Jason Brown, a renowned stock market expert and the author of the acclaimed book “Five-Year Millionaire,” recently shared valuable advice with the PIX11 Morning News team during the PIX Financial Fix segment. He emphasized smart money moves that individuals can implement this summer to enhance their financial well-being.
July marks the midpoint of the year, making it an ideal time for a financial check-in. According to Brown, this season offers the perfect opportunity for individuals to review their financial status and ensure they are on track to meet their financial goals by year-end. Conducting this mid-year assessment allows for any necessary adjustments, ensuring that individuals start the second half of the year strong.
Essential Steps to Improve Your Finances
To assist individuals in getting their finances organized this summer, Brown shared five essential tips. The first tip emphasizes the importance of organization. Brown encourages individuals to schedule a financial meeting with themselves or their partners to gain clarity about their current financial situation. Financial experts at First United also stress the necessity of a midyear financial check-in to evaluate financial health.
A summer assessment enables individuals to ascertain if there is sufficient time to adjust their financial plans, particularly if they have experienced major life changes such as a job promotion, graduation, health alterations, or marital status changes since January.
Understanding Financial Categories
The second tip provided by Brown is to categorize your expenses into three distinct groups: needs, nice-to-haves, and wants. Needs represent essential items like food, housing, and basic living requirements. Nice-to-haves include items that enhance comfort, such as a reliable vehicle for commuting. Finally, wants are those non-essential luxuries, including vacations and new clothing.
Recognizing the difference between needs and wants is critical for informed spending. The Consumer Financial Protection Bureau emphasizes this understanding from a young age, making it a fundamental part of financial literacy education.
Analyzing Your Financial Landscape
Moving forward, Brown recommends taking the summer to closely analyze your finances. This involves categorizing your financial life into four key groups: earnings, expenses, investments, and charity. By mapping out these categories, you can determine whether you end each month in a net positive or net negative situation.
This structured approach ensures you are not only aware of your financial status but also better prepared to make informed decisions moving forward. By honing in on these aspects of financial management, you can lay the groundwork for a more secure financial future.
