Thinking about our finances is often akin to going to the dentist (no disrespect to dentists).  It’s really important, but we sometimes push it to the bottom of the to-do list.

But for the sake of your family -- and your sanity -- this is a really good time to take a step back and review your own financial situation.  

In the interest of not making this completely overwhelming, I’m going to give you five things to think about right now.  

Just five.  

And these five things are not meant to hurt your head.  They’re designed to help you and your family prepare for what could be an interesting back half of the year.  

1. The Dreaded B Word

Many of us would rather pull out our own toenails then figure out the family budget.  Because while we generally have an idea of the money that comes in our household, it’s the money that goes out that becomes more complicated to figure out.

So gather your bank statements, make an excel spreadsheet or download a budget app.  Pick something and then commit to tracking your expenses for a full month.  Record all the money that at goes (flies!) out of your household.

All of it.  Not only does that include the non-inflation adjusted food store bill, but also the lattes, the manicures and those after-dinner ice cream runs.

Track everything for a month.  That’s an ample amount of time to get a sense of what you spend regularly.

And then don’t throw up, but analyze the final number.  Does your spending align with your goals? If it does, good for you.  If it doesn’t, don’t beat yourself up.  Just figure out how you can make some small changes to get things more in line.

2. Review Your Debt

Check the interest rates on your mortgage, auto loans, student loans.  

Check your credit card debt, in particular. Recent data from the federal reserve shows the median average credit card interest at just below 25%.  

Oof.

What’s worse is the average credit card debt around $6,500…but for those of us between the ages of 43 and 59, it’s over $9000, according to the Experian’s recent data.

Now collectively we owe $1.14 trillion. 

Are you getting a bonus soon that you can apply to your debt? Do you have a little side hustle that you can use to pay that off?  Try really hard to focus on paying off those cards.

And while you’re at it, check your credit score.  Are there things you can do to clean it up? When interest rates are down, you want the score in good shape so you potentially can refinance a mortgage or another outstanding loan. 

3. Fill that Emergency Fund

If COVID taught us anything, it’s that we don't know tomorrow so that emergency fund has never been more important.  Ideally, it should cover three to six months of living expenses. If you haven't built one yet, start thinking about it. 

Now this earmarked money doesn't have to be stashed in a shoe box under your bed.  In fact, it shouldn’t be.  It just needs to be readily accessible.  So it could be in a high-yield savings account or  an investment that has next-day availability.  You just need to be able to access it quickly, in the event of an emergency.

So if the water heater breaks or a rock hits your windshield, you have some extra cash to pay for that stuff.  Even worse, if you or a loved one loses a job for a bit, you have enough set aside to help cover those costs without having to reach for those credit cards. 

4. Check Retirement Savings

Revisit your retirement savings accounts.  Often times we set these things up when we start a new job and then forget about them.

Take a few minutes to pull up those accounts. What are you contributing and what are you invested in?  

The 2024 401(K) limit is $23,000 this year ($30,500 for those 50+) so if it is possible, try to contribute the max.

Annual contributions to a IRA and Roth IRA are $7,000 per individual ($8,000 if you’re 50 and older). 

If you can’t hit the annual max, don’t stress.  Just make sure you're contributing enough to meet your company’s match if applicable. That match is basically “free money” so don’t leave it on the table.  

5. Finally, Review Your Financial Goals

Have you thought about your financial goals recently?  Well then, it’s time.

• Who are the people you care about?

• What are your biggest concerns?

• What are long-term dreams and goals?

I realize this could be very esoteric, but start thinking about it all.  It actually could be fun. And then ideally, you create a financial plan to meet those goals.

Helping clients with financial plans is one of my favorite things.  Seeing your personal financial story in one place can help you make smart decisions.  And knowing that you are working towards your family goals really can be empowering.

Over the next few months, there may be a lot of noise coming from Washington D.C., and maybe even the financial markets.  

But if you do these five things, and get your financial life in order, you may feel so much more in control and confident to manage the unexpected gyrations.

Check out my 5 Things with Tracy Byrnes podcast where I covered this and other topics.

And if there are any other financial issues that you want to know more about, please let me know at tracy.byrnes@ubs.com.

Tracy Byrnes is a CDFA® and financial advisor with UBS Financial Services. She focuses on assisting women through divorce, transition, and entrepreneurship. Her mission is to empower women financially so they can pursue their goals and confidently plan for the future. Tracy aims to be a stabilizing force for her clients, providing well-informed advice to help them plan for their families and businesses. Throughout her career, she has gained valuable insight and experience from the diverse range of people she has met, allowing her to translate complex concepts into straightforward advice. Tracy holds an M.B.A. in Accounting from Rutgers University and a B.A. in Economics from Lehigh University. She is also a financial expert who has been featured in multiple national networks and media outlets.

Tracy Byrnes is a Financial Advisor with UBS Financial Services Inc. a subsidiary of UBS Group AG. Member FINRA/SIPC in 600 Washington Blvd, 9th floor, Stamford CT, 06901.. The information contained in this article is not a solicitation to purchase or sell investments. Any information presented is general in nature and not intended to provide individually tailored investment advice. The strategies and/or investments referenced may not be suitable for all investors as the appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives.  Investing involves risks and there is always the potential of losing money when you invest. The views expressed herein are those of the author and may not necessarily reflect the views of UBS Financial Services Inc. Neither UBS Financial Services Inc. nor its employees (including its Financial Advisors) provide tax or legal advice. You should consult with your legal counsel and/or your accountant or tax professional regarding the legal or tax implications of a particular suggestion, strategy or investment, including any estate planning strategies, before you invest or implement.

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