So, how are your New Year's resolutions doing?
Every January, we set financial goals. We may plan to save more, pay down debt, increase retirement contributions, or stick to a budget.
But halfway through the year, things may not have unfolded exactly as planned. Priorities change, unexpected expenses arise, and financial goals can shift along the way.
That's one reason a midyear financial checkup can be so valuable.
The good news is that there's still plenty of time left to make progress. Whether your goals are on track or have evolved since January, a midyear financial checkup can help you evaluate your finances, revisit your priorities, and identify planning opportunities before year-end.
š Read our blog: Financial Resolutions for the New Year
Review Your Budget, Cash Flow, and Emergency Savings
The first half of the year often reveals spending patterns you didn't expect back in January. Maybe you've had a major home or car repair, faced higher insurance or healthcare costs, or found that everyday expenses cost more than you anticipated.
Now is a good time to review your income, spending, and savings to see whether they still reflect your priorities. You may find opportunities to cut back in some areas, increase your savings, or redirect money toward other financial goals.
While you're reviewing your finances, take a look at your emergency fund as well. If your emergency fund isn't where you'd like it to be, there's still time to make progress before year-end. Even small, automatic contributions over the next several months can gradually build your savings.
š Read our blog: Prepare for Life's Unexpected Surprises with an Emergency Fund
Review Your Tax Strategy and Retirement Contributions
The middle of the year is a good time to check in on both your tax situation and your retirement contributions.
If your income has changed because of a raise, bonus, job change, or another source of income, it may be worth reviewing your tax withholding. Making adjustments now may help reduce the likelihood of surprises when you file your tax return.
You should also review your retirement and health savings contributions. If your goal is to maximize contributions to your workplace retirement plan, IRA, or Health Savings Account (HSA), increasing your contributions now may be easier than waiting until the end of the year.
Even a small increase spread across your remaining pay periods can make a difference by year-end.
š Read our blog: 2026 Retirement Contribution Limits
Review Your Investment Portfolio
Market performance can gradually change the makeup of your investment portfolio.
For example, if one area of your portfolio has performed particularly well, it may now represent a larger percentage of your investments than you originally intended. That can change the overall level of risk in your portfolio.
A midyear review is a good opportunity to assess whether your current investment mix still aligns with your long-term goals, time horizon, and risk tolerance. Depending on your situation, it may make sense to rebalance your portfolio and bring it back in line with your investment strategy.
š Read our blog: What is Risk Tolerance?
Review Insurance Coverage and Beneficiary Designations
Major life events can affect more than your financial goals. They may also be a reason to review your insurance coverage and beneficiary designations.
Marriage, divorce, the birth of a child, purchasing a home, or a significant change in income are all good times to take another look at your life, disability, homeowners, and auto insurance coverage to determine whether it still reflects your current needs.
While you're reviewing your finances, check the beneficiary designations on your retirement accounts and life insurance policies as well. These designations generally take precedence over instructions in a will, making it important to keep them up to date after major life events. This may also be a good time to review any other estate planning documents and confirm that they still reflect your wishes.
A few minutes spent reviewing these details today may help prevent complications for your loved ones later.
š Read our blog: Updating Your Estate Plan After Divorce
Review Your Employee Benefits Before Open Enrollment
Even if your employer's open enrollment period doesn't begin until the fall, the middle of the year is a good time to review your workplace benefits and start thinking about any changes you may want to make.
Consider whether your current benefit elections still fit your needs. If you're contributing to a Flexible Spending Account (FSA) or Health Savings Account (HSA), you may want to revisit your contribution levels based on your anticipated healthcare expenses for the rest of the year.
You can also review whether you're taking full advantage of employer benefits, such as retirement plan matching contributions, employee stock purchase plans, or other workplace programs.
š Read our blog: Balancing Health and Wealth in Financial Planning
Review Your Debt Repayment Strategy and Credit Reports
If reducing debt was one of your financial goals this year, the middle of the year is a good time to check in on your progress.
Review your outstanding balances and interest rates to see whether your current repayment strategy still makes sense. If your financial situation has changed, you may decide to put extra money toward higher-interest debt or pay down a specific balance more quickly.
It's also a good time to review your credit reports. Checking your credit periodically can help you identify errors, monitor for signs of identity theft, and better understand the factors that affect your credit score.
Reviewing both your debt and your credit can help you identify opportunities to reduce debt, improve your credit profile, and prepare for future financial decisions.
š Read our blog: Are You Responsible for Your Spouse’s Debt?
Set One Financial Goal for the Rest of the Year
A midyear financial checkup may identify several areas you would like to address, but that doesn't mean you need to tackle everything at once.
Instead, you could choose one financial goal to focus on during the second half of the year. Depending on your situation, that might mean strengthening your emergency savings, paying down high-interest debt, increasing your retirement contributions, updating your insurance coverage, or reviewing your estate planning documents.
The second half of the year is still long enough to make meaningful progress. Focusing on one priority now may help you build momentum and finish the year closer to where you hoped to be back in January.
If you'd like to discuss your financial goals for the rest of the year, we're here to help. You can schedule a complimentary introductory meeting with our team in Glastonbury or Wilton, Connecticut, to review your financial plan before year-end.
Have a quick question instead? Send us a note.
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Michael Nicoletti is a CERTIFIED FINANCIAL PLANNER® professional and works with clients throughout Connecticut and nationwide, offering financial planning and wealth management services. Based in Glastonbury and Wilton, CT, Michael helps families and individuals plan for their financial, insurance, investment, and retirement goals. Schedule a complimentary introductory meeting with Michael.
This information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete, it is not a statement of all available data necessary for making an investment decision and it does not constitute a recommendation.
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Any opinions are those of the author, and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice.