Analysing your finances mid-year? Here’s what you should review

With more than half of 2022 over, it is an excellent time to review your finances and plan for the remainder of the year. So, where do you begin? Include the three-point checklist below and make your mid-year financial review a success! 

Analyse your earnings, costs, and financial goals: We’re not asking you to keep track of every penny you’ve spent in the year’s first half. However, spending a little time reviewing your financial expenditures with the help of a budget app would go a long way in understanding your finances and taking corrective measures if necessary. 

With inflation on the rise, the budget you planned at the beginning of the year would not be in sync with your financial goals today. Modifications will be needed. Hence, it is essential to reset and refigure where you stand today. 

If you have overshot the budget, plan a scaleback. For instance, cancel that OTT subscription you barely use or eat at home! When you cut the excess spending, you have money to buy things that are a must. 

If you’ve set financial goals for the year, review them too. Analyse if you’re on track to pay off your debts. Are you saving enough for the emergency fund you set up for a rainy day? If the answer to all these questions is yes, you are on the right path! 

Handle your debt with care: With the rising interest rates, debt is becoming more expensive than ever. One way to manage your debt efficiently is to pay it faster. Always focus on paying off debt with the highest interest rate first. If you can avail of the refinancing facility, switch from variable interest rates to fixed interest rates. Paying off debt with a fixed interest rate would help you save money over time. 

Review your taxes and benefits: Always use a tax calculator to analyse if you’re paying more money in taxes than you should. The course of action will help you determine the tax you need to pay and recover the extra cash that could help you achieve your financial goals. 

Additionally, review benefits such as health insurance, life insurance, and other perks. Reviewing your choices around mid-year will help avoid the hassles you might face at the end of the year. You can select cost-effective options that suit your needs

For any clarifications/feedback on the topic, please contact the writer at sourabh.dubey@clear.in

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