As we approach the halfway mark of the year, it’s the perfect time to hit āpauseā and take stock of your financial wellness. A mid-year check-up isnāt just for businessesāitās just as essential for individuals and families to ensure their finances are aligned with their goals. Hereās a practical checklist to guide your review and help you finish the year strong.
š 1. Revisit Your Budget
If your budget has been āset it and forget it,ā nowās the time to revisit:
- Are your actual expenses aligning with your expectations?
- Have your income streams changed?
- Are there recurring expenses that can be cut or negotiated?
Tip: Use budgeting apps like YNAB or Mint to track and recalibrate.
š¼ 2. Review Income & Tax Withholding
Have there been changes in employment, bonuses, freelance work, or side gigs? These shifts may affect your tax liability.
- Check your latest pay stub or IRS Tax Withholding Estimator.
- Adjust W-4s if needed.
- Plan for estimated tax payments if you’re self-employed.
š° 3. Assess Retirement Contributions
Are you on track with your retirement savings?
- Review 401(k), IRA, or Roth IRA contributions.
- Consider increasing your contribution rate, even by 1%.
- If youāre 50 or older, remember catch-up contributions.
š”ļø 4. Re-Evaluate Insurance Coverage
Your life changesāso should your coverage.
- Life insurance: Does your policy match your current needs?
- Health insurance: Have there been changes in dependents or usage?
- Home/auto insurance: Check for better rates or bundling options.
š 5. Check In on Investments
Take time to:
- Review asset allocation and rebalance if needed.
- Match investment risk with your financial goals.
- Avoid knee-jerk reactions to market volatility.
š§¾ 6. Track Tax-Saving Opportunities
Mid-year is a prime time to make proactive moves:
- Maximize HSA and FSA contributions.
- Plan charitable donations.
- Harvest losses or gains strategically.
š 7. Update Financial Documents
Has anything changed in your family or estate?
- Review or create a will, power of attorney, or healthcare directive.
- Check beneficiary designations on accounts and policies.
š§ 8. Set or Re-Evaluate Financial Goals
Ask yourself:
- What do I want to achieve by year-end?
- Are my short- and long-term goals still relevant?
- How will I track progress?
ā Wrap-Up: Make It a Habit
A mid-year money check-up isn’t a one-time eventāitās part of a healthy financial routine. Schedule this review each summer or during a quiet period. And donāt go it aloneāa CPA can help you plan strategically, minimize taxes, and make confident financial decisions.
Need Help Navigating Your Mid-Year Financial Check-Up?
Letās connect! As your trusted CPA, we here to offer tailored insights that align with your life and business goals.