August Financial Checklist: Time to Revisit Loose Ends Before Fall

As we enter the home stretch of summer, August gives you a brief but valuable window to regroup financially before the fall rush hits. Whether you’re returning from vacation, prepping for back-to-school season, or simply aiming to end the year strong, now is a great time to take stock and get organized.

Revisit Your Spending and Budget

Mid-year is a good time to revisit your budget and spending patterns. Are you on track with what you set out to accomplish financially this year? For many, summer comes with increased spending—travel, weddings, events—which can easily throw your budget off course. Use this time to review your financial activity. If your accounts are automated through a financial software or platform, take advantage of those tools to identify trends and evaluate where you may need to adjust heading into the fall.

Review Your Emergency Fund and Cash Reserves

Emergency savings needs look different for everyone. The key is making sure you have an amount that makes you feel secure and prepared—whether that’s two months or twelve months of expenses. The goal is peace of mind. If you’re holding a larger-than-necessary cash cushion, make sure it’s not sitting in an account earning next to nothing. Take advantage of high-yield savings options while they’re still available—accounts earning 4–5% or more are worth considering, especially with the Federal Reserve expected to begin cutting interest rates later this year. Once that happens, those yields won’t stick around forever.

Check Investment Allocations and Rebalance if Needed

Markets have been anything but predictable this year, and with volatility comes opportunity—but also the need for discipline. Now is a great time to check whether your investment allocations still align with your goals, timeline, and risk comfort. If you haven’t rebalanced in a while, your portfolio may have drifted off target. Rebalancing helps maintain the proper asset mix and keeps your long-term strategy intact. For taxable accounts, you may also want to look at unrealized losses to prepare for potential tax-loss harvesting later in the year.

Look Ahead to Upcoming Expenses

From tuition bills and extracurricular fees to fall travel and home projects, August is when those “future” expenses start becoming immediate. Review what’s coming down the pipeline for the next few months and build those into your cash flow plan. Whether it’s holiday travel, weddings, or renovation costs, preparing now gives you time to decide how you want to fund those obligations—whether from cash flow, savings, or structured payment plans.

Review Retirement Contributions

If you contribute to a 401(k), 403(b), or similar plan, check your year-to-date contribution levels. Are you on pace to max out by December 31? If not, increasing your contribution slightly for the remainder of the year can help you stay on track. For IRAs and Roth IRAs, now’s a good time to consider whether your income is still within eligibility thresholds—or if a backdoor Roth strategy might make sense before year-end.

Prepare for Open Enrollment Season

Even though most employers don’t open benefits enrollment until the fall, August is an ideal time to get your bearings. Review your current elections for health insurance, HSAs, FSAs, and dependent care benefits. If you’ve experienced a recent life event—like a move, marriage, or a new child—your benefit needs may have changed. Now is also a great time to ask your HR department any questions you have about coverage or plan options while things are still quiet. Getting clarity ahead of time can make the formal enrollment process far smoother later on.

Tidy Up Tax Planning

If you make quarterly tax payments, remember that your next estimated payment is due on September 15. Beyond that, look at your current tax position for 2025. Have your income or deductions shifted this year? If you’re planning charitable giving, this could be a good time to explore donor-advised funds or other tax-efficient strategies while you still have time to execute. And if you or your family members are subject to required minimum distributions (RMDs), make sure those are scheduled well ahead of the December 31 deadline.

Review Estate Documents and Insurance Coverage

August is also a smart time to check in on estate planning and insurance. Confirm your beneficiary designations on retirement accounts and life insurance policies—this step is often overlooked and can be critical. If it’s been a few years since your will, trust, or powers of attorney were reviewed, or if you’ve had major life changes, schedule time with your estate attorney or financial advisor. Also take a fresh look at your home, auto, and umbrella insurance coverage. If your property value has changed or you’ve added new drivers to your household, your liability needs may be different than they were a year ago.

Schedule a Year-End Strategy Meeting

Finally, it’s not too early to set up a strategy session to close out the year strong. Year-end planning touches everything from tax moves and retirement contributions to charitable giving, investment positioning, and goal setting for 2026. Locking in a meeting this month ensures you’ll have plenty of time to make adjustments before the year wraps up. If you’d like to schedule a time to review your financial plan, prepare for open enrollment, or get ahead of year-end decisions, we’re here to help. Reach out to us with any questions at info@shermanwealth.com or schedule a complimentary intro call here.