Few people realize that summer is actually a perfect time to review your finances and to plan your budget. Here are some useful tips how to do it and how to remember your summer holidays not only as a pleasant time to spend money but also useful to think of future prosperity.

Summer vacation bills are now on your declaration. School's about to start! Holidays are in four short months. August may seem like a wasted "dog day", but it's the perfect time for an annual money survey. This calm in late summer will improve its financial prospects for the coming seasons. Don't miss the boat!

Return your budget

Have you spent your budget on summer trips and activities? You're not alone! According to a survey by NerdWallet Harris1, it was found that more than 80% of parents had planned to travel this summer and expected to charge about $ 1,000 from their credit card. It will take more than 5½ years to pay an average of $1,019 fees plus $452 of accrued interest for a credit card with a 15% interest rate. The cost of a vacation will linger long after your tan will disappear, even if you make only the minimum payments on credit cards.

Don't let this summer's bills of exchange be dragged into the year 2024. Build (or rebuild) your budget with the reduction of monthly costs. This will put more money into reducing credit card debt with high interest rates. Make sure you are on track with savings on vacation costs and other expected additional costs. 

Read your credit report

Start the review with a copy of your annual credit report. You have the right to receive one copy free of charge from each of the “big three” credit reporting agencies: TransUnion, Experian and Equifax. Check Credit Scores to reduce errors. They can cause problems when you getting a loan or a new credit card. A 2012 Federal Trade Commission 2 report showed that 26% of those surveyed who checked their reports found potentially significant errors on at least one of them. Make your August the month for troubleshooting (for example, accounts that you have not authorized and so on). Once you have fixed the bugs, monitor your account regularly. (NerdWallet free credit account and report information.)

Check the tax situation

The last full audit of your finances was during the tax season? With four months left on the calendar it's time to see how you're set for the next one. This is especially important this year! The new tax rules may make your income in 2018 different from the previous ones. The Federal income tax calculator can estimate your expected taxes for 2018. You have time to prepare, if the test showed that you may owe a lot.  Adjust your withholding. To do this, you need to file a new W-4 with your employer and / or start saving. Midyear is a good time to check out any issues that plagued you in the previous tax season. Fine-tuning withholding is key: you want to withhold enough to cover your account, but too much tax means you're essentially lending the government, money out of each paycheck. 

Make a larger financial plan

The basics of a financial plan include setting money goals, solving a debt problem with high interest, setting up your emergency fund. A budget helps you to handle unexpected expenses (or “let's hang out” about the overspending of the holiday). The process of creating and maintaining a money plan is beyond that. This will help you steer your financial ship towards goals such as home ownership and healthy retirement. Don't know where to start? Get professional help! Financial consultations come in different forms and price levels. The most affordable option is cheap robo- advisors who create and manage an investment portfolio for you. If you want a more comprehensive financial planning, look for financial advisors only on a paid basis. They are paid only by customers and do not take a commission for the sale of products. Some will charge by the hour or make a plan for a fixed fee.

Check your retirement savings

When was the last time you actually checked your pension fund? Make sure you invest enough to get the full match. Otherwise, you're missing out on free money. Preparing the match? Good! Continue to collect contributions over time. You can invest up to $18,000 from your paycheck to tax deduction ($24,500 if you're 50 or older) each year. Remember that additional contributions to increase your pension fund. They also reduce your income tax. Check your traditional or Roth individual retirement account. The government also sets annual contribution limits for these tax-exempt accounts at $ 5,500 per year ($6,500 if you're 50 years old or older), taking into account income limits.