Conducting a Mid-Year Financial Health Checkup

As we find ourselves midway through the year, it’s a great moment to take stock of our financial journey so far and recalibrate for the months ahead. This is the time when many of us pause to review our progress, tweak our plans, and realign our aspirations to ensure a successful year’s end. Take a moment to acknowledge your achievements thus far, rectify any missteps, and embark on the latter half of the year with renewed vigor and optimism. Just as you prioritize your well-being with a mid-year health assessment, your financial health deserves equal attention. Here are some key points to consider:

Review checking and retirement accounts. Start your mid-year financial health checkup by reviewing the balances and performance of your checking and retirement accounts, comparing them to your goals and noting where your benchmark compares. Evaluate fees, update beneficiaries, and consider adjusting contributions to maximize benefits. Rebalance investments if needed to maintain your desired risk level. This assessment helps ensure your finances stay on track for the remainder of the year.

Assess savings milestones and goals. Neglecting financial goals can lead to challenges down the road. That’s why it’s vital to regularly review your account balances and keep your financial objectives in focus. If you’ve fallen behind on your goals in recent months, take the opportunity to recalibrate your budget and ramp up your efforts for the remainder of the year. If you’ve been successful with your saving, don’t forget to celebrate that, noting how this will create a brighter financial future and forging ahead with the same determination. This also includes building up your emergency savings to 3 – 6 months of essential living expenses for added security. By staying proactive, you ensure that your financial aspirations stay top of mind and are pursued diligently.

Examine budget and spending. Frequent spending on daily indulgences like coffee, snacks or small treats may appear insignificant individually but can create substantial expenses over time. It’s important to conduct regular reviews of your financial statements and transactions to pinpoint and address any unnecessary spending habits. Learning to recognize the triggers behind your impulsive purchases — such as stress, boredom or sadness — enables you to exercise greater control over your spending. Through conscientious spending habits and a deeper understanding of your financial patterns, you empower yourself to make smarter financial choices.

Clarify debt balances and make a payoff plan. Conducting a debt review is essential in gaining a complete view of your financial landscape. This includes assessing all outstanding balances, exploring opportunities for refinancing to secure lower interest rates, and devising a structured repayment strategy. Adjusting your budget to incorporate debt repayment and identifying areas where expenses can be trimmed to allocate more funds toward debt are essential steps in this process. Prioritizing repayment, particularly toward higher-interest obligations or those with lower balances, helps set an effective repayment plan. Additionally, it’s advisable to review your credit reports from the three major bureaus to verify the accuracy of listed accounts and balances. By taking these steps, you equip yourself with a clear comprehension of your financial commitments, empowering you to make strategic decisions for a more prosperous financial future.

By conducting a thorough mid-year financial health checkup, you arm yourself with the insights needed to navigate the rest of the year with confidence and financial security. This initiative-taking approach allows you to pinpoint areas for improvement, celebrate victories and make informed decisions to steer your financial journey in the right direction. Financial well-being is not a one-time assessment but an ongoing commitment to mindful management and strategic planning. By staying vigilant and proactive, you lay the foundation for a brighter financial future and greater peace of mind. So, take control of your financial well-being today and pave the way for success in the coming months and years.

Rachel Caballero is community development and public relations manager at TruWest® Credit Union. TruWest prioritizes lifelong quality financial services and community care. Upholding values like passion, ownership and trust, it embeds the “TruDifference” in every decision. Its mission is to provide trusted financial solutions and services so members can achieve their goals. With more than 93,000 members and more than $1.8 billion in assets, TruWest operates 11 financial service centers, eight in Phoenix and three in Austin.