Tips for an Effective Mid-Year Financial Check-Up
Sitting down to review the past six months’ worth of activity can do wonders for achieving your financial goals by year-end.

Call it a financial checkpoint or a mid-year review: July is a great time to slow down and take a look at your to-date financial progress. How are you tracking against those goals set in early January? Is there an opportunity to save more money, contribute to a cause, and/or minimize your 2015 tax obligation?
Surprisingly, this mid-year financial check-up is often overlooked. Yet, reviewing the past six months’ worth of activity can do wonders for achieving your financial goals by year-end.
If unsure what to look for, start by examining the financial goals set earlier in the year, and focusing on each major aspect of your financial plan. Below are a few tips to help streamline the process and ensure all bases are covered:

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Review To-date 401(k) Contributions. As you may recall from your initial financial planning, the 2015 401(k) contributions increased to $18,000 this year ($24,000 for those over 50). Take a look at your to-date numbers to ensure you are on track to maximize those contributions. In addition to helping increase your account balance, maxing out those contributions can also reduce your taxable income. Win/Win.
Boost Your Savings. With less than six months to go, it’s a good idea to review your current savings and consider boosting your recurring contribution, even if it’s a small amount. And, while summer can be a drain on your finances—trips, kids out of school, additional entertainment—challenge yourself to spend less and save more. It could be as simple as one less cup of coffee per day, or opting for a home-cooked meal instead of an expensive dinner out.
Cut More Fees. You may have examined all of the pesky credit card and bank fees earlier in the year. Note that banks are often changing their rules and you might be surprised to learn you are now paying a fee for something you previously received for free. And every fee you pay means less money in your pocket. See how many fees you can reduce or remove before the end of the year. Consider re-investing the dollars saved into a savings or retirement account to really maximize those returns.
Taxes Already? Yes, we aren’t quite ready to talk about taxes yet. But just because we’re not talking about them, doesn’t mean you shouldn’t be putting yourself in the best position for when the time comes. If you aren’t already doing so, get in touch with your CPA and discuss your tax estimate. There’s still plenty of time left in the year to mitigate tax consequences, enabling you to have a healthier bottom line in 2016.
Charitable Contributions. And speaking of taxes, a great way to minimize your tax expense and contribute to your favorite cause is charitable giving. In fact, the largest source of charitable giving came from individuals in 2014, with Americans giving a total of $358 billion to charity in the year, up 7.1 percent from 2013 (according to National Philanthropic Trust). You may even consider checking with your company about a matching program.
Get to Know Your Investments Again. While I am a big proponent of letting investments be, now may be a good time to take a close look at your investment portfolio. Many financial advisors encourage clients to assess their risk tolerance before making changes to their investments. While this is an important factor, I would challenge you to determine your capacity for risk. In other words, find out how much risk you NEED to take to reach your financial goals. You might find out that although you can tolerate a high amount of risk, you don’t need to take it.
And remember—even if you’re not 100 percent on track today, there’s still plenty of time to focus your energy on accomplishing those financial goals. Start now, and you may be just be surprised at how smaller actions can lead to greater rewards.
Taylor Schulte, CFP® is founder and CEO of Define Financial, a San Diego-based fee-only firm. He is passionate about helping clients accumulate wealth and plan for retirement.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Taylor Schulte, CFP®, is founder and CEO of Define Financial, a fee-only wealth management firm in San Diego. In addition, Schulte hosts The Stay Wealthy Retirement Podcast, teaching people how to reduce taxes, invest smarter, and make work optional. He has been recognized as a top 40 Under 40 adviser by InvestmentNews and one of the top 100 most influential advisers by Investopedia.
-
Stock Market Today: Have We Seen the Bottom for Stocks?
Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
By David Dittman
-
Is the GOP Secretly Planning to Raise Taxes on the Rich?
Tax Reform As high-stakes tax reform talks resume on Capitol Hill, questions are swirling about what Republicans and President Trump will do.
By Kelley R. Taylor
-
Social Security Is Taxable, But There Are Workarounds
If you're strategic about your retirement account withdrawals, you can potentially minimize the taxes you'll pay on your Social Security benefits.
By Todd Talbot, CFP®, NSSA, CTS™
-
Serious Medical Diagnosis? Four Financial Steps to Take
A serious medical diagnosis calls for updates of your financial, health care and estate plans as well as open conversations with those who'll fulfill your wishes.
By Thomas C. West, CLU®, ChFC®, AIF®
-
To Stay on Track for Retirement, Consider Doing This
Writing down your retirement and income plan in an investment policy statement can help you resist letting a bear market upend your retirement.
By Matt Green, Investment Adviser Representative
-
How to Make Changing Interest Rates Work for Your Retirement
Higher (or lower) rates can be painful in some ways and helpful in others. The key is being prepared to take advantage of the situation.
By Phil Cooper
-
Within Five Years of Retirement? Five Things to Do Now
If you're retiring in the next five years, your to-do list should contain some financial planning and, according to current retirees, a few life goals, too.
By Evan T. Beach, CFP®, AWMA®
-
The Home Stretch: Seven Essential Steps for Pre-Retirees
The decade before retirement is the home stretch in the race to quit work — but there are crucial financial decisions to make before you reach the finish line.
By Mike Dullaghan, AIF®
-
Three Options for Retirees With Concentrated Stock Positions
If a significant chunk of your portfolio is tied up in a single stock, you'll need to make sure it won't disrupt your retirement and legacy goals. Here's how.
By Evan T. Beach, CFP®, AWMA®
-
Four Reasons It May Be Time to Shop for New Insurance
You may be unhappy with your insurance for any number of reasons, so once you've decided to shop, what is appropriate (or inappropriate) timing?
By Karl Susman, CPCU, LUTCF, CIC, CSFP, CFS, CPIA, AAI-M, PLCS