Perform a Mid-Year Financial Checkup

The lazy days of summer offer a perfect time to slow down and reflect on your 2020 financial goals. Take a break from the pool and review your progress toward reducing debt and growing your savings fund. Kickoff your review with these three questions:

Question #1: Did I experience a change in income?

This year saw record unemployment due to the global pandemic. If you experienced a layoff or reduction in pay, you might need to revise your goals based on your new financial reality. If, however, your income remained stable, consider how the current recession might affect your lifestyle over the next six months.

In either case, examine how your current income affects your debt reduction plan.

Question #2: Should I boost my emergency savings?

By mid-year, you should have a good idea of whether your money habits need to change. Are you spending more than you're saving? If you haven’t opened a designated emergency savings account, now would be a good time to start.

Financial experts recommend building a fund equal to at least six months of living expenses. Use these funds to pay for rent, groceries, and other necessities if you experience a loss in income.

Question #3: Should I increase my retirement contributions?

A volatile stock market is likely affecting your retirement portfolio. While you might feel like cashing out now to stop further losses, doing so could cost you more over the long-term.

If you already have a fully-funded emergency savings account, you might consider increasing your retirement contributions. A qualified financial professional can review your portfolio and offer guidance based on your specific situation. Contact a Wescom Financial Services advisor at 1-888-879-0558 Ext. 5104 for assistance or schedule your appointment online.