When you buy through links on our articles, Future and its syndication partners may earn a commission.
Believe it or not, the year is already halfway over. While you may currently be swept up in summer barbecues and beach vacations, the year's midway point is also a great time to check in on those financial goals you set for yourself at the start of the new year.
Maybe checking in will give you a reason to pat yourself on the back for all the hard work you have done so far on your finances. But don't worry if that is not quite the case — you still have half the year to go to make up for lost time.
Why is it worth doing?
"Regular attention to your personal finances is crucial in following your budget and saving money for emergencies, retirement and other life goals," said Bankrate, and "the middle of the year is a good time to take stock of how things are going."
If you set financial goals for yourself but then do not routinely check back in, you will not know whether or not you're actually moving in the right direction. Maybe you will realize that you have sailed past a goal you thought would take the full year to hit — in which case, you could consider upping the ante. Or maybe, you will notice you have veered off track or barely inched forward, which may prompt you to reevaluate how realistic the goal really was in the first place or decide to shift your habits for the remainder of the year.
What should you review?
So, what exactly should you look over in your midyear check-in? Here are some areas to inspect:
Your budget: Your midyear review is a great chance to "make sure you're staying on track with your saving, spending and income goals," said Equifax. To get a sense of your spending habits, "start by reviewing your credit card and bank statements," dividing your spending "into categories such as rent, utilities, food, health and entertainment."
Do not hesitate to make adjustments as necessary, especially if you "identify areas where you're spending more or less than expected," said Bankrate. If you find you are overspending in certain areas, consider "whether to allocate more money to them or find ways to cut your spending." Also look at any debt you have and consider whether you can work more room into your budget to expedite paying that down.
Your emergency fund: As you review your budget, also take a look at your savings habits. "Ideally, you should have three to six months of living expenses saved in an emergency fund," so "if you dipped into that account to pay for car or home repairs or another unexpected expense, now is the time to figure out how you can turbocharge your savings — or at least get back to a regular savings strategy," said CNBC.