Beyond Tax Season: How to Keep Your Finances in Check Year-Round

Keeping finances in check is critical for your overall confidence. In today's uncertain times, managing finances can make the difference between comfortably surviving a crisis and struggling to make ends meet. Therefore, it's crucial to have a plan to manage finances throughout the year. Here are some tips to help you through the process year-round

1. Create a detailed budget—The starting point for managing your finances is having a budget to help track your income and expenses. A budget must include monthly income, regular bills, and discretionary spending. It is vital to reassess and update your budget monthly as your income or expenses change.

2. Build an emergency fund— Life is unpredictable, and unexpected expenses can arise at any time. Therefore, it's crucial to set up an emergency fund. This fund should cover 3-6 months of living expenses to help manage unforeseen emergencies without dipping into your savings or relying on credit.

3. Pay down debt—High-interest debt can severely hamper financial stability. Make it a priority to pay off your debts as quickly as possible. The sooner you are debt-free, the sooner you can start saving and investing more of your income.

4. Diversify investments—Allocating your money across various investment sectors can help protect a portfolio from market volatility. Moreover, diversification may help increase returns over the long term. Consult a financial professional to understand a suitable strategy tailored to your needs, risk tolerance, and goals.

5. Automate savings and bill payments— Setting up automatic payments helps you avoid missing payments, late fees, and damage to your credit score. Similarly, automating your savings can help you work toward building wealth over time.

6. Review Insurance Policies—Review your insurance policies annually with an insurance professional to help ensure you're adequately covered. This includes life, health, home, and auto insurance. 

7. Monitor Your Credit Score—Credit scores are significant when lenders determine your loan eligibility and interest rates. Routinely check your credit report for errors that could negatively affect your score.

8. Plan for Retirement— Regardless of your age, it's never too early to start planning for retirement. Make regular contributions to a retirement fund and take advantage of matching employer contributions. The sooner you start saving, the more time your money can accumulate.

9. Work with professionals— Financial and insurance professionals provide personal guidance based on your circumstances. They can create a comprehensive plan to help you make more informed decisions as you work toward your goals.

10. Stay informed—Stay updated with economic news and trends to make informed financial decisions. Understanding how economic events impact your finances is essential to reacting proactively rather than reactively.

In conclusion, keeping your finances in check requires a combination of disciplined budgeting, strategic investing, debt management, and regular review of your financial situation. Remember, the objective isn't just to survive; it's to thrive financially by initiating an ongoing review and revision process throughout the year.

SWG4312451-0325b This information is provided as general information and is not intended to be specific financial guidance.   Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives. The source(s) used to prepare this material is/are believed to be true, accurate and reliable, but is/are not guaranteed.