Summer is the perfect time for vacations at the beach and Saturdays at the pool. It’s also a great time for assessing your financial health. Things are generally a bit slower in summer so use your time wisely and take a minute to review these four financial items.
Before you fork out significant dough for that condo on the beach, make sure you’re not dipping into your emergency reserves. It’s impossible to know what unexpected things may pop up in life, but having a financial cushion is crucial. A general rule of thumb is to maintain about four months living expenses in your emergency fund.
How much do you actually know about your credit? Do you know your credit score? Summer is the perfect time before the holiday spending season to research where you stand financially. Equifax, Experian, and TransUnion all offer free credit reports, so do your homework before opening up another credit card or applying for a loan.
You may not pay much attention throughout the year to contributions to your retirement savings, but summer is a great time for a review. Are you satisfied with how much is being moved from your paychecks to retirement? Is your company matching your contribution? Don’t wait until it’s too late to be in the know. If you are able, contribute as much as you can to your future and ask yourself these three things before that time comes.
It can be hard during the busiest times of the year to truly evaluate our spending habits. We move from one workday to the next and do the best we can to budget. During the summer, sit down and give your finances a good look. Are there areas in your life where you can really cut back? If you can make adjustments during the summer months for the rest of the year, you can potentially be putting extra money back in your pocket.