It's hard to believe that we've reached the midpoint of 2023. But alas, here we are, and that means it's time for an essential financial checkup.
As a busy mom, carving out time for one may be easier said than done. But here are a few key moves you should try to make sooner rather than later.
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1. See what you've contributed toward retirement savings
IRAs max out this year at $6,500 for workers under age 50 and $7,500 for those 50 and older. If you have access to a 401(k) plan, you can contribute up to $22,500 if you're not yet 50 or $30,000 if you're 50 or older.
Now your goal may not be to max out per se. But it's a good idea to see how money you've allocated to retirement savings so far to make sure you're on track to meet your target.
Remember, you can fund your 2023 IRA beyond the end of the year -- you have until the 2024 tax-filing deadline. But if you want your 401(k) contributions to count for 2023, they must hit your account by December 31 of this year.
2. Tackle high-interest debt
The more high-interest debt you continue to carry, the more money you'll end up throwing away. Now's a good time to assess your debt and see if there's a better option for paying it off. That could mean doing a balance transfer to snag a lower interest rate (or even a 0% introductory APR to get a reprieve from interest for a good number of months) or consolidating with a home equity or personal loan.
3. Make sure your portfolio is well diversified
Tech stocks in particular have rallied in 2023. That's a good thing in theory, but it could mean that your portfolio is no longer as diverse as you thought it was.
Even if you're not so heavily invested in tech companies, the midpoint of the year is generally a good time to make sure your portfolio is well-balanced. And since stock values are generally up right now compared to a year ago, it may be a good time to make changes to your portfolio.
In fact, some financial experts are still pretty convinced that a recession is in the cards for 2023. So now's a good time to do your rebalancing -- before the economy potentially worsens and takes the stock market down with it.
4. Start socking money away for the holidays
The holidays can be the most expensive time of the year for parents. Rather than risk debt in the course of celebrating, start saving for them now. Allocate money each month for things like gift purchases and decorations so you're not left to scramble -- or whip out your credit cards -- in November and December.
Your primary objective at this point of the year may be to keep your kids occupied while school's not in session. But it's also important to give your finances a closer look -- and take these steps so you can close out the year in a solid place.
