Mastering Your Mid-Year Financial Check-In

The sun is shining, and the smell of barbecue aroma is in the air. That can only mean two things—it is summer, and it’s time for your mid-year money check-up.

Having good financial hygiene includes reviewing your budget and spending habits to make sure you’re on track to reach your financial goals. The needs of you and your family can change, and your financial plans can change, too. A solid plan can reduce stress, provide clarity and focus, and enhance your overall financial security. Checking in at mid-year will allow you to have time to pivot in case there are any necessary adjustments.

Here is a process that could help you take the pulse on your money status:

Assess your goals

If you created goals at the beginning of the year, now is the time to re-evaluate them. Write them down and decide if they still currently fit into your life and priorities. Are they realistically achievable? Life changes, and so do priorities. It’s OK to adjust your goals as things shift.

If you haven’t set any financial goals for the year, you could set some. Here are a few examples of broad financial goals (but the more concrete and specific you can make them to match your financial situation, the better!):

• Pay off credit card debt
• Save for retirement
• Build an emergency fund
• Save for your child’s tuition
• Increase income with a side hustle

Achieving your financial goals will take more than just luck. Assessing your goals and having a clear roadmap will provide the discipline needed to turn dreams into a reality.

Gather documents and review your budget

Now that you have a goal that you are working towards, let’s paint a clear picture of your finances. Collect statements for all your accounts, including bank statements, credit cards, pay stubs, and your budgeting tool or spreadsheet. Use those documents to assess your spending habits.

Did you spend more on groceries than anticipated? Now is the time to make a note of that and adjust your budget accordingly. If you haven’t created a budget or goals for yourself, now is a good time to create one. Here is a helpful budgeting tool you can start with to categorize expenses.

Manage your debts

It’s time to face the numbers and get a clear picture of what you owe. This includes credit cards, student loans, car loans, mortgages, etc. Write down the interest rates and minimum payments for each.

Now, check in on your progress. Are you chipping away at your debt repayment goals? If you are still on the right track, excellent job! If not, take some time to think about what prevented you from doing so.

Some choose to focus their debt repayment strategy on high-interest debts first. Others select smaller balances for motivational wins. Make sure that the option that you chose still works for you and is sustainable until the end of the year.

Evaluate your savings

Once you’ve budgeted for your expenses, it’s time to shift to your savings. It is typically recommended to have three to six months of expenses at minimum in your emergency savings account. That may seem like a lot, but you’ll be glad you have it when something unexpected happens! If you do not have savings, make building your safety net a priority for the rest of the year if you can.

Then, separate the rest of your savings towards your financial goals. Are you still on track to afford that trip to the Bahamas in the winter when the rest of the Northeast is digging out of snow? Great! Your friends will all be jealous, and you’ll be glad you planned it ahead of time.

Map your path forward

Based on your findings of income, spending, and debt, analyze whether you need to make any adjustments. Did you uncover any patterns that you were not aware of before? Perhaps that ice cream habit has become too expensive (for the record, there’s never too much ice cream, though), or you’ve discovered you are overspending on clothing despite having a closet full of clothes.

Additional topics to consider reviewing are insurance, retirement contributions, charitable planning, and college savings.

You choose, and you decide your path. You get to decide what your financial goals are and what will get you there. A mid-year tune up on your finances allows you to revise your budget, tweak your goals, and even consider professional advice if you want.

At the end of the day, a mid-year check-in isn’t about being perfect. It’s about making progress. By taking the time to get clear on your spending and saving habits, you can make informed decisions that lead to achieving financial goals.