Midyear Financial Checkup Guidelines

A midyear financial checkup is an opportunity to assess your financial health, review your progress toward financial goals, and make necessary adjustments to stay on track. Here’s everything you need to know to conduct a thorough midyear financial checkup:

Budget Review:

1. Examine your income and expenses over the past six months.
2. Identify any areas where you’ve overspent or underspent.
3. Adjust your budget if necessary to align with your financial goals.

Savings Assessment:

1. Check the status of your emergency fund and other savings accounts.
2. Ensure you’re consistently contributing to your savings goals.
3. Aim to have three to six months’ worth of living expenses in your emergency fund.

Debt Evaluation:

1. Review your outstanding debts, such as credit cards, loans, and mortgages.
2. Check if you’re on track with debt repayment or if you need to adjust your strategy.

Investment Portfolio Analysis:

1. Evaluate the performance of your investment portfolio.
2. Rebalance your portfolio if necessary to maintain your desired asset allocation.
3. Consider consulting with Matthew Jennings, JD, MBA, EA, RFC®, CEP®, CES™, aka Tax King Matt for personalized advice.

Retirement Savings Check:

1. Review your contributions to retirement accounts like 401(k)s or IRAs.
2. Maximize contributions to take advantage of tax benefits and employer matches.

Insurance Coverage Update:

1. Assess your insurance policies (health, life, home, auto, etc.).
2. Ensure coverage is adequate for your current needs and life circumstances.

Tax Planning:

1. Evaluate your tax situation for potential adjustments or deductions.
2. Take advantage of tax-advantaged accounts and contributions.

Financial Goals Reassessment:

1. Review your financial goals and milestones for the year.
2. Adjust goals if necessary, based on changes in your life or financial situation.

Major Expense Planning:

1. Anticipate significant expenses for the rest of the year (e.g., vacations, home repairs).
2. Create a savings plan to cover these expenses without disrupting your budget.

Credit Report Check:

1. Obtain your credit report and check for errors or inaccuracies.
2. Work on improving your credit score if needed.

Estate Planning Update:

1. Review your will, trust, and beneficiaries.
2. Ensure your estate plan reflects your current wishes and circumstances.

Automate and Simplify:

1. Automate bill payments and savings contributions to stay consistent.
2. Consolidate financial accounts to streamline management.

Educate Yourself:

1. Stay informed about personal finance topics and investment options.
2. Knowledge empowers you to make better financial decisions.

Practice Discipline and Self-Control:

1. Avoid impulsive purchases and stick to your financial plan.
2. Stay focused on your long-term goals.

Celebrate Progress:

1. Acknowledge your achievements and milestones throughout the year.
2. Celebrating progress can boost motivation and financial confidence.

A midyear financial checkup is a proactive approach to managing your finances, helping you stay in control and make necessary adjustments to achieve your financial objectives. By following these guidelines, you can ensure your financial well-being and work towards a more secure financial future.