your health insurance spending and retirement savings for the year, and make note of any major life changes this year.
Also, if you have a healthcare FSA or a dependent care FSA, make sure you’ve filed your claims so far for the year.
Having that information ready will make it a little easier to know what changes you need during open enrollment.
Find Out Where You’re Feeling Stuck with Your Financial Goals
Now that you’ve looked over your budget, savings and goals progress, you might notice that you’re struggling to hit certain goals or stay consistent. Now is the time to try something new, make changes, or enlist help to get back on track before the end of the year.
Here are more posts that might help you get a handle on your money goals:
How to Stay Motivated to Hit Big Financial Goals
Roundup: How to Set Achievable Financial Goals
About Your Richest Life
At Your Richest Life, physician-focused financial planner Katie Brewer, CFP®, wants to help you build a successful financial future. For more information on the services offered, contact Katie today.
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