As we reach the midpoint of the year, June offers a perfect opportunity to take stock of your financial situation. It’s a time to reflect on the progress you’ve made and adjust your strategies to ensure you stay on track with your financial goals. Here’s a comprehensive checklist to help you conduct a thorough mid-year financial review:
A good place to start when reviewing your finances is to take a look at your budget and expenses. Compare your actual spending against your budget for the first half of the year and identify areas where you overspent or underspent. Consider how your budget may shift from the winter/spring months into the summer months and adjust your budget categories as needed to reflect any changes in your lifestyle or financial priorities. Next, start to analyze your expenses. Look for patterns in your spending and identify any recurring expenses that can be reduced or eliminated. Consider using budgeting apps or tools to streamline this process and help identify blind spots.
An important mid-year financial exercise we like to work on with our clients is reviewing your financial goals. In the beginning of the year, you may have set some financial resolutions for 2024 or financial goals, for example, saving for a vacation, paying off debt, building an emergency fund. Think about this as a progress check- benchmark your goals and adjust timelines and strategies if necessary to stay on track. Also, it’s important to think about new goals as your life is constantly evolving. If you’ve achieved any of your initial goals, set new ones to keep moving forward. Consider long-term goals like retirement planning or saving for a significant purchase.
Next, taking stock of your savings balances and savings contribution rates is an important piece of your mid-year review. Ask yourself, “Do I have enough in my Emergency Fund?”. If the answer is no, it may be time to recreate a savings plan to build it up. Review your savings accounts and their interest rates. Consider if you need to open new accounts for specific goals or move your money to accounts with better interest rates. Prepare for upcoming expenses by anticipating major expenses in the second half of the year, such as holidays, vacations, or tuition. Start setting aside money now to avoid financial stress later. Build a financial buffer for unexpected expenses that may arise.
An important summer financial checklist item is revisiting your protection. It might be time to do an insurance needs analysis and estate planning review. Update your insurance coverage by reviewing your insurance policies, including health, life, auto, and home insurance. Ensure you have adequate coverage and that your policies are up-to-date as well as update your estate plan to ensure proper protection.
Taking the time to review and adjust your financial plan in June can set you up for success in the second half of the year. By working with a financial professional to constantly tweak your financial plan or work through some of the items on this checklist, you’ll better understand how to achieve your financial goals and maintain a healthy financial outlook. Remember, regular financial check-ups are key to long-term financial stability and success. If you have any further questions on the financial checklist items mentioned, email info@shermanwealth.com or schedule a complimentary intro call here.
