It’s hard to believe we are already halfway through the year, but July is now upon us! With six months behind you, this can be a great time to intentionally review your finances and set the tone for the rest of 2025. While it may not seem the same as a New Year’s resolution, taking time at the mid-year point to check in on your finances and track the progress towards your goals can be the difference in achieving your goals and falling off the tracks. If you’re interested in a mid-year checkup for your finance, this article is for you. Throughout this article, I’ll share with you the areas of your finances to review at the halfway point.
Before we dive into the specific areas of your finances to review, it’s important to highlight two key components of a successful mid-year financial check-in. First, set aside intentional, uninterrupted time to focus on your finances. This could be during a quiet evening at home with a home-cooked meal, a relaxing visit to your favorite coffee shop, or while enjoying your favorite playlist in a comfortable setting. The key is to create a distraction-free environment that allows you to reflect and plan effectively. Second, approach your check-in with a clear plan. Outline what you want to review in advance so you can stay focused and ensure you cover the topics that matter most to you. With that in mind, here are the key areas of your finances to review at the halfway point of the year:
Budget: One of the best tools to create awareness with your finances is a budget. A budget paints a picture of how much income you have coming in and how much money is going towards expenses each month. At the mid-year point, check to see how your monthly budget is working out for you. Are you able to stay on track? Has your income or expenses changed? Is your spending aligned with your values? Are there any large, planned expenses to come in the second half of the year? These are all great questions to ask of yourself when looking over your budget.
Savings Goals: At this point in the year, checking to see if you’re on track to reach your savings could be the difference in reaching them by year-end and falling short. When reviewing your savings goal, assess the total amount you still have to save to meet your goal, then reverse engineer back over six months to determine the amount you will have to save on a monthly, semi-monthly, or weekly basis to meet your goal. While you’re reviewing your saving goals, you can also review your current emergency savings to make sure it is fully funded with the appropriate amount.
Taxes: For individuals who make quarterly tax payments, it is crucial to make sure you have paid in the appropriate amount up to this point. Additionally, if you have had a large capital gain from the sale of an asset in the first part of the year, you may want to consider setting some funds aside to pay for the tax bill come next year.
Outstanding Debt: At halfway through the year, reviewing the debt you have can be beneficial in following through with your debt repayment plan. When assessing your outstanding debt, prioritize paying down debt with a higher interest rate first. This can help you save on interest throughout your debt repayment plan. If you have additional cash on hand, you may want to consider making additional payments towards debt to help extinguish it faster.
Investment Portfolio: While we encourage our clients to periodically review their investment portfolio throughout the year, at the mid-year point taking a deep dive to review your portfolio can be beneficial to your long-term success. When reviewing your investment portfolio, you can measure how well it has performed for the first half of the year by looking at the year-to-date return. Additionally, you can review your asset allocation to make sure your investments are still aligned with your goals, time horizon, and risk tolerance.
Estate/Legacy Planning: If a major life event took place in the first half of the year like marriage, having a child, or a death in the family, then it may be a sign to review your estate documents and beneficiaries to see if they still reflect the wishes and desire you have for your assets. If changes need to be made, we’d encourage you to reach out to the right professional to make the changes and not let this area of your finances fall off your radar.
As the year continues to fly by, don’t let the opportunity for a mid-year financial review pass you by. Take this moment to intentionally check in on your finances and create a plan to finish the second half of the year strong. If you’d like support with your review, our team is here to help, just give us a call. We’d be happy to see how we can be of service. Wishing you and your family a joyful summer!
-by Jacob Young, AAMS®, Financial Advisor, RJFS
313 East 10th Ave. • Bowling Green, KY 42101 • Phone: 270-846-2656
Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Ben Smith Life Compass Financial is not a registered broker/dealer and is independent of Raymond James Financial Services.
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This content was created with the assistance of artificial intelligence (AI). While efforts have been made to ensure the quality and reliability of the content, it is important to note that AI-generated content may not always reflect the most current developments or nuanced human perspectives.
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Jacob Young and not necessarily those of Raymond James.
