Seven Steps to a Mid-Year Financial Check-Up

It feels like you just packed away the holiday decorations yesterday, but believe it or not, 2019 is already half over. As we sail into the season of barbecues and beaches, take a few minutes to give yourself a mid-year financial checkup. A small investment of time can spur important changes that can affect your financial wellness for the rest of 2019 or even for years to come. 

Use the seven steps detailed below to guide you through your checkup. 

Step 1: Revisit Your Budget 
Remember sitting down in December and crunching all those numbers? There’s no need for such a detailed job again, but take some time to review your monthly budget. Are you sticking to the planned budget for every category? Are you overspending in some categories or under-spending in others? Do you need to adjust your allotted budget in some areas or maybe trim your discretionary spending across the board?

Review your spending over the last few months and make any necessary changes so your budget can continue working for you. Be sure to account for any significant life changes that may alter your financial needs, such as a marriage, the birth of a child, a divorce, or a job change. 

 You will avoid falling into a mindless spending trap and you will be taking proactive steps toward staying on top of your finances for the rest of 2019 by reviewing and adjusting your budget.

Step 2: Anticipate Large Expenses 
Now that you’ve updated your monthly budget, take a moment to list any large expenses you anticipate having in the next six months. This can include household appliances that may need replacing, expensive car repairs that will likely become necessary, or an anticipated medical expense that is not fully covered by insurance. 

Once you have this information in hand, determine which spending category you will take the money from to cover these expenses. Do you have a rainy-day fund that can pay for one or several of these costs? Can you use the money in your emergency fund? Make the decision about sourcing this money now so you don’t make the wrong choices when you’re stressed and pressed for time in the future. 

If you do not have enough money set aside for these expenses, build a savings plan into your monthly budget now so you have the funds available when you need them. 

Step 3: Review Your Tax Withholdings 
Review your tax withholdings to see if they need any adjusting. If taxes and numbers are not your thing, ask your accountant for assistance with this step. Your goal here is to pay the perfect amount so you’re not hit with a huge tax bill at the end of the year but also not lending the government your money interest-free. 

Step 4: Check Your Credit Score 
Your credit score is like your money grade, indicating the degree of your financial wellness and responsibility. Visit AnnualCreditReport.com for your free credit report from any of the three major credit bureaus: Experian, TransUnion and Equifax. 

If your score has gone up in the last six months, you’re doing great! Keep up the good work. 

On the flip side, if your score has dropped, review your report in detail. Are there any errors you’ll need to contest with the Federal Trade Commission? Is there a credit card bill or another line of credit you’ve been neglecting that is dragging your score down? Are you having trouble remembering to pay your monthly bills in a timely manner? Take the necessary steps to fix your score today by setting up an automatic payment on some of your bills, by lowering your credit utilization rate by paying with plastic less often, or by sitting down with one of our free financial counselors.

Step 5: Review Your Investments
Now is the time to review and adjust all of your investments. This includes your contributions to your retirement funds or savings certificates at DoverPhila Federal Credit Union. Make sure you are maximizing your contributions when possible and that your other investments are performing according to plan, adjusting as necessary.   

Step 6: Tackle Your Debt 
List every single outstanding debt you carry, including credit card debt and loans. Designate one debt to tackle first, either choosing the one that carries the highest interest rate or the one with the lowest balance. Next, work on a plan to get rid of your chosen debt, being careful not to neglect the others. See if you can trim your budget or boost your income in any way to increase your payments on this debt. Once you’ve paid it off, move to the next one on your list so you’re on your way to a debt-free life. 

Step 7: Review Your Financial Resolutions and Long-term Goals 
Which financial resolutions did you jot down at the end of 2018? What are your dreams for the future? Did you want to start socking away another $200 a month? Is your goal to retire comfortably at 55?

Take some time to review these goals and to determine whether you are indeed taking the steps necessary for making them happen. If you’ve been neglecting them for the first half of 2019, create a plan for working toward them for the rest of the year. Remember: With determination and proper planning, nearly any financial goal is possible! 

Now that you’ve given yourself a thorough financial checkup, you can kick back and enjoy the sweetness and the sunshine of the season, guilt-free. Click here for more tips and tools to help maneuver your finances in the right direction.

How to Choose the Correct Credit Card for You

Choosing the best credit card for your lifestyle can have a considerable impact on your overall financial health.

In an Ohio Credit Union League 2018 consumer survey, 73 percent of respondents stated they use at least one or two credit cards every month. Of those who regularly utilized credit cards, 39 percent carried up to $1,000 in credit card debt. Another 30 percent owed between $1,000 and $5,000. According to the Ohio Credit Union League’s Quarterly Performance Summary (2nd Quarter, 2018), the average credit card balance held at Ohio credit unions was $2,142.

Ohioans are right in line with national trends as 71 percent of Americans have at least one credit card, according to The Motley Fool. About 18 percent of Americans have three or four credit cards in their wallet, and those cards tend to carry debt.

With the possibility that their credit cards could carry significant debt, it’s not surprising consumers want to shop around before choosing a card.

The majority of respondents in the Ohio Credit Union League consumer survey, about 44 percent, said they look for the best interest rates and lowest fees in their credit cards. According to Experian, most Americans shop for credit cards with a similar mindset; 54 percent seek out a card with no annual fee, while 40 percent look for a low-interest rate. It’s not all business, though. Another 45 percent of Americans and 32 percent of Ohioans said perks, including points for travel, discounts, and other rewards, could influence them to apply for a card.

Americans might have clear motivations for seeking credit cards, but that doesn’t mean they’re easily finding the cards that suit their needs. Although consumers know they should shop for the best deals, according to the Experian survey, 69 percent of Americans said they feel researching the correct card is too time-consuming. Another 61 percent said they become overwhelmed by the number of options available, and 57 percent said it’s too difficult to tell which card would work best for them.

Still, the majority of respondents in the Experian survey, 64 percent, said they believe their perfect credit card is out there, they just haven’t found it, yet.

Don’t let stress over choosing the best credit card deter you from using plastic to pay. Here are tips for finding the perfect credit card:

  • Check your credit. Higher credit scores are more likely to be approved for credit cards with better perks, while those with lower scores may need to shop around more. It’s best to begin the research process knowing your score, rather than being declined for the credit card you want after searching. Federal law entitles you to a free copy of your credit report from each of the three major credit bureaus every year: Equifax, Experian and TransUnion. AnnualCreditReport.com is a federal- authorized site where you can find your score.

  • Figure out what type of credit card you need. Consumers can choose between cards that help improve limited or damaged credit, cards that save money on interest, and cards that earn rewards. Additionally, some consumers choose cards to transfer a balance from an existing credit card. Be sure you’re choosing the card most beneficial to your current situation. Check out the credit cards offered at DoverPhila Federal Credit Union.

  • Decide how likely you are to carry a balance. If you know your credit card will carry debt you won’t be able to pay off right away, you should search for cards with low annual percentage rates. Otherwise, you could end up with card payments that don’t fit into your budget and that drag out longer than expected. Make sure you know how much you can realistically afford to pay in finance charges each month and shop around accordingly.

  • Read all the fine print. Thoroughly research and understand how your potential credit card will fit into your budget. You may be attracted to a card because of its 0 percent APR introductory offer, but make sure you understand how long that offer lasts and what you’ll be paying in finance charges once that rate changes. Some cards also include annual fees, late fees, and foreign transaction fees you should be aware of before you apply. Be sure you understand everything about your new card so you can use it as wisely as possible.

  • Look to a credit union. DoverPhila Federal Credit Union offers competitive rates on credit cards that are tailored to your spending habits, along with reward programs.

Learn more about how DoverPhila Federal Credit Union can help you make a savvy credit card choice. Visit any DoverPhila location or call 330-364-8874 to speak with a credit union member service representative.

DoverPhila Partners with Area Organizations to Promote Financial Literacy

OhioMeansJobs Tuscarawas County, United Way of Tuscarawas County, Inc., and DoverPhila Federal Credit Union are partnering to offer a financial literacy workshop for area residents. “Master Your Money – Simple Tips to Improve Cash Flow” will be held Tuesday, December 5th, 10:00AM to 12:00PM at OhioMeansJobs Tuscarawas County at 1260 Monroe Street in New Philadelphia. 

The workshop will offer easy and straightforward methods to reaching financial goals. Topics include tackling expenses, increasing savings and improving credit.

“Many of the customers that we serve struggle with numerous financial difficulties due to lack of employment or other employment related issues. This collaboration with United Way of Tuscarawas County, Inc. and DoverPhila Federal Credit Union is a positive step in helping area residents become financially stable and achieve financial independence,” said JoAnn Breedlove, COO of OhioMeansJobs Centers in Stark and Tuscarawas Counties. 

“This collaboration is a great example of how United Way brings together organizations with common missions and goals,” said Robin Waltz, President of United Way of Tuscarawas County, Inc.

For further details contact OhioMeansJobs Tuscarawas County at 330-364-9777. Pre-registration is suggested but not required.