If July had a motto, it could look something like this: "Still time to make this year awesome."
The fireworks are behind us, the kids are knee-deep in popsicles and pool time, and the second half of the year is staring us right in the face. That makes it the perfect time for a financial tuneup.
Just like you wouldn't head out on a summer road trip without checking the tires and topping off the oil, you shouldn't cruise into the second half of the year without taking a peek under the hood of your finances. This is your moment to assess what's working, what's sputtering and what needs a little jump-start.
1. Take Stock: What Went Well and What Didn't
Start your midyear tuneup with a little honest reflection. Did you hit some savings milestones? Knock out a credit-card balance? Maybe you stuck to your budget -- or maybe your budget stuck it to you. Either way, now's the time to celebrate the wins and learn from the losses.
A good financial plan isn't about being perfect; it's about being consistent and adaptable. Give yourself credit where it's due, and use the lessons learned to power forward. Let's face it, even a crooked path can get you to the right destination.
2. Check Your Portfolio's Alignment
When was the last time you looked at your investment portfolio? If your answer is "January," or worse, "What portfolio?" -- you're overdue. Market ups and downs, especially over a wild first half of the year like we've experienced, can throw your investment mix out of whack.
Read Next: How Stock Turbulence Has Affected Thrift Savings Accounts, and How You Can Strategize
Take some time to review your asset allocation and make sure it still lines up with your risk tolerance, approach with respect to taxes and long-term goals. Are you too heavy in stocks? Too concentrated in tech? Light on bonds or just drifting away from your ideal mix? Rebalancing doesn't have to be complicated, but it does have to be intentional.
And if you've recently hit a big milestone such as retirement, a permanent change of station (PCS) or a change in job or income, it's a good time to reassess not just your investments, but your overall financial plan.
3. Review Your Insurance Coverage
Review your policies now to make sure your family, property and financial life are properly protected.
Look at your:
- Auto insurance: Did your coverage keep up with any recent changes, such as adding a teenage driver or buying a new car? Do deductible levels still make sense?
- Homeowners or renters insurance: Are your belongings covered adequately? This is especially important if you've made upgrades or purchased expensive new items.
- Flood insurance: Many people assume it's included in their regular policy, but it usually isn't. And with climate unpredictability, even places that don't typically flood might be at risk.
- Life and disability insurance: Big life changes (PCS, a new baby, a spouse's job change) should trigger a review. Don't leave your loved ones vulnerable.
4. Make Adjustments and Finish Strong
Maybe you need to cut back on eating out. Maybe you've got room to increase your Thrift Savings Plan (TSP) contributions. Maybe it's time to finally set up that college fund or rework your debt payoff plan. Whatever the case, this is the perfect time to tweak and tune.
Financial success is more like a series of small, steady adjustments than a one-time overhaul. Don't wait for January to get things back on track. Use this natural halfway point as your cue.
Final Thoughts: Cruise Into December with Confidence
The second half of the year holds plenty of opportunity -- and, let's be honest, plenty of spending temptations. But a little attention now can help you finish 2025 in a stronger position than you started.
So before the holiday rush and end-of-year chaos roll in, give your finances that midyear once-over. Align your goals, rebalance your investments and protect what matters most. After all, it's not just your car that deserves a summer tuneup. Your future self will thank you for keeping things running smoothly.
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