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What Are The Four Items to Add to Your Financial Midyear Checklist?

In just six months, a lot can happen. It is sensible to review your financial situation as we finish the first half of the year.

“I think folks this year are more significantly hit by inflation than they probably have been in many years before to this,” says Jason Dall’Acqua, a certified financial planner and the founder of Crest Wealth Advisors in Annapolis, Maryland.

As a result, now is an excellent time to assess how things are going and make plans for the coming months.

You don’t have to add up each and every cent you earned and spent in the previous six months.

However, spending a few minutes checking a bank or budget software will help you comprehend your money better and make any necessary course corrections.

Even if you had a budget in January, it most likely isn’t the same as it is today because of inflation.

There are a few items that will need to be altered. Therefore, it really just involves starting over and assessing where you are now as opposed to where you anticipated you would be, according to Denver-based CFP Kayla Welte of District Capital Management.

If you’ve spent more than you intended, look for ways to cut back. You can cut back on eating out or revoke your subscription to services you seldom ever use, for instance.

To compensate for the higher price of the items you absolutely must buy, Welte advises cutting back on any unnecessary spending.

Check on any earlier-set financial resolutions or objectives you may have had for the year. Have you made the necessary savings for retirement or an emergency fund? Are you on schedule to pay off your debt?


Rising interest rates make it more expensive to carry debt. Debts with variable interest rates should be paid off more quickly to save money. Credit card debt, personal loans, and adjustable-rate mortgages are a few examples of these obligations.

Prioritize paying down your highest-rate debt before tackling your next-highest debt. Dall’Acqua advises if at all possible, refinancing to change from variable-rate to fixed-rate choices.

He advises, “If you can lock in the fixed rate now, you’re probably going to be saving yourself quite a bit in interest charges over time.”

Know when the forbearance on debts expires. For instance, federal student loan payments will start again on September 1 unless another extension is granted.

At this point, Dall’Acqua notes, “they have been on pause for almost two years.” Therefore, it would come as a major shock when they have to start paying again if that money has been lost in the total spending of the population.

Saving money in a separate savings account now can lessen the blow.

Gifts for the holidays may cost a little more this year due to inflation. Consider how much you can afford to spend while making a shopping list.

Determine how much money you would need to set aside every week or month and begin doing so right away, advises Dall’Acqua.

You can control the cost without going into debt by starting your shopping early. You’ll find savings well before Black Friday because many businesses hold large-scale events in the summer.

July will bring Amazon’s Prime Day. The anniversary sale at Nordstrom is also.

To determine if you’re withholding too much or too little tax, Welte advises using an online tax calculator.

By doing this, you might prevent receiving a hefty tax bill as a surprise or losing out on extra money that you might need right away.

If your calculations show that you will receive a $6,000 tax return, Welte advises changing your W-4s to put extra money in your pocket right away to cover rising expenses rather than waiting until next April to receive your refund.

If you need to make changes, complete a new Form W-4 and give it to your employer.

Examine your employee benefits options while you’re at it. Health insurance, life insurance, health savings accounts, flexible spending accounts, and extras like gym memberships can all be part of these benefits.

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According to Joe Bautista, a CFP in Lake Oswego, Oregon, reviewing your options in the summer might help you avoid feeling overwhelmed in October and November when open enrollment for most businesses starts.

Choosing the most affordable solutions that meet your demands is the main objective. As an illustration, “a PPO often offers lower deductibles and copays, higher premiums, and lower costs if you frequently use medical services.

However, if someone doesn’t use that health care, they may be overspending, according to Bautista.

Put off worrying about getting everything perfect at this time. Financial planning, in the words of Bautista, “is dynamic, it’s not static.” Periodically review and adjust your financial strategies.

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