Midyear financial planning: How to stay true to your money goals

Review spending habits and identify ways to cut back or reallocate dollars to match your goals.

Revisit savings, investment allocations, and tax-advantaged accounts to keep progress on track.

Life changes? Update your insurance coverage, estate plan, and cybersecurity protections.

Check your budget: Are you sticking to your spending plan? Our T. Rowe Price Budget Worksheet (PDF) can help you get organized and stay on track. Make sure to account for any price increases in essential expenses, such as groceries, utilities, and transportation.

Identify cost‑cutting opportunities: Midyear is a great time to reassess your spending. Cancel unused subscriptions and reduce discretionary spending. Whether it’s $50 or $1,000 per month, every dollar you can invest matters.

Review outstanding debt: Prioritize paying off high‑interest debt like credit cards. If you’re regularly running a balance on a credit card, consider ways to cut expenses.

Build up your emergency fund: Aim for three to six months of expenses saved in an accessible account. If your household has only one income, or your income is less predictable—such as with freelance or commission‑based work—you may want to set aside enough for more than six months.

Maximize retirement contributions: Increase your individual retirement account (IRA) and 401(k) contributions if you can—up to the annual contribution limits. Use this opportunity to review your progress and see if you are on track for your age using our retirement savings benchmarks.

Balance short‑term and long‑term savings: Assess your progress toward near‑term goals—such as vacations, home improvements, or a down payment—by checking your savings balances and monthly contributions. At the same time, make sure short‑term spending doesn’t come at the expense of long‑term goals such as retirement. If you’re behind on one priority, adjust your monthly contributions accordingly or look for areas in your budget where you can cut back to reallocate funds to the appropriate investments and accounts.

Not sure where to start or what to prioritize? Give us a call: Even a quick chat with a Financial Consultant can help you prioritize what you want to achieve, whether it's retirement or other big plans, giving you a clearer path to follow. Schedule a Financial Consultation.

Reassess your asset allocation: Asset allocation is a primary driver of your portfolio’s performance over time. You’ll want to ensure your mix is aligned with your time horizon, risk tolerance, and goals. T. Rowe Price's Portfolio Optimizer helps clients analyze and adjust their portfolio allocation to align with their investment goals, providing guidance and follow-up messages to encourage effective changes.

Check portfolio diversification: Avoid over‑concentration in any single asset class. You might have higher‑than‑expected exposure to a single company, sector, or geographic region—either within a fund or when there is overlap in the holdings of various funds. If your employer‑based retirement plan includes company stock, you might want to make sure it doesn’t make up more than 5% to 10% of your portfolio.

Rebalance if necessary: Adjust allocations to maintain your target mix. Consider investing in asset allocation funds, which provide a diversified portfolio in one investment. These all‑in‑one funds are overseen by experienced investment professionals and rebalanced regularly. You can also work with a financial advisor to help determine the right allocation for your goals and risk tolerance—and to make adjustments as your needs evolve.

Review withholding: Update your withholding if necessary to avoid underpayment (and surprise tax bills later), as well as overpayment.

Maximize tax‑advantaged accounts: Retirement accounts aren’t the only investment accounts that offer tax advantages. Consider contributing to Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), or 529 plans, each of which offers tax advantages that can add up over time.

Organize tax documents: Keep records of deductions, receipts, and other important financial paperwork.

Update insurance coverage: Ensure your policies for health, life, home, and auto are adequate.

Check beneficiaries: Review designations on retirement accounts and insurance policies, particularly if you recently have married or divorced, had children, or experienced other major life changes.

Update estate documents: Make necessary changes to wills, trusts, and powers of attorney. Our Family Records Worksheet (PDF) can help you stay organized.

Automate saving and investing: An automated approach helps take the emotion out of investing. The result is a disciplined saving process that reduces the chance that you’ll make impulsive changes.

Protect against fraud: Use strong passwords, monitor account activity, and stay alert to scams. If you become a victim of cybercrime, immediately file a report with the FBI’s Internet Crime Complaint Center.

Continue your financial education: The economy is ever evolving—markets go up and down, tax rules change, and shifting policies can impact everything from prices to employment. Stay informed by reading, listening to podcasts, and following financial news. Our Insights articles can help you learn more about financial topics that interest you.

Have you considered working with an advisor? Retirement Advisory Service provides personalized retirement planning with expert advisors tailoring strategies to individual goals and risk tolerance. Clients get continuous support in asset allocation, income planning, and tax-efficient strategies, providing them with confidence and informed decision-making.

Explore all the ways we can help you reach your retirement goals.

Contact a Financial Consultant at 1-800-401-1819.