5 Ways to Turn Your Finances Around in the Second Half of 2024

It's shocking to look at the calendar and realize that half of 2024 is behind us. Typically, we enter the year with a series of resolutions and resolve to fix, among other things, our finances. However, even with that focus, a few important areas typically garner little attention. Below, I describe the five. Where do you stand?

1. Get Goal-Centric

Lay it all out and see where you stand. Review your net worth (assets and liabilities), cash flow (income and expenses) and insurance coverage. Check on progress relative to your financial goals for the year and reconfirm your longer-term goals. Where do you stand on eliminating the debt you resolved to knock out? How about your progress in accumulating funding for that upcoming trip, wedding, etc.? Having a financial plan and relevant goals, and periodically doing a status report, is a truly healthy habit.

2. Protect Your Valuable Stuff

If life has taught me anything, it's this: Stuff happens. Cars get wrecked. Storms and fires destroy houses. Things get stolen. To decrease the financial impact of such events, make sure you have adequate insurance coverage for your home, rented apartment or condo, and your valuable personal property (expensive jewelry, art, collections, etc.). Over time, you've probably accumulated things that require protection, and too often, I've talked with people whose coverage has not kept pace with the things they've accumulated.

3. Save Now for Near-Term Goals

"Plan and save" is a much better financial strategy than "don't plan and borrow." Big, recurring expenses such as holidays, vacations and back-to-school shopping provide the perfect opportunity to develop a monthly savings plan to accumulate, rather than borrow, the money you'll need. Heck, in today's interest-rate environment, you'll even earn some interest. Would you rather make high-interest payments each month to a credit-card company or make payments to yourself that earn interest?

4. Look at Liability

A friend of mine is in the midst of what I, as an observer, would call a ridiculously frivolous lawsuit involving a less-than-5 mph fender-bender causing no damage to either vehicle but a "grievous" neck injury to the lottery-seeking individual he bumped into. The situation drove home the need to remember that if you're found legally responsible following an incident or accident at your home, on the road or on the water, you could find yourself at the wrong end of a costly lawsuit. Protect yourself by making sure you have adequate levels of liability insurance offered through homeowners, renters and auto policies or through a personal umbrella policy.

5. Create an Estate Plan

Wealthy or not, everyone needs a will and/or a trust, a durable power of attorney, a health-care power of attorney and a living will. Many families should also discuss guardianship arrangements for young children. Preparing these documents can be unpleasant as you ideate through the various who's and what's in case something really bad happens. However, the temporary pain of doing the paperwork now can make life easier for your family later if you suddenly become incapacitated or pass away. Put it on your to-do list and knock it out before the year ends.

These money moves are all-important components of your financial wellness, so clean them up as we move through the second half of 2024.

Keep Up With Military Pay Updates

Military pay and benefits are constantly changing. Make sure you're up to date with everything you've earned. Subscribe to Military.com to receive updates on all of your military pay and benefits, delivered directly to your inbox.