Mid-Year Financial Checkup: Are You on Track?

As quarter two comes to a close, it's a perfect time to take a step back and assess your financial health. Just like an annual physical or car maintenance, a mid-year financial checkup helps ensure you're on track to meet your goals and can adjust your plans if necessary. 

This guide will walk you through the key areas to review and provide tips to help make the second half of the year even more financially successful.

1. Review Your Budget

The foundation of financial health is a well-maintained budget. Mid-year is a great time to review your budget and see if it still aligns with your financial goals and lifestyle.

Steps to Review Your Budget:

  • Compare Actual Spending to Budgeted Amounts: Look at the first six months of the year and compare what you spent to what you planned to spend.
  • Identify Variances: Note any significant differences between your budgeted and actual expenses. Are you consistently overspending in certain categories?
  • Adjust for Changes: If your income or expenses have changed, update your budget accordingly. This might include raises, bonuses, or new recurring expenses.

2. Assess Your Savings

Savings are crucial for financial security and helping you achieve long-term goals. Assessing your savings mid-year can help ensure you're on track.

Savings Accounts:

  • Check Your Balance: Ideally, you should have three to six months' worth of living expenses saved.
  • Adjust Contributions if Needed: If your account is less than what you planned for it to be, consider reallocating some discretionary spending to boost your savings.

Retirement Savings:

  • Review Your Contributions: Are you contributing enough to your 401(k) or IRA? Make sure you're on track to max out your contributions if that's part of your goal.
  • Check Investment Performance: Review the performance of your retirement accounts and consider rebalancing your portfolio if needed.

Short-Term Savings Goals:

  • Track Progress: Whether it's a vacation, home improvement, or a new car, ensure you're on track to meet your short-term savings goals.
  • Adjust Savings Plans: If you're falling short, you might need to adjust your monthly savings targets or re-evaluate your goals.

3. Evaluate Debt Management

Debt can be a significant barrier to financial health. Mid-year is a good time to evaluate your debt repayment strategy.

Steps to Evaluate Debt Management:

  • List All Debts: Include balances, interest rates, and minimum payments for each debt.
  • Review Your Repayment Plan: Are you making progress in paying down your debts? Are you prioritizing high-interest debts?
  • Consider Refinancing: If interest rates have dropped, you might benefit from refinancing high-interest debt to lower your monthly payments.

4. Monitor Your Credit Score

Your credit score is a key indicator of your financial health. It affects your ability to get loans, credit cards, and even jobs.

Steps to Monitor Your Credit Score:

  • Check Your Score: Use a free service or your bank’s tools to check your current credit score.
  • Review Your Credit Report: Look for errors or signs of fraud. Dispute any inaccuracies with the credit bureaus.
  • Take Action to Improve Your Score: Pay bills on time, reduce credit card balances, and avoid opening new lines of credit unnecessarily.

5. Revisit Your Financial Goals

Setting financial goals is essential, but it's equally important to revisit and adjust them as needed.

Steps to Revisit Financial Goals:

  • Review Your Goals: Are your goals still relevant? Have your priorities changed?
  • Track Progress: Assess how far you've come toward each goal. Are you on track to meet your deadlines?
  • Adjust Plans: If you've fallen behind, consider what changes you need to make to get back on track. This might include increasing savings rates or cutting unnecessary expenses.

6. Plan for Taxes

Mid-year is also an excellent time to start planning for taxes. Proper tax planning can help you avoid surprises and potentially reduce your tax liability.

Steps for Tax Planning:

  • Review Withholdings: Use the IRS withholding calculator to see if you're having the right amount withheld from your paycheck.
  • Consider Tax-Advantaged Accounts: Make sure you're taking full advantage of tax-advantaged accounts like 401(k)s, IRAs, and HSAs.
  • Organize Documents: Start gathering and organizing documents you'll need for tax filing, such as receipts for deductible expenses.

7. Insurance Checkup

Insurance is a critical component of financial planning, helping protect you from unexpected financial setbacks.

Steps for an Insurance Checkup:

  • Review Coverage: Ensure your health, home, auto, and life insurance coverage still meets your needs.
  • Compare Rates: Shop around to see if you can get better coverage or rates.
  • Update Beneficiaries: Make sure the beneficiaries on your life insurance and retirement accounts are up to date.

8. Consult a Wealth Manager

If your financial situation is complex or you feel uncertain about your financial plan, consulting a wealth manager can be beneficial.

Benefits of a Wealth Manager:

  • Knowledgeable Advice: They can provide tailored advice based on your unique situation.
  • Comprehensive Planning: A wealth manager can help with everything from budgeting to investing to retirement planning.
  • Accountability: Regular check-ins with a wealth manager can help keep you on track.

Working with NJM Wealth Preservation Strategies

NJM Wealth Preservation Strategies offers comprehensive financial planning services. We can help you with investment management, retirement planning, tax planning, and more. Our team of wealth managers will work closely with you to create a personalized financial plan that aligns with your goals and values. We take a holistic approach, considering all aspects of your financial life to help ensure you’re on the right path.

With personalized financial strategies and knowledgeable advice, NJM Wealth Preservation Strategies provides ongoing support to help you achieve your financial goals. Our team is dedicated to helping you preserve and grow your wealth. We offer services such as portfolio management, estate planning, tax strategies, and more. By working with NJM Wealth Preservation Strategies, you can have peace of mind knowing that your financial future is in capable hands.

Contact us today for a complimentary consultation. 

Final Thoughts

A mid-year financial checkup is an invaluable tool for staying on track with your financial goals. Reviewing your budget, assessing your savings, managing debt, monitoring your credit score, revisiting your goals, planning for taxes, checking your insurance, and potentially consulting a wealth manager can help ensure you're on a solid path to financial health. 

Remember, the key to financial success is regular review and adjustment. Use this mid-year checkpoint to make any necessary changes and set yourself up for a prosperous second half of the year.


Why is a mid-year financial checkup important?

A mid-year financial checkup allows you to catch any issues early, adjust your goals, and ensure you're on track for the year. It helps you identify any changes needed to stay aligned with your financial plan.

How can NJM Wealth Preservation Strategies assist with financial planning?

NJM Wealth Preservation Strategies offers personalized financial strategies, investment management, retirement planning, and ongoing support to help you achieve your financial goals. Our team provides advice and tailored solutions to meet your unique needs.

What should I include in my financial checkup?

Your financial checkup should include reviewing your budget, savings, investments, retirement accounts, debts, tax planning, insurance coverage, and estate planning. This comprehensive approach helps ensure all aspects of your financial health are covered.

How often should I review my financial plan?

It's recommended to review your financial plan at least twice a year, with a mid-year checkup and an end-of-year review. Regular reviews help you stay on track and make necessary adjustments as your financial situation changes.

What are the benefits of working with a wealth management company?

Working with a wealth management company provides you with advice, personalized strategies, and ongoing support to help you achieve your financial goals. They offer a holistic approach to financial planning, helping ensure all aspects of your financial life are considered.