July Financial Check-In: How to Review Your Finances For the Second Half of the Year
It’s hard to believe July is already over. With half the year behind us, now is one of the best opportunities to step back and evaluate your financial progress before the busy fall season begins. A mid-year financial review doesn’t have to be complicated, but taking an hour to assess where you stand can help you identify small adjustments that may have a meaningful impact by year-end. Whether your goals include saving for a home, paying down debt, investing more, or simply improving your cash flow, July is the perfect time to make sure you’re still moving in the right direction.
Start by reviewing your spending over the past several months. Compare your actual expenses to the budget you created at the beginning of the year and look for trends rather than isolated purchases. Have dining out, travel, subscriptions, or shopping become larger portions of your monthly spending? At the same time, review your savings accounts to ensure you’re maintaining an adequate emergency fund while also making progress toward short-term goals like vacations, home improvements, or a future home purchase. If you’ve consistently spent less than expected, consider directing those extra dollars toward savings or investments rather than allowing lifestyle inflation to quietly take over.
Next, evaluate your investment and retirement savings. Check that you’re on pace to meet your annual contribution goals for your 401(k), IRA, HSA, or 529 plan. If you’ve received a raise, bonus, or promotion earlier this year, consider increasing your retirement contribution percentage before you become accustomed to the higher take-home pay. While reviewing your portfolio, avoid the temptation to make changes based solely on recent market headlines. Instead, confirm that your investment allocation still aligns with your long-term goals and risk tolerance. Mid-year is also a good reminder to rebalance your portfolio if certain asset classes have drifted significantly from your target allocation.
July is also a good time to revisit the parts of your financial plan that aren’t investment-related. If you’ve experienced a major life event this year, such as getting married, welcoming a child, changing jobs, purchasing a home, or receiving an inheritance, review your insurance coverage, beneficiary designations, estate planning documents, and tax withholding to ensure everything still reflects your current situation. Even if nothing significant has changed, a quick review can help prevent overlooked administrative issues that become much more difficult to address later.
Finally, spend a few minutes revisiting the financial goals you set back in January. Celebrate the progress you’ve made, identify any goals that need additional attention, and establish one or two priorities for the remainder of the year. Financial planning isn’t about being perfect, rather it’s about consistently making thoughtful decisions that move you closer to your short- and long-term goals. By taking time now to review your finances, you’ll head into the second half of the year with greater confidence and a plan for finishing 2026 strong.
If you’d like help reviewing your financial plan or discussing whether you’re on track to meet your goals, we’d be happy to help. Email info@shermanwealth.com with any questions or feel free to book a complimentary intro call here.