Your Mid-Year Financial Check-In

I might be a little biased, but I love a mid-year check-in. It gives me the chance to plan for myself, the business, and clients. Looking at your goals also means checking in with your finances because most goals have a financial aspect to them. ?

Below I’m breaking down the 8 areas of your financial life to assess during this mid-year check-in. This weekend I encourage you to set aside some time for yourself individually or with your spouse to go through each step. And if you don’t want to do this process alone, you can book a 60-minute strategy session here. ?

1. Review Your Budget?

Start with a thorough review of your current budget (remember your budget can be as strict or flexible as you need but should be one that works for you):?

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• Examine Spending Habits: Compare your planned expenses against actual spending. Look for areas where you’ve overspent and identify categories where you can cut back.?

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• Adjust Budgets: Based on your spending review, make the necessary adjustments to your budgets for the rest of the year. Consider any changes in your income or expenses since the beginning of the year.?

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2. Evaluate Your Emergency Fund?

We never think an emergency is going to happen- well at least we hope it won’t. But that doesn’t mean we shouldn’t be prepared ?

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• Assess Fund Adequacy: If you don’t have one already, work toward an emergency fund that covers at least three to six months of living expenses. If you aren’t near your goal yet, plan how you can bolster this fund in the second half of the year.?

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• Replenish If Needed: If you’ve had to dip into your emergency fund, it’s alright! That’s why you have it. However, now you need to make a plan to replenish it. Prioritize this to avoid potential financial strain going forward.?

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3. Reassess Your Financial Goals?

Your goals may have changed or the timeline for them. Use this time to asses and reflect rather than judge ?

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• Goal Progress: Evaluate how close you are to achieving the goals you set at the beginning of the year. This could be saving for a down payment, paying off debt, building a plan to pay for healthcare in retirement, or investing more of your retirement savings.?

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• Adjust Goals as Necessary: Life circumstances change, and so may your financial goals. Adjust your strategies to better align with your current situation and future aspirations.?

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If you neglected to set goals at the start of the year, it’s not too late! There is nothing magical about January 1, so get started setting your goals now with the S.M.A.R.T. goals framework.?

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4. Check Credit Reports?

Regular checks on your credit report can help you catch and rectify any inaccuracies that might affect your financial health, not to mention helping you spot identity theft which can happen at any time?

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• Request Credit Reports: You can obtain a free credit report from each of the three major credit bureaus once per year at AnnualCreditReport.com.?

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• Review for Accuracy: Look for any discrepancies or fraudulent activities. Promptly report any errors to the credit bureau for correction.?

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5. Review Insurance Coverages?

Your life may have had some big changes in the first half of 2024 so it’s important to periodically review your policies:?

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• Assess Coverage Needs: Consider changes in your life that might affect your insurance needs, such as buying a new home, changing marital status, or adding a family member.?

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• Shop for Better Rates: Compare your current policies with what’s available on the market to see if you can find better rates or more comprehensive coverage for the same price.?

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6. Optimize Your Investments?

Market conditions change, and so should your investment strategies:?

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• Portfolio Review: Assess the performance of your investments and consider rebalancing if your asset allocation has drifted from your target, which happens to many investors over time.?

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• Tax-Saving Strategies: Consider tax implications of any buy or sell actions in your portfolio and explore opportunities like tax-loss harvesting to offset gains.?

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7. Plan for Tax Liabilities?

You may be breathing a sigh of relief with tax season behind you (I know I am), but working all year round to understand your potential tax liabilities can help you manage your finances more effectively:?

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• Estimate Taxes: Use your current earnings and expenses to estimate your tax liability for the year.?

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• Adjust Withholdings: If you anticipate a major tax bill or a significant refund, adjust your tax withholdings accordingly to better manage your cash flow.?

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8. Reflect on Your Financial Well-Being?

This step is a subjective addition to your mid-year financial reset checklist because financial well-being means different things to different people. So, decide what it means to you and take a moment to reflect on how you’re feeling about your finances:?

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• Financial Stress Test: Consider how you would handle a financial emergency. Do you feel confident about your financial situation??

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• Educational Opportunities: Look for ways to improve your financial literacy. Engaging with financial news, books, or seminars can provide valuable insights and enhance your financial decision-making skills.?

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Looking to talk through your financial review or need not sure where to go from here? Your financial picture is personal. Because of this I have opened up a few 1:1 slots for mid-year reviews in addition to those I host for my current clients. In order to book your session head to this link. ?