ORLANDO, Fla. – Summer is usually the season for vacations, backyard barbecues, and taking a break from the daily grind. But it can also be one of the best times of year to take a fresh look at your finances.
With half the year already behind us, July is a natural checkpoint to review your spending, boost your savings, and make sure you’re still on track to meet your financial goals before year’s end.
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Even a few small adjustments now can have a meaningful impact over the next six months.
CBS News Business Analyst Jill Schlesinger recently shared several mid-year money moves that could help consumers save more, cut unnecessary expenses, and strengthen their financial future. Here’s the full transcript of our conversation with Jill:
WKMG-TV: It’s summer and you might not want to deal with your finances, however, CBS News Business Analyst Jill Schlesinger says a little bit of focus now might help you save for the future.
Jill? Okay, where should we start?
Jill Schlesinger: I know you’re going to love this because who doesn’t want to do this in the summer, but how about reviewing the spending that you’ve done for the first six months of the year? If you don’t use an app, use those bank statements, credit card bills, and check out the automatic subscriptions on Apple Pay or Google Pay. You’re trying to identify some amount of money, no matter how small, that you could use to either save or maybe to pay down your outstanding debt.
Next, if you do have a savings account, maybe you’re earning a really teeny bit of money on that account. And so all you need to do is a quick internet search for high-yield savings accounts or money market CDs. Maybe you go from less than a half a percent on a yearly basis to almost 4% on those emergency reserves, so do check that out.
WKMG-TV: And Jill, both home and auto insurance premiums continue to rise. Is there any way to help lower those bills?
Jill Schlesinger: I think shopping around is really important, considering bundling your coverage, but mostly educate yourself. There are ways to qualify for discounts, everything from a security system to paying for a full year versus monthly to taking a defensive driving course. If you are driving an older car, and I know many Americans are doing this, you may want to consider dropping the collision or the comprehensive coverage. Those older cars, it may not be worth it. Check that out.
You can do that at Kelley Blue Book to see the value of your car. If the car is worth less than 10 times that extra premium amount, maybe you just drop it.
WKMG-TV: And is there anything we should do for our retirement accounts?
Jill Schlesinger: We are changing jobs more often. That means you’re leaving old retirement accounts all over the place. So to better manage them, to reduce the cost, try to consolidate them into one account. You’re looking for an account that offers low-cost index funds. Maybe it’s your current employer, but maybe you’ll open up an account somewhere else.
If you can’t afford to do so, try to increase those retirement contribution levels. You still have six months of the year. The limits are really high this year, 24,500 for work-based plans. If you’re over 50, you can add an extra $8,000. If you are 60 to 63, you could add $11,250. That’s a ton of money, right?
Traditional Roth IRA limit, it’s $7,500. The catch-up contribution is $1,100 if you’re over the age of 50. I guess what’s most important is that any small amount that you can to these accounts now will pay off for you in the future.
WKMG-TV: Jill, thank you so much. You can see Jill regularly on CBS Mornings and the CBS Evening News. For more analysis, go to Jill on Money.com.