Mid-Year Financial Check-In: Are You on Track for Your 2025 Goals?

ByAshley Hours Categories Budgeting

As we reach the midpoint of 2025, it’s an opportune time to pause and assess your financial journey. Reflecting on your progress allows you to make necessary adjustments and ensure you’re aligned with your year-end objectives. Here’s a comprehensive guide to help you evaluate and realign your financial strategies for the remainder of the year.

At the start of the year, you likely set specific financial goals. Now is the time to evaluate your progress:

  • Savings Targets: Are you on track with your savings goals? If not, consider adjusting your monthly contributions or identifying areas to reduce expenses.
  • Debt Reduction: Assess your debt repayment plan. Have you been able to make consistent payments? If not, revisit your budget to allocate more funds toward debt reduction.
  • Portfolio Review: Review your investment portfolio to ensure it aligns with your risk tolerance and long-term objectives. Given the recent market fluctuations and volatility, it’s extremely important to understand your risk tolerance and ensure it is appropriate given your goals and time horizon.

Next, analyzing your spending habits over the past six months can provide valuable insights:

  • Track Expenses: Identify categories where you’ve overspent and areas where you can cut back.
  • Adjust for Upcoming Expenses: Anticipate expenses for the second half of the year, such as holidays or planned summer or winter vacations, and adjust your budget accordingly.
  • Emergency Fund: Ensure your emergency fund is adequately funded to cover unforeseen expenses.

In addition to benchmarking budgeting and savings progress, mid-year is an excellent time to implement tax-saving strategies, and use the tax return to plan for the back half of the year.

  • Retirement Contributions: Maximize contributions and review your paystub to check in on retirement contributions for the year.
  • Charitable Donations: Plan for potential charitable contributions to take advantage of potential deductions.
  • Tax Withholding: Review your tax withholding to avoid surprises during tax season, or if your income has changed.

Another important planning topic we are discussing this time of year is protection. Life changes can impact your insurance needs and estate planning:

  • Insurance Coverage: Evaluate your health, life, and property insurance policies (umbrella) to ensure they provide adequate coverage.
  • Estate Planning: Update your will, power of attorney, and beneficiary designations to reflect any recent life changes.

Lastly, don’t forget to check in with your advisor or financial professional. Regular or quarterly check-ins with your financial advisor can help keep your financial plan on track:

  • Goal Alignment: Ensure your financial goals remain aligned with your long-term objectives.
  • Accountability: Stay accountable and motivated to achieve your financial milestones.

Taking the time to conduct a mid-year financial check-in can significantly impact your ability to achieve your 2025 goals. By reassessing your objectives, adjusting your budget, optimizing tax strategies, reviewing insurance and estate plans, and consulting with your financial professional, you can position yourself for a successful back half of the year. For personalized guidance or to schedule a complimentary consultation, contact us at info@shermanwealth.com or book time here.