It's Time For Your 7-Step Mid-Year Money Checkup

We are saw the It's Time For Your 7-Step Mid-Year Money Checkup

You change the oil in your car when the red light reminder comes on and get diligent about flossing when the dentist sends a postcard about your six-month checkup. So consider this your cue to get ready for the essential mid-year money review.

With six months of earning, saving, and spending under your belt, you've got plenty of data to project how 2010 is going to play out. So let's lift the hood on your finances and give everything a good once-over.

Your 7-step tune-up agenda
The goal of this six-month checkup is to identify potential trouble spots before they become big money gushers. Use this checklist to methodically review each area of your financial empire. Beneath each step note any lingering "to-dos" (e.g., "set aside $50 each week to cover future car repairs,” “open a Roth IRA"). If you cannot complete those items during your financial physical, set a deadline for completion. For added incentive, come up with a reward to enjoy at completion.

Step 1 - Update your personal balance sheet (what you own and what you owe): This will take about 15 to 20 minutes. Simply record the balances of the following items: checking/savings accounts; brokerage accounts; retirement accounts; home equity; short-term debt (credit cards, student/auto loans); and long-term debt (mortgage). Note what direction your money's going (up, down, haywire). If this is your first review, you now have a baseline for your next checkup.


Step 2 - Give your W-4 the once-over: If you earn a steady paycheck (meaning one not dependent on bonuses or fluctuating earnings month-to-month), this is your chance to stop overpaying Uncle Sam -- any more than you already are, that is. If you got a tax refund last year of more than $1,000 and have made no adjustments to your W-4, and if you don't anticipate any major life changes, adjust the number of withholding allowances.






Coppied by 2010 Yahoo! All rights reserved.