YOUR MONEY: Conduct a mid-year money audit

Now that we’re halfway into the year this is a good time to do a personal finance review.
Published: Jul. 18, 2022 at 11:44 AM CDT
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BATON ROUGE, La. (WAFB) - Now that we’re halfway into the year this is a good time to do a personal finance review.

If you set money goals in January, take a look at your budget to see if you’ve met those goals.

It’s okay if you’ve strayed a bit.

Your budget has undoubtedly been impacted by inflation.

On the heels of another record-breaking inflation report, experts are still warning consumers of a recession.

So, how can you prepare and protect your money for that?

Right now, finance experts recommend beefing up your emergency reserve fund.

CBS News Business Analyst Jill Schlesinger said your goal should be to have enough money in a safe, liquid account that can cover six to twelve months’ worth of living expenses.

If you’re retired, consider keeping one-to-two years’ worth of expenses in reserve, to avoid being forced to sell assets at lower levels just to cover your bills.

Next, reduce credit card or any high interest debt as quickly as possible, because it’s likely that the federal reserve is going to keep increasing interest rates.

It’s predicted officials could hike interest rates again.

It could increase by three-quarters of a point later this month to cut down borrowing and spending by consumers and businesses.

Here’s something to consider if you’ve already checked those two items off your finance list.

“Presuming that you have ample savings and no high interest debt, now may be a great time to invest,” said Schlesinger. “After all, the us stock market is down by about 20 percent this year and bonds are down by about 10 percent. These assets may be the only things that are cheaper now than they were six months ago.”

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