August Financial Checklist: A Mid-Year Financial Tune-Up

ByAshley Hours Categories Financial Planning

As summer draws to a close and we head into the latter half of the year, August is the perfect time to give your finances a mid-year checkup. With back-to-school expenses looming, and the holiday season not too far off, getting your financial house in order now can help you stay on track for the rest of the year. So, let’s dive into some checklist items you can work on this month.

Review Your Budget 

August is a great time to revisit your budget. Take a look at your income and expenses over the past few months. Are you staying within your budget, or are there areas where you’re overspending? Adjust your budget as necessary to reflect any changes in your financial situation. This can include:

  • Unexpected Expenses: Did you have any unexpected expenses? If so, how did they impact your overall budget?
  • Upcoming Costs: Are there any significant costs on the horizon, such as back-to-school supplies or holiday travel?
  • Savings Goals: Are you on track with your savings goals, or do you need to make adjustments?

Review Your Global Asset Allocation

When reviewing your financial strategy this August, it’s crucial to assess your global asset allocation. Ensure that your investments align with your current risk tolerance and financial goals. Especially during extremely unpredictable or volatile periods in the market, it’s important to ensure your asset allocation remains comfortable and aligned with your risk. If you’ve experienced changes in your financial situation or outlook, you may need to rebalance to maintain a portfolio that can weather market fluctuations and keep you on track toward your objectives.

Re-Evaluate Your Financial Goals

Financial goals are not set in stone. They should evolve as your life circumstances change. Take some time this month to reassess your short-term and long-term goals:

  • Emergency Fund
  • Debt Repayment
  • Retirement Savings

Prepare for Open-Enrollment Season

Insurance is a critical component of financial planning. August is a good time to review your coverage. With open enrollment season around the corner, make sure you are maximizing the benefits available to you within the workplace as well as outside coverage.

Tax Planning 

It’s never too early to start thinking about taxes. A little planning now can prevent a big headache later:

  • Review Withholdings: Make sure you’re withholding the right amount from your paycheck. If you received a large refund last year, you might want to adjust your withholdings to keep more money in your pocket throughout the year.
  • Estimated Taxes: If you’re self-employed or have other sources of income that aren’t subject to withholding, make sure you’re on track with your estimated tax payments.
  • Charitable Donations: If you plan to make charitable donations, consider doing so now to take advantage of the tax deduction.

Update your Financial Documents 

Keeping your financial documents up to date is essential. Take time in August to:

  • Update Beneficiaries: Review and update the beneficiaries on your insurance policies, retirement accounts, and any other financial accounts.
  • Review Your Will: If you have a will or estate planning documents, make sure it reflects your current wishes. If you don’t have one, consider creating one to ensure your assets are distributed according to your wishes.
  • Organize Important Documents: Gather and organize important financial documents, such as tax returns, insurance policies, and investment statements.

Taking the time to review your finances in August can set you up for a more secure and organized second half of the year. By checking in on some of the items listed above, you can make sure your budget is on track, your goals are aligned with your current situation, and you’re prepared for any upcoming expenses.

A little financial housekeeping now can make a big difference in your financial well-being for the rest of the year. If you have any questions about how to maximize your financial situation or on reviewing your portfolio, email info@shermanwealth.com or schedule a complimentary intro call here.