Advantage Newsletter - July 2010

Now is a good time to take a close look at how you’ve been spending and saving and then determine the changes you can make to improve your financial situation in the second half of the year.

1. Try to figure out how much money you’ve saved this year so far. If you feel like you need to save more during the second half of this year, consider allocating a portion of your paycheck to go into a savings account through a direct deposit set-up. You may want to look into putting a certain amount into money market funds that typically pay higher returns than savings accounts.
2. Assess how you are using your credit cards. Review the balances and the fees and interest that you are charged. Consider factors such as the minimum payment you are required to make, how the company calculates the finance charge and circumstances when the credit provider can change agreement terms. If you carry balances on high-rate credit cards, look into obtaining a low-interest credit card and transferring your existing balances.
3. If you are not participating in your employer’s 401(k) plan, and are eligible to do so, consider enrolling now. If you're already participating, consider increasing your contribution. If a 401(k) isn't available to you, consider opening an individual retirement account (IRA). In general, contributions to an income earned on traditional IRAs are tax deferred until retirement. Roth IRA contributions are made after taxes, but earnings can be withdrawn tax-free upon retirement.
4. Evaluate your insurance policies beginning with your health insurance policy. If you’re not covered under a group plan, see if you can join any trade associations, which often offer group rate policies. Or, obtain quotes on individual policies by calling the major insurers in your state. Life insurance policies should also be reviewed and updated if changes have occurred to your dependents or beneficiaries.

Taking the time to review how you’ve handled your finances in the first half of the year will help you better manage your finances for the remainder of the year.