Mid-Year Financial Review: 4 Key Questions to Keep You on Track

Summertime is finally here and for many of us that means vacations, outdoor adventures, and plenty of fun—but it’s also a great time for a financial review to reflect on your current situation and plan for the second half of the year.

Here are four key questions to ask yourself mid-year, along with some practical tips that can help you stay on track towards your goals:

1. Have your goals changed?

Life is full of changes, and your financial goals may have shifted since the start of the year. Has market volatility impacted your investment portfolio or long-term plans? Have you experienced any major life changes like a new job, marriage, or additions to your family?

Take a moment to reassess your goals and make adjustments as needed. This might involve increasing your retirement contributions, reallocating investments in your portfolio, or setting a new savings goal to align with recent changes in your life. If your situation has changed or you have questions about your plan, consider scheduling a mid-year financial review with your advisor to help ensure you’re still on the right track.

2. How is your credit score looking?

Your credit score is a critical element of your financial health that impacts everything from loan qualification to interest rates. Now is a great time to review your credit report and check for any red flags, such as potential errors or signs of identity theft.

You are entitled to a free credit report each year from the three major credit bureaus, which can be requested at AnnualCreditReport.com. Be sure to review it closely to ensure everything looks accurate. If you spot anything unusual or think your personal information may have been compromised, here are some immediate steps you can take to dispute errors or address potential fraud. Additionally, consider setting up free alerts with your bank or credit card provider to monitor for unusual activity going forward.

3. Are your contributions on track?

Personal and workplace savings plans, such as 401(k)s, IRAs, or emergency funds, are key to establishing long-term financial security. Take a moment to check if you’re contributing enough to meet your short- and long-term goals.

Aim to maximize your contributions to tax-advantaged accounts like a 401(k) or IRA if possible. If you’ve already hit the halfway mark in your annual contribution limits, great! If not, consider increasing your monthly contributions as the year progresses. For emergency savings, it is generally recommended to set aside 3-6 months’ worth of living expenses. If you haven’t reached that goal yet, it’s never too late to continue building out your financial safety net.

4. Does your budget still make sense?

Maybe the first half of the year didn’t go as planned financially. Perhaps market volatility, inflation, or unexpected expenses disrupted your plans. Now is an ideal time to conduct a financial review to assess your spending and budgeting strategies and ensure they still align with your current situation and long-term goals.

Make necessary adjustments to your budget to reflect any changes in your income, savings goals, or expenses. If you’re feeling the impacts of inflation, try to identify areas where you could cut back a bit, like dining out less often or pausing non-essential subscriptions.

Schedule a Mid-Year Financial Review

If these questions have you thinking about your financial strategy heading into the second half of the year, feel free to reach out. A mid-year financial review can help you clarify your goals, ensure your strategy still aligns with your needs, and identify opportunities to strengthen your financial position.

Staying proactive now can help set you up for a strong finish to the year. Enjoy the rest of your summer—and remember, small adjustments today can have a big impact down the road. Whether it’s summertime or any time, our team is here to help you design and maintain a financial plan that makes sense for you.