Midyear Financial Check-In
Cheers! 🥂 We’re halfway through the year, so it’s a good time to have a little date with your finances and check in to see how things are going! Plan a time to have a coffee, dinner, lunch date with yourself and your finances and make it a party. Ready? Let's get started.
Make sure all bookkeeping is up to date
I recommend doing your bookkeeping on a monthly basis, however now's a good time to get in your books and make sure things are up to date. Do you have all your receipts saved? Are all checking and credit card transactions categorized and reconciled? Do you have your profit & loss report and balance sheet?
If you already have a bookkeeper, these are things they'll send or have done for you so you don't have to worry about it. 😜 If you do your own bookkeeping, definitely look into these and make sure things are up to date. Why? Because it'll make your life a million times easier come the end of the year, when you're getting ready to file your taxes.
Revisit your goals and budget
What goals did you set at the beginning of the year? A helpful practice is to take those goals and evaluate. Here are some questions you can ask yourself to see where you're at, and what you might want to change.
Where are the leaks?
What's worked well for you in achieving your goals?
Have you hit your goals?
What needs to change in your goals (or business: think systems, processes, etc) for the last half of the year?
How about your budget, what needs to change for the last half of the year?
Checking in with your goals and budget will help you redirect if needed and make sure you're on track to be where you want to be by the end of the year.
Review software and subscriptions
YIKES these can really get to you sometimes. Remember that one time last year when you thought you really needed that subscription/service/membership? Are you still using that service? If not, it's time for that subscription to go. This can actually save you quite a bit of money by regularly reviewing your subscriptions.
Prioritize paying off debt
Oh debt, gotta love it. If hearing the word "debt" scares you or makes you cringe, no worries. Let's keep this manageable (because you know we need to talk about it). I personally like the debt snowball method. If you haven't heard of it, it's where you tackle your smallest debt first, then pay them off one at a time. Obviously you'll want to keep in mind what the interest rates are.
Once you've taken inventory on your debts and decided which one to start with, it's time to make a plan. Maybe you set aside x amount of dollars each month to pay towards that debt. Whatever it is, make a plan and stick with it. You've got this!
Reevaluate your retirement investments
First of all, if you're not already saving or planning for retirement, this is your friendly reminder to start 😜 The sooner, the better!
In all seriousness though, how are your investments looking? Do you want or need to change things around? Should you contribute more or less? I always recommend finding a financial advisor to help you with your investment portfolio. There are so many options for investing, and they'll be able to help you find the right fit for you.
Adjust your finances for any major life changes
Here's where you take a look at upcoming life changes. Are you planning on buying a house anytime soon? Are you moving out of state (or wherever)? Maybe you're expecting and have a baby coming soon. Whatever the case may be, you'll want to make sure you plan accordingly. If you want to buy a house, you might want to set aside savings specifically for a down payment (and decide how much will go into that savings each month). If you're having a baby, then you'll probably have some hospital bills, need new equipment (maybe a carseat or stroller), etc.
There you have it! Take your notebook, planner, laptop, etc to your local coffee shop and have a date with your finances. Your business (and your stress levels) will thank you!
