Reviewing how you are a doing with savings, investing, spending and debt around the middles of the year can be worthwhile. It will give you a chance to spot any issues, and allow you to plan your budgets for the rest of the year.
During this time, it may also be a good time to check out your credit file. You can request your credit file for free from VEDA at https://forms.mycreditfile.com.au/Apply/Personal/Credit/Step1.aspx?form=FreeCreditFile
The idea is to check your file for any irregularities, and that all credit enquiries are accurate. This may highlight identity theft issues. If there are some queries on your credit file that should not be there, contact your bank or financial institution immediately.
This is also a good time to review your budgets (or to set one up if you haven’t got one already). Focus on any financial goals that you may have, and whether you need to make any adjustments. For instance, you may want to save more money for that holiday, or pay off more debt. Or what will you do with that tax refund in July? You can get more information about setting up budgets at ASIC’s MoneySmart website. (https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/budget-planner?gclid=CLDf2ZfRhsYCFdcjvQodpqIArw)
We also recommend to everyone review their financial buffer or emergency fund. Having a buffer or an emergency fund can help you avoid shocks to your financial resources such as your credit cards or saving accounts. If possible, the recommendation is to have a balance of 4-6 months of everyday expenses as a buffer. You can calculate what you need for your buffer or emergency fund at http://www.practicalmoneyskills.com/calculators/emergency
And as tax time is just around the corner, make sure all your records are up to date. Check and review your savings, spending and investment records to make sure the numbers add up and paperwork is in order.
At this time of the year, reviewing your finances will give you an opportunity to spot errors, issues, and allow you to adjust your budgets and achieve your financial goals.
Contact us if you want to discuss your financial needs further.