Midyear Financial Checkup: Stay on Track for Your Goals
During periods of economic duress, like the one we’re experiencing now, midyear is an excellent opportunity to review goals and strategies. Taking a step back allows you to make any necessary adjustments to stay on track toward your long-term goals. Many people focus so much on current economic realities that they neglect their personal financial situation. A midyear financial checkup, alongside a year-end evaluation, can alleviate stress and help you get closer to your ambitions.
Three Steps to Keep Your Finances on Track
1. Review Your Goals
Long-term financial goals can easily fade into the background, but midyear is a great time to revisit them. Ask yourself:
- What are your most important financial goals?
- Have your goals changed, or have you reprioritized them?
- Have you updated the costs to achieve them?
- Where are you financially in relation to your goals? Are you on track?
- Has anything new, like unexpected expenses, affected your timeline?
2. Review Your Financials
As business owners review their operations at midyear, you should review your personal financials, including your financial statement and budget.
Financial Statement:
- Have your assets and liabilities improved?
- Are you where you expected to be halfway through the year?
- Are you increasing liabilities, like credit card debt?
- Should you rebalance your portfolio after significant losses?
- Should you consider tax-loss harvesting to offset capital gains?
- Does your investment portfolio reflect your current risk profile?
Discuss these questions with your financial advisor during your next meeting.
Budget:
- Are you on track with your spending plan?
- Are there new life expenses to incorporate?
- Are you spending or saving more than expected?
- How will this impact your cash flow for the rest of the year?
- What adjustments can help you meet your annual savings goal?
- Can you find savings to increase retirement plan contributions?
3. Review Your Tax Situation
While you may not want to spend more time on taxes after filing, midyear is the perfect time to ensure you’re taking full advantage of available options and staying on track with estimated tax payments. Consider:
- Have you adjusted withholdings based on your recent tax filing?
- Do you expect taxes to increase or decrease based on projected year-end earnings?
- Will there be changes to exemptions, like a new child or a child aging out?
Meet with your accountant to identify opportunities for reducing taxes and avoiding underpayment penalties before year-end.
Checking in on your finances midyear allows you to minimize necessary adjustments and reduce stress. It’s a small step with significant potential to keep your long-term goals within reach.
Alpine Bank offers tools for financial success. Click here to explore how our Liberty Checking account can meet your banking needs.
About This Author
Alpine Bank Staff
Alpine Bank is an independent, employee-owned organization with headquarters in Glenwood Springs and banking offices across Colorado’s Western Slope, mountains and Front Range.
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