Mid-Year Financial Checkup: How to Reassess Your Budget, Goals, and Tax Strategy Before Summer

As the calendar flips into May, it's the perfect time for a mid-year financial checkup. With tax season in the rear-view mirror and summer on the horizon, reviewing your financial progress now can help you finish the year strong. Here’s how to evaluate your budget, reassess your financial goals, and make proactive tax moves while there’s still plenty of time left in the year.

1. Review Your Budget and Spending Habits

Start by comparing your actual spending to your planned budget for the first four months of the year.

Ask yourself:

• Are there categories where you’ve overspent or underspent?

• Did any unexpected expenses derail your savings goals?

• Are your fixed expenses still aligned with your income?

  
  

Action Step: Use a budgeting tool like YNAB, Mint, or even a spreadsheet to categorize your expenses and see where adjustments are needed. Then, update your budget to reflect any changes in income, bills, or lifestyle.

2. Check In On Your Financial Goals

Whether you're saving for a vacation, building an emergency fund, or paying down debt, now is the time to see how you're tracking.

Consider:

• Have you hit 50% of your savings goal, since we’re nearly halfway through the year?

• Are there goals that need to be revised due to life changes or market conditions?

  
  

Action Step: Rank your goals by priority and adjust contributions accordingly. Consider automating savings or debt payments to stay consistent.

3. Assess Your Tax Withholding and Contributions

Tax season may be over, but tax planning should be a year-round habit.

Things to look at:

• Did you owe money or receive a large refund? That’s a sign your withholding needs adjusting.

• Are you on track to max out retirement accounts like a 401(k) or IRA?

• Have you contributed to your HSA or FSA lately?

  
  

Action Step: Use the IRS tax withholding estimator or talk to a tax professional to make changes to your W-4. Also, review your contribution limits for retirement accounts and increase contributions if you’re behind.

4. Prepare for Summer Expenses

Summer often brings irregular expenses—vacations, camps for kids, weddings, and more.

Plan ahead by:

• Estimating your summer spending and setting aside funds now.

• Booking travel early to avoid price hikes.

• Considering a sinking fund specifically for seasonal spending.

  
  

Action Step: Create a summer-specific mini budget that anticipates both fun and practical costs.

5. Review Credit and Debt

Credit card balances can creep up in the first half of the year, especially after holiday debt or spring expenses.

Review:

• Your current credit score and any changes since January.

• Your debt-to-income ratio and progress on repayment.

  
  

Action Step: Consider a balance transfer or refinancing options if your interest rates are high, and review your credit report for errors (you can get one free at AnnualCreditReport.com).

6. Update Insurance and Emergency Plans

Life happens—make sure you're protected.

Review:

• Health, auto, home, and life insurance coverage.

• Your emergency fund balance (3-6 months of expenses is the general rule).

• Beneficiaries on accounts and insurance policies.

  
  

Action Step: Make any necessary updates to coverage or emergency contacts. Even minor life changes like a move or new job can require adjustments.

Final Thoughts

A mid-year financial checkup doesn’t have to be overwhelming. With a few hours of honest reflection and proactive planning, you can take back control and set yourself up for a strong financial finish to 2025.

What’s one financial change you plan to make this month? Drop it in the comments or share your own mid-year checkup process!

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through TOP Private Wealth, a registered investment advisor and separate entity from LPL Financial