Mid-Year Adjustments to Ensure End-of-Year Success

A mid-year financial check-in will help you identify areas for improvement before reaching the year’s end.

If you’re like most people, you set goals for yourself in the New Year, and one more of them may have been financial in nature. If you feel like your resolutions have fallen by the wayside, you’re not alone. Luckily, the mid-year point offers a perfect time to assess your financial journey so far and make strategic adjustments to finish the year strong. Below, we’ll walk you through a mid-year financial check-in to help you set the stage for a prosperous year-end and beyond.

Mid-Year Financial Check-In Tip: Get Introspective About What You Want

A little introspection can go a long way toward clarifying your goals. Start by revisiting the financial goals and objectives you’ve already set. Are they still aligned with your current aspirations and lifestyle? Do they suit your needs, rather than what society (or social media) tells you to aim for? It’s natural for goals to evolve, and mid-year is an ideal time to ensure your financial plan reflects your updated priorities.

Mid-Year Financial Check-In Tip: Evaluate Your Budget

Often, people with high incomes believe budgets are for people living paycheck to paycheck. However, this couldn’t be further from the truth. To maximize your dollars, track your expenses and follow a monthly budget. Identify areas where you can cut unnecessary spending or reallocate funds toward your financial goals. The excess funds can be directed toward savings, investments, or debt reduction.

Mid-Year Financial Check-In Tip: Investment Portfolio Review

Your investment portfolio is a key component of your financial plan, and while you don’t want to be making changes to it too frequently, an annual review is essential. Conduct a thorough assessment of your portfolio’s performance, asset allocation, and level of risk, and think about where you can make changes to support stronger performance or stability. Consider the following points:

Asset Allocation: Ensure your portfolio’s asset allocation aligns with your risk tolerance and long-term goals. Rebalance your portfolio if needed to maintain a diversified and balanced approach.

Review Individual Investments: Assess the performance of individual investments. Are there holdings that consistently underperform or no longer fit your investment strategy? Consider divesting from underperforming assets now and investing more in funds that show promise.

Tax-Efficient Strategies: Explore tax-efficient strategies such as tax-loss harvesting, which can help reduce your capital gains tax liability.

Contribution Adjustments: Review your retirement account contributions and consider increasing them to maximize your savings. Your first goal should be to achieve a full match if your employer offers one. After that, work to max-out your contributions annually.

Mid-Year Financial Check-In Tip: Debt Management

If you have outstanding debts, it’s crucial to manage them effectively. Focus on paying off high-interest debts like credit card balances or personal loans. Reducing or eliminating these debts can free up additional funds for savings and investments.

Mid-Year Financial Check-In Tip: Emergency Fund

An adequate emergency fund is a financial safety net. Reassess your emergency fund’s size and make sure it can cover unexpected expenses. If it falls short, allocate more funds to your emergency savings.

Mid-Year Financial Check-In Tip: Insurance Review

Review your insurance coverage, including health, life, and property insurance. Ensure your policies provide adequate coverage for your current circumstances and make any necessary adjustments. This is also a good time to shop around and make sure you’re getting the best rates possible.

Mid-Year Financial Check-In Tip: Tax Planning

Explore tax-saving strategies as the year progresses. Consider tax deductions, tax-advantaged accounts, and retirement account contributions to reduce your overall tax liability. Even though tax season is many months away, it’s never too early to get proactive with your tax strategy.

Mid-Year Financial Check-In Tip: Revisit and Adjust

When you’ve taken pains to craft a financial plan, it’s tempting to “set and forget” the details. However, regularly revisiting your financial plan and making necessary adjustments is key to ensuring it remains aligned with your goals and circumstances. The mid-year point is a perfect time for such evaluations.

Mid-Year Financial Check-In Tip: Know the Landscape

If you don’t typically watch or read any financial news, now is a good time to start. Understanding the economic landscape can help you make informed decisions about your investments and overall financial strategy. Just be sure you’re following sources you can trust.

Mid-Year Financial Check-In Tip: Set S.M.A.R.T. Milestones

To give yourself direction, set new or updated financial goals for the second half of the year, and consider using the S.M.A.R.T. goal setting system. These milestones can serve as motivating targets to guide your financial decisions as you work towards your long-term objectives.

Mid-Year Financial Check-In Tip: Stay Consistent

This can be difficult but remember that consistency in financial planning is key to success. Mid-year adjustments are valuable, but the continued discipline in adhering to your financial plan will ultimately help you achieve your goals. When possible, set up automatic deposits and contributions into your accounts so you’ll never miss a month.

Are You Ready to Partner with a Trusted Advisor to Gain Confidence and Security?

The mid-year point is an excellent opportunity to assess your financial journey and make adjustments that lead to a prosperous year-end. By reflecting on your goals, managing your budget, and optimizing your investments, you can enhance your financial well-being and set the stage for a successful year ahead.

It’s also useful to work with an experienced financial advisor, and the Cash Financial team can help. We help our clients make every financial decision count, building personalized strategies that help them achieve their goals and gain peace of mind. Reach out today to schedule a one-on-one discussion to learn more about our services.

Schedule your 15-minute introduction call with Cash Financial and begin planning the retirement you deserve.

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