Your Mid-Year Financial Check-In: Cash Flow and Budget

As we flip the calendar to July, it’s hard to believe we’re already halfway through the year. The pace of life picks up, summer plans fill the calendar, and it’s easy to let financial intentions from January fade into the background. But July is the perfect time and opportunity to pause, reflect, and realign your finances with the second half of the year ahead.

The midpoint of the year is a natural checkpoint. With six months behind us and six more to go, now is the time to take a good, honest look at your cash flow and your budget. Are you spending in alignment with your values and goals? Are you making progress on the things that matter most to you? Where are you in relation to your yearly goals?

Start by revisiting your budget. Take a look at what you thought you would spend this year versus what you’ve actually spent. Life happens, and your January budget may no longer reflect your current situation. Maybe you’ve had a change in income, taken a big trip, started planning a wedding, or been hit with unexpected expenses. Whatever the case, now’s the time to rebuild your budget based on reality—not just what you put down on paper six months ago.

Next, examine your cash flow. If you’re consistently spending more than you’re earning, or if you’re cutting it close every month, something has to give. A quick three-month review of income versus expenses can reveal trends and highlight areas that need attention. On the other hand, if you’re in a surplus, be intentional with that extra cash—revisit your goals and decide where it should go.

This is also a good opportunity to audit recurring expenses. Subscriptions and memberships tend to accumulate without much thought, and those small monthly charges can really add up. Go through the last couple of months of statements and identify anything you’re no longer using or that doesn’t bring real value. Cancel or downgrade accordingly. It’s a small task that can make a big difference.

July is also a smart time to reassess your financial goals. Are you saving for something specific, like a home, a vacation, or a major life event? Are you still on track, or has your timeline shifted? If you’re ahead of schedule—keep going. If you’re behind, it’s better to adjust now than wait until the end of the year. Small changes to your monthly savings goals or spending habits can help you close the gap.

Another area that often gets overlooked is your investment strategy. Given quite the rollercoaster and extreme volatility we faced in Q2, this might be more prudent than before. Make sure your allocations still match your long-term risk tolerance and goals. Rebalancing may be in order, and if you’re unsure, this is a great point to check in with your advisor.

Taxes are another important factor. If your income has changed significantly this year, it may be wise to revisit your tax withholding or estimated tax payments. Doing a mid-year projection can help you avoid surprises next April and there is still enough time to make impactful changes before year end.

While not as exciting, don’t forget to review your insurance coverage and estate documents. Life moves fast—marriages, home purchases, and new family members can all shift your needs. Make sure your policies reflect your current situation, and double-check your listed beneficiaries and estate documents to ensure they’re up to date.

Finally, use July as a chance to simplify your financial life. That might mean consolidating old accounts, automating bill payments and transfers, or setting up a system to keep your digital finances organized. The goal is to make things easier going forward, not more complicated. In summary, July is your moment to regroup and refocus. You don’t need a total overhaul—just a clear sense of where you are and where you’re going. There’s still plenty of time to make meaningful progress before the end of the year, so let us help you get started! If you need help reviewing your cash flow, refining your goals, or making investment adjustments, we’re here to guide you through it. Schedule a call with our team here, or email us at info@shermanwealth.com.