Time for that mid-year financial checkup
Michael G. Shinn/NNPA Columnist
Issue date: 7/12/09 Section: Business
This year is proving to be one of the toughest economic environments that we have faced in a long time. The U.S. economy, as measured by Gross Domestic Product was down 5.7 percent in the first quarter and the second quarter was likely just as bad. Unemployment was 9.7 percent in May and will probably move into double digits for the remainder of the year. The good news is that the banking and financial system appears to have stabilized and the federal government has embarked on a long-term economic stimulus plan that is projected to lead the economy into positive growth late this year or in early 2010.
President Obama and Federal Reserve Chairman Ben Bernanke have professed to see "glimmers of light" in the economy and are optimistic about the future. Closer to home and most importantly, how is the economy affecting your family and your financial plan?
What has changed in your family's life? Have any marriages, divorces, births, health changes, layoffs, retirements or graduations taken place? How have family changes affected your financial plan? Today is a great time to measure your progress toward the achievement of your financial goals and to make mid-year corrections.
Cash Management
If you want to pursue your financial goals, it is imperative that you manage the major source of your potential wealth - your cash. Are their ways that you can take advantage of today's relatively low interest rates by possibly refinancing your mortgage or switching to a lower rate credit card?
Have you maximized your income potential? Is overtime or a second job available for a few months to allow you to remove the albatross of bad debt from your life? Consider alternative ways to reduce expenses like buying clothes during seasonal sale periods, cooking meals at home, or using public transportation.
If you have not set up a monthly cash-flow statement, use your last three months' income and expenses to establish a baseline and then track it monthly.
President Obama and Federal Reserve Chairman Ben Bernanke have professed to see "glimmers of light" in the economy and are optimistic about the future. Closer to home and most importantly, how is the economy affecting your family and your financial plan?
What has changed in your family's life? Have any marriages, divorces, births, health changes, layoffs, retirements or graduations taken place? How have family changes affected your financial plan? Today is a great time to measure your progress toward the achievement of your financial goals and to make mid-year corrections.
Cash Management
If you want to pursue your financial goals, it is imperative that you manage the major source of your potential wealth - your cash. Are their ways that you can take advantage of today's relatively low interest rates by possibly refinancing your mortgage or switching to a lower rate credit card?
Have you maximized your income potential? Is overtime or a second job available for a few months to allow you to remove the albatross of bad debt from your life? Consider alternative ways to reduce expenses like buying clothes during seasonal sale periods, cooking meals at home, or using public transportation.
If you have not set up a monthly cash-flow statement, use your last three months' income and expenses to establish a baseline and then track it monthly.
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