Midyear check-in: How to stay on track for financial success

by Gina Coletti

As the year reaches its halfway point, it’s the perfect time to pause and conduct a midyear financial check-in. While many people set budgets and financial goals in January, life can change quickly, and your financial situation may look very different by mid-summer. A midyear review allows you to assess your progress, make necessary adjustments, and ensure you’re on track to meet your goals by year-end.

Why a midyear financial check matters

It’s easy to lose sight of your financial objectives as the months go by, and unexpected expenses, changes in income, or shifting priorities can all impact your original plan. A midyear check-in serves as a “gut check,” providing a clear picture of your actual spending and savings compared to your goals and projections. This process helps you avoid surprises and empowers you to make informed decisions for the rest of the year.

Schedule regular check-ins

To make the process easier, set a recurring calendar reminder for your midyear financial review. If you share finances with a partner, schedule a dedicated time to sit down together and go through your budget, spending, and savings. Regular check-ins (at least twice a year) help keep you accountable and ensure you’re always moving toward your financial goals.

Work out your current net worth

Understanding your net worth—all your assets minus all your debt—is one of the most effective ways to get a clear picture of your overall financial health. Midway through the year is a great time to update your net worth statement. Begin by listing your assets, including checking and savings accounts, retirement and investment accounts, property, and any other valuables. Then subtract your liabilities, such as credit card balances, outstanding loans, and mortgage payments.

Tracking this number year over year can reveal whether you’re building wealth steadily or accumulating debt and help you spot trends that might otherwise go unnoticed. If your net worth has grown, celebrate that progress. If it’s stagnant or declining, now is the time to investigate why and make adjustments before the end of the year.

Compare your budget to actual spending

Start by reviewing your budget. Look at your budgets and bank statements to see what you planned to spend versus what you’ve actually spent so far. Pay special attention to major categories like credit card spending, vacation and travel expenses, and other upcoming large expenses.

For example, you may have allocated 10% of your annual income to vacations, but by June, you might discover you’ve already spent 20%, with another trip still on the horizon. Identifying these discrepancies now gives you time to adjust your plans and avoid overspending.

Revisit your financial goals

A lot can change in six months. Your midyear check-in is a good time to account for any major life changes (job change, new family member, additional income streams, etc.) and assess whether your financial goals or priorities have shifted. If you don’t have clearly defined financial goals yet, now is the perfect time to set them. Having both short-term and long-term goals is crucial for building a solid financial plan. Short-term goals could include paying off credit card debt or building your emergency fund, while long-term goals might focus on retirement savings or purchasing a home.

Goal-setting provides clarity, motivation, and direction for your financial journey. It gives you something concrete to strive toward, helping you stay disciplined and make smarter decisions. As life evolves, your goals may need to be adjusted.

Evaluate your savings progress

Savings should be a cornerstone of your financial plan. If you’re not saving enough, it’s time to cut down on unnecessary expenses and start focusing on your future.

During your midyear check-in, assess how much you’ve saved so far and project how much you can and want to save in the remaining months. For most individuals, especially those planning for their own retirement, aiming to save 20-30% of their income is a solid target. With traditional pensions becoming increasingly rare, building your own retirement fund is more important than ever.

Consider tax planning

While tax season is typically top-of-mind in April, you can stay one step ahead by monitoring your tax situation throughout the year. After filing your return, it’s a good time to evaluate whether your withholdings were accurate, especially if you owed a large balance or received a significant refund. Adjusting your W-4 or estimated tax payments now can help smooth cash flow and prevent surprises next April. If you or your accountant noticed that your charitable contributions or other deductions didn’t result in a tax benefit—perhaps because they fell below the standard deduction threshold or could have been timed more strategically—this is a great time to review and adjust. Planning ahead can help you take full advantage of available deductions and help manage your future tax liability.

Take control of your financial future

A midyear financial check-in is more than just a review; it’s an opportunity to take control of your financial future. Without regular check-ins, it’s easy to lose sight of your goals or get caught off guard by unexpected financial challenges.

Partnering with the experienced professionals at Nixon Peabody Trust Company can provide the insight and structure you need to make the most of your midyear review. Our team can help you evaluate your progress, identify potential risks, and make proactive adjustments to keep you on track. By staying informed and focused, you can finish the year strong and make smarter financial decisions that set you up for long-term success.

Gina Coletti
Chief Fiduciary Officer
+1 617.345.1110
gcoletti@nixonpeabody.com