Steer your financial future: The mid-year checkup you didn't know you needed
With 2025 nearly halfway over, the Ohio Department of Commerce, Division of Financial Institutions encourages all Ohioans to perform a mid-year financial checkup to help ensure they remain on track toward achieving and maintaining their financial goals this year.
According to a study released earlier this year by Experian, U.S. consumers owe $17.57 trillion in total debt, which is a 2.4% increase from the previous year, with debt involving credit cards increasing at close to a double-digit rate. The study also found that the average amount of consumer debt in Ohio was nearly $75,000. These statistics highlight some of the significant financial pressures many households are currently experiencing.
According to Division Superintendent Kevin Allard, the first step to tackling financial challenges is to find small, manageable ways to save money and let those savings gradually build up over time.
“Making time for a mid-year financial review allows you to ensure you are on track to achieve your short- and long-term goals,” Allard said. “This process provides an opportunity to reflect on your financial progress and make necessary adjustments. Even if you’ve fallen behind, it doesn’t have to be stressful. Small, actionable steps can help you regain momentum and prepare for those important milestones you’re looking forward to. By taking a proactive approach, you can address any financial challenges early and set yourself up for success in the months ahead. It’s not too late to make 2025 the year where you establish firm financial footing.”
The Division recommends taking the following steps to complete this important financial checkup:
• Update Your Budget: Review spending patterns and identify unnecessary expenses like subscription services or excess indulgences so you can reallocate funds effectively.
• Maximize Retirement Contributions: Take advantage of employer 401(k) matches or consider increasing contributions where possible to secure long-term financial gains.
• Tackle High-Interest Debt: Prioritize paying down credit card debt or other forms of high-interest liabilities to reduce financial strain.
• Build an Emergency Fund: Safeguard against unexpected expenses by maintaining at least three to six months’ worth of living expenses in a liquid savings account that you can access if and when needed.
• Invest In Your Future Goals: Continue investing toward key objectives such as home ownership, education savings or retirement. Investing even a little bit on a consistent basis can make a significant difference in the long run.
For additional guidance, Ohioans should utilize credit monitoring tools and review their credit reports via AnnualCreditReport.com or through the various consumer reporting agencies.
By conducting a credit check on a regular basis, you can help identify potential errors or early signs of identity theft, ensuring your financial peace of mind. For additional helpful mid-year financial tips from the Division, go to https://com.ohio.gov/divisions-and-programs/financial-institutions/cons….