The Mid-Year Financial Check-In

​When you started your financial planning for 2020, odds are you did not account for a pandemic that would shut down the economy and drive America to record unemployment numbers.

When you started your financial planning for 2020, odds are you did not account for a pandemic that would shut down the economy and drive America to record unemployment numbers.

Needless to say, the pandemic has most likely affected your finances in some way. Whether it’s the turbulent stock market affecting your retirement investments or maybe you’ve lost your job you’ve had for years because your industry went under, you may be finding yourself in a situation that you didn’t plan for.

Now that we are midway through the year, it’s time to change your financial plan accordingly.

What does your emergency fund look like?

The financial upheaval that COVID-19 caused shows the importance of having an emergency fund that will take care of your living expenses for at least six to eight months. The coronavirus crisis has taught us that there can and will be unexpected expenses that we can’t plan for. If you had to dip into your emergency fund in the first half of the year, then now is the time to start replenishing it.

What’s your current debt situation?

If you are in debt due to complications from the pandemic or otherwise, your focus for the last half of the year should be to pay off your consumer debt. Along with a healthy emergency fund, becoming debt-free is one of the most important paths to financial health. Decide what you can cut from your budget and use the savings to get ahead of schedule.

Take a long look at your finances and change your budget accordingly

Americans were affected in different ways throughout the spread of COVID-19, but it’s true that most everyone was affected financially. With the CARES act sending out stimulus checks, tax day getting pushed back, and a record number of citizens staying home, our checkbooks took a hit.

Because of this, it’s important to go over your current budget, how much money you are taking in, and how much is going out. Even if you didn’t get let go from your job, staying home may have opened up new expenses you didn’t think about before—like starting a new hobby, purchasing home gym equipment, or finally starting those renovations you had been talking about for years.

A financial planner will be the best way to walk through your mid-year financial check-in. They can help adjust your budget and determine your best course of action moving forward.