Mid-Year Financial Check-Up: Are You On Track for 2025?
As summer winds down and the second half of the year kicks into gear, August is the perfect time to take a pause and review your finances. A mid-year check-up can help you course-correct before year-end and ensure you’re on track to meet your 2025 goals.
1. Review Your Cash Flow and Budget
Track income and spending: Compare what you planned at the start of the year to your actual numbers.
Adjust for lifestyle changes: Vacations, back-to-school costs, or unexpected expenses can throw off your plan.
Reassess your emergency fund: Aim for 3–6 months of expenses in a liquid account.
Tip: Use this time to automate savings and bill payments to simplify the rest of the year.
2. Check Retirement Contributions
Maximize tax-advantaged accounts: Are you on pace to hit your 401(k) or IRA contribution targets?
Adjust for raises: If you received a pay increase, bump up your retirement savings percentage.
Revisit your asset allocation: Ensure your portfolio still matches your risk tolerance and time horizon.
Tip: Even small adjustments now can have a big impact over the next 5–10 years.
3. Evaluate Tax Strategies
Project your 2025 tax liability: Use current income to estimate and avoid surprises in April.
Harvest tax losses or gains: Depending on market performance, you may have opportunities to rebalance in a tax-efficient way.
Review withholdings: Adjust W-4s or estimated tax payments to prevent overpaying or underpaying.
Tip: Proactive tax planning mid-year often saves more than waiting until December.
4. Update Insurance Coverage
Life and disability insurance: Has your income, family size, or debt load changed?
Home and auto policies: Rising replacement costs and inflation mean your coverage may need adjusting.
Health insurance: Start preparing for fall open enrollment.
Tip: Your insurance should evolve with your life—not stay static year after year.
5. Revisit Your Goals
Short-term: Are you on track to fund vacations, home projects, or debt payoff goals?
Long-term: Does your retirement or college savings plan need recalibrating based on the market or life changes?
Legacy planning: Make sure wills, trusts, and beneficiaries reflect your current wishes.
Tip: Write down your progress—it creates accountability and motivation to finish the year strong.
Final Thoughts
A mid-year review doesn’t have to be complicated, but it can make a major difference in achieving your financial goals. By addressing cash flow, retirement savings, taxes, insurance, and life goals now, you’ll be setting yourself up for a smoother—and more successful—year-end.
If you’d like personalized guidance on your 2025 financial plan, schedule a mid-year review with our team. We can help you evaluate where you are, identify gaps, and make adjustments to stay on track.
Any discussion of taxes is for general information purposes only, does not purport to be complete or cover every situation, and should not be construed as legal, tax or accounting advice. Clients should confer with their qualified legal, tax and accounting advisors as appropriate. CRN202808-9200456.