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Believe it or not, it's already June, which means we're halfway through the year.

It’s also the perfect time for a mid-year financial check-in.

Now, I know what you're thinking. You're sitting there with your summer plans, your beach vacations, and your barbecues… the last thing you want to think about is your finances.

But let me tell you something crucial — this is the perfect time to hit pause, take stock, and get your financial house in order.

Why now, you ask?

Think about it like this: We all start the year off strong, energized by the freshness of our New Year’s resolutions. But by June, most of us have stopped prioritizing those goals or even forgotten them altogether.

A mid-year check-in is a great way to make sure you’re still on course and reenergize you to keep up the good work. And if you’ve let your good intentions fall by the wayside — no judgment, it happens to all of us — it’s a great time to get back on the horse and work on course correcting.

Come December, you'll be glad you did.

Not sure where to start? Have no fear; I’ve put together a step-by-step guide to walk you through seven major areas of personal finance, complete with questions to ask yourself and specific steps you can take today to set yourself up for success.

Because reviewing finances can be exhausting for anyone — even those of us who write about it for a living — I’ve split this guide into two parts. The first half focuses on the three big overarching areas that will give you an idea of how your financial goals align with your spending and saving, which will provide important information for the second half.

So, grab a notebook and a green accounting visor — it’s time to run some numbers!

1) Re-evaluate Your Financial Goals

The first thing you should do is grab your written list of goals. If you don’t already write down your goals, this is a great time to start. Research has shown that people who write down their goals are 42% more likely to achieve them than people who don't.

Want to make your goals even more achievable? Make sure they follow the SMART method; that means goals should be Specific, Measurable, Achievable, Relevant, and Time-bound. So, as an example, instead of writing "spend less money" as your goal, you could write "Starting July 1, I will limit my monthly spending on eating out and entertainment to $200 for the next six months."

This step is so crucial because it gives you clarity about what you want to achieve, creates a sense of accountability to yourself, and can also help you remember it better.

Once you have your list of goals, take a few minutes to reflect and assess.

Ask yourself why you set these goals in the first place; understanding the motivation behind your goals can help you determine if they're still important.

Next, look at your progress. To the best of your ability, try to specifically measure your progress. Are you on track to meet your goals? If you've made progress, celebrate it! If you haven't, don't be discouraged. Reassess your goals and adjust them if necessary. Remember, if anything needs tweaking, that's okay. Life changes, and so can our goals.

Actionable Steps

-Write down your goals in a place you’ll be able to revisit them
-Make sure each goal follows the SMART method
-Reflect on why you originally set your goal and whether it’s still important
-Assess progress using specific, quantifiable measurements
-Tweak (and rewrite) goals if necessary

2) Review Your Budget and Spending Habits

Now, let's talk budget. No one likes this part, but it's not about deprivation — it's about mindfulness. Revisit your spending habits over the past few months. Where is your money going? Are there areas where you can trim the fat without feeling the pinch?

The National Foundation for Credit Counseling (NFCC) suggests tracking your spending for at least 30 days. Write down every cent you spend and then categorize these expenses; you can also use a budgeting app to make this step easier. This exercise will help you identify wasteful spending and areas where you can cut back.

For instance, are you still paying for a gym membership you never use, or a streaming service you rarely watch? The answers may surprise you. It took four years for my husband and I to realize we were each still paying for an Amazon Prime membership. (I thought he had closed his, he thought I had closed mine, and we could have saved $500 if we had done a check-in sooner.)

Now that you have a detailed summary of how you spent your money in the first half of the year, you can make conscious decisions about how you spend your money moving forward.

Actionable Steps

-Either by hand or with an app, track spending over the past few months (or at least 30 days)
-Look at where you spent your money
-Identify and eliminate unused subscriptions and other easy places to cut
-Consider swapping costly habits for more cost-effective alternatives

3) Assess Your Savings

Next up, savings. Look at your savings-related goals and needs. Are you on track to meet them?

If you haven't already, go ahead and automate your savings so that a certain amount is moved from checking to savings every month. Most banking apps and websites make it easy to set up this feature.

Not sure how much or what you should be saving for? Here are some questions to focus your goals: Are you saving enough to cover short-term needs, like emergencies, and long-term goals, like buying a home or retiring comfortably? Are you withdrawing money from your savings too frequently? If you haven't made progress, set a six-month plan to boost your savings.

Even small, regular contributions can add up over time. For example, saving $200 per month starting at age 30 can amount to roughly $454,000 by the time you reach age 65, assuming a 7% annual return. If you received a bonus or raise, consider allocating that extra money to your savings. This will help you build your financial cushion without affecting your daily budget.

Actionable Steps

-Look at your savings-related goals; are you on track to meet them?
-Consider creating separate savings accounts for different goals, like vacations or emergencies
-Automate savings to ensure consistency
-Boost savings with bonuses or raises

And that’s the first half of our mid-year financial check-in!

As we wrap up this first half of your mid-year financial check-in, take a moment to appreciate the hard work you've done. By revisiting and refining your financial goals, you've set a clear direction for your financial journey. Understanding your spending habits and adjusting your budget ensures you're not wasting resources, and bolstering your savings sets a solid foundation for your financial security.

Having a firm grasp on your goals, spending, and savings is more than just a financial exercise — it should make you feel empowered, like you are in the driver's seat of your financial future.

With this comprehensive knowledge, you're now ideally positioned to tackle the second half of your mid-year financial review with confidence and clarity.

In the upcoming section, we'll dive into four more specific areas of personal finance: retirement contributions, emergency funds, debt management, and tax planning. These areas are crucial for long-term financial health and will help you solidify the progress you've made so far.

So stay tuned, stay focused, and get ready to continue this journey toward achieving your financial goals.