12 Smart Money Management Tips to See You Through the Rest of the Year

Getting better at managing your money is a big, worthwhile goal—so make it easier by breaking it up into smaller tasks throughout the year. You can build a plan that only requires a small time commitment each month as you check off your financial to-do list.

Some money tasks are better to start at certain times of the year, while you can do others any time. Similarly, some tasks only happen once per year, but others require more regular attention. 

Not sure where to start? Here are 12 money management tips to help you build your year-round financial strategy.

1. Create a Budget and Update It Quarterly

It’s much easier to take control of your finances and improve your money skills and habits with a budget. At its core, a budget is just a spending plan based on your income and expenses. 

It's never a bad time to start a budget—or to update one. At minimum, consider updating your budget every quarter (three months). And definitely update it if you have a major life change, such as a new job or new addition to the family.

Your budget can be as simple or complicated as you want. You can do it on paper, or use a budgeting app. Some of the most popular types of budgets include:

• Line-Item. With a line-item budget, you list your expenses for an entire year. As you go through the year, you compare current expenses to previous ones to check if you’re on track. If you go this route, be sure to add a savings line item to your list of expenses so you don’t forget to save.

• Pay yourself first. With this method, you devote a certain percentage of your income to savings as soon as you get paid. This is a great option if saving money is your top priority.

• Zero-sum. With this kind of budget, you assign each dollar of your monthly after-tax income a “job.” This budget can help you figure out what is most important to you, and maximize your cash.

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2. Check and Adjust Your Retirement Savings Annually

Checking up on your retirement savings is a great thing to do at least once a year, ideally toward the beginning of the year. If you've invested your retirement savings through an IRA (individual retirement account) or 401(k), that account has an annual contribution limit. You can check the limit for the year, and plan your contributions to maximize how much you save.

Additionally, check on the balance of your retirement investments. The percentage of your money you have in different investments can shift over time, so you may need to readjust once a year to stay at the risk level you prefer.

3. File Taxes as Soon as Possible

Yes, taxes are usually due April 15th. However, you don’t want to wait until the last minute to get your tax situation squared away. Not only does that delay your refund, it could increase the risk of an identity thief stealing your money. 

To prepare for tax time, you should:

• Figure out if you’re going to do your taxes yourself, use software, or enlist the help of a professional.

• By the end of January, you should’ve received all the documents you need to file your taxes. These may include W2s, 1099s, and form 1098. If you plan on itemizing, round up all your receipts in addition to these documents.

• Look into any credits or deductions you may qualify for this year due to changes in your life, such as if you bought a house or had a child.

4. If You Haven't Used It This Year, Sell It

Whether you like to spring clean or autumn tidy, cleansing your house of excess clutter can pay off. As you clean your house, don’t just throw everything away. Just because you no longer need it doesn't mean it has no value. Items in good shape that still work may be worth some money to someone else. A good rule of thumb is to get rid of anything you haven't used in the last 12 months. 

Use this as an opportunity to earn some extra money by selling items on Facebook Marketplace, eBay, LetGo, Poshmark, or any of the dozens of online marketplaces. Another option is to host a garage sale, or donate items for a charitable tax deduction.

5. Keep a Separate Vacation Fund and Save Year-Round

That summer vacation will be a lot more relaxing if you aren't worried about paying it off. A good way to keep the vacation vibes positive is to start saving well before it's time to hit the beach.

A separate savings account just for your vacation fund can give you a clear view of your progress. It also helps keep the cash out of sight—and out of mind. If you can add $100 a month to your vacation account, that's $1,200 toward a great annual trip.

If you find it hard to finance a vacation fund, consider ways to slim down your vacation budget, or turn it into a staycation. Any time off you spend relaxing can help you de-stress and recharge.

6. Build Up Your Emergency Fund Every Pay Period

Another thing to save for year-round is your emergency fund. This is money you set aside only for emergencies that would otherwise break your budget, such as an unexpected car repair or medical expense.

Any amount you set aside for an emergency fund is a good start. Aim for at least $1,000, then work your way up. Experts suggest having at least three to six months' worth of expenses set aside for larger emergencies like job loss.

A great way to build up your emergency fund is to set up automatic transfers every pay period. That way, you don't have to remember to save—it happens for you! Here's a look at how even small contributions can build up to a healthy emergency fund over time:

Keep your emergency fund in a high-yield savings or money market account so it earns interest and grows even faster.

7. Have A Mid-Year Personal Finance Check-Up

July 1 marks the halfway point of the year, and it's an excellent time to stop and reflect on your financial goals. Think of Independence Day in a new way: Are you more independent from overspending and debt this year? It’s a great time to look at how you’ve spent your money over the past six months.

If your budget shows you’ve overspent on things that don’t mean much to you, try to make some adjustments and be more intentional with your money in the next several months. On the contrary, if you’ve been doing a good job with your spending, congratulate yourself, and keep up the good work.

8. Comparison Shop Everything as It Renews

Many of the things we buy are sold by multiple companies, so there is usually room to shop around. It can pay off big-time to look around for cheaper prices on your household essentials.

Here are a few things to rate-shop annually:

• Car insurance

• Homeowners insurance

• Internet service

• Cell phone service

• Checking and savings accounts

• Gym and fitness memberships

• Cable and streaming services

• Trash pick-up and utilities

Also consider your other regular expenses. For example, you may go to the same grocery store every week out of habit, when another store nearby could save you more money. You can also evaluate things like streaming services that you may have used less this year than last year.

9. Use Up Your Annual Spending Accounts

Many annual spending accounts or credits expire if you don't use them. For example, if you have a Flexible Spending Account (FSA) that covers medical expenses, unused funds over the carryover limit may be forfeit at the end of the year. 

You may also have annual benefits from your employer, memberships, or credit cards that need to be used before the new year so they don't disappear.

Keep a list of any programs that offer these kinds of benefits, and check on them quarterly to see if you're on track to use your benefits. If not, see if you can use these benefits to meet a current need.

10. Start Saving for Winter Holidays in the Spring

It's never too early to start saving up for the holiday giving and shopping season. According to the National Retail Federation, the average person spends a whopping $900 on the holidays, including gifts, food, and decor. 

That kind of holiday budget is much easier to manage if you plan ahead. Start saving at least a few months ahead of the holidays to avoid holiday debt while still getting something for everyone on your list. Before you know it, December will be here, and you’ll be ready to shop for gifts and holiday celebrations. 

Not sure when to start saving? Any time can work, but if you started saving in January, you could reach that $900 budget with just $82 a month. If you start in July, you can get there by saving $180 a month.

11. Check Updates to Insurance Plans Annually

The details of your health, home, auto, and pet insurance policies can change when you enroll for the next year. Similarly, memberships, credit cards, and other annual subscriptions can change at renewal.

In addition to comparing prices every year, it's important to read through any changes to terms and conditions. This is particularly important for health insurance, which can have big changes from one year to the next. 

If your current health insurance plan is no longer the best fit, shop around and enroll in a new plan for the upcoming year. Here are a few reasons you may want to switch plans:

• Your current plan no longer covers an important prescription.

• You were recently diagnosed with a medical condition that results in higher medical costs.

• Your doctor does not accept your plan anymore.

• You made adjustments in the previous year, but don’t need them anymore.

12. Learn from This Year's Mistakes in the Next

At the end of every year, take the time to make a financial plan for the upcoming year. Think about the goals you want to set for the next 12 months, and how you can get there.

This is also a good time to look back on the previous 12 months to see what lessons you can learn. No one is perfect, and we all have areas where we can improve our money management skills.

Remember to celebrate the victories from the previous year as well. Maybe you paid off a credit card, or perhaps you started working with a debt settlement company. Celebrate any steps you took to make positive changes to your financial situation; those victories can help you stay motivated in the year to come.