Midyear Budget Checkup: Are You on Track?

Is your financial life going as planned?

Financial planning isn’t just for December and January. The middle of the year is a strategic moment to review your budget, assess the progress of your financial goals, and make necessary adjustments.

And for those living in the United States—with a dynamic economy, fluctuating interest rates, and variable costs—this kind of analysis becomes even more relevant.

The so-called midyear budget checkup is a common practice among finance professionals.

Why do a financial review midyear?

The first half of the year is often marked by extra expenses (like taxes, insurance renewals, the start of new contracts, etc.).

Unexpected costs can also arise: car or home repairs, medical emergencies, or a drop in income.

How are your goals coming along?

In December and January, many people make plans such as paying off debt, increasing savings, investing for retirement, or saving for a major purchase.

Reaching June or July without reviewing those goals can lead to frustration at the end of the year—or even harm your financial health.

Tips for your midyear financial checkup

Review your current situation

The first step is to honestly look back. Ask yourself questions like

• How much did I earn in the past six months?
• How much did I spend?
• How much did I save?
• How much did I invest?

Use bank statements, financial apps (like Mint, YNAB, or EveryDollar), and credit card reports. Look for discrepancies between what you planned and what actually happened.

Assess your financial goals

Revisit the goals or resolutions you set at the start of the year. Do they still make sense? Were they realistic?

Sort your goals into three categories:

• Completed
• In progress
• Not started or abandoned

For each goal not yet achieved, reflect on the reasons: lack of planning, shift in priorities, or unexpected events that demanded financial attention?

Understand that adjusting your goals isn’t failure—it’s being mature and flexible with your path.

Reorganize your budget categories

Spending habits shift throughout the year, like more travel and dining out in summer or different purchases in winter.

Other common midyear adjustments include:

• Increased electricity bills in summer due to air conditioning
• Back-to-school expenses in August
• Family events and holidays (like Labor Day) that require planning

Reviewing your budget means adapting it to seasonality and lifestyle changes—and a lot can change in six months.

Check your credit score.

In the U.S., your credit score is a key part of your financial health. It directly affects interest rates, credit approvals, loans, and even rental applications.

Use this review period to check your score for free, see if you have overdue payments, and assess if it’s worth renegotiating any interest rates.

Keeping a solid credit history is just as important as saving.

Update your emergency fund

How many months of fixed expenses do you have saved?

Experts recommend 3 to 6 months in a liquid account (like a high-yield savings account).

If you haven’t reached that amount yet, the midyear review is a great opportunity to redirect part of your income to this goal. Remember: your emergency fund is the foundation of financial stability.

Review your investments

Market volatility—especially with shifting interest rates, unstable inflation, and geopolitical tension—calls for extra attention.

Even if you’re investing passively (via index funds or 401(k) plans), it’s important to review your portfolio performance, reassess your risk profile, and confirm your asset allocation is still balanced.

If you’re unsure about your next steps, consider talking to a financial advisor.

Make a plan for the second half of the year

Based on what you’ve learned from the first six months, it’s time to create a solid plan for the next six. Ask yourself:

• What can I cut or reduce without hurting my quality of life?
• What goal do I want to reach by December?
• Do I need extra income?
• Am I ready for year-end expenses?

Reinforce your commitment to healthy habits

Budget reviews matter—but they’re useless without everyday discipline. Take this time to double down on good habits, like avoiding impulse buys, planning meals, and automating transfers and payments.

Written by

Gabriel Gonçalves