Mid-Year Financial Checkup | Navigating Your Financial Fitness

As we reach the year's midpoint, it's the perfect time to pause and assess your financial health using the CPS Investment Advisors Financial Fitness Checklist. This mid-year checkup is crucial for staying on track with your financial goals and ensuring your long-term financial stability. Here's how you can effectively utilize the checklist to gauge your financial wellness and make necessary adjustments.

Step 1: Review Your Current Financial Status

Begin by taking stock of your current financial situation. Use the CPS Financial Fitness Checklist to reflect on various aspects of your financial life:

  • Budgeting: Ensure you have a clear understanding of your monthly spending and that you can comfortably cover all bills.
  • Savings: Check if you have an emergency fund that covers 3-6 months of living expenses.
  • Debt Management: Be aware of your total debt, the interest rates you're paying, and whether you're making headway in paying them off. Consider paying off higher-interest debt first.
  • Credit Health: Regularly review your credit report and strive to maintain a credit score above 700.
  • Investments and Retirement: Reevaluate your investment strategies and retirement planning to ensure they align with your long-term financial goals.
Step 2: Identify Areas for Improvement

Use your checklist results to identify weak spots in your financial health:

  • If you find areas with unchecked boxes, prioritize them. For example, if you haven't reviewed your insurance coverage recently, contact your fiduciary financial advisor to ensure it is adequate and up to date.
  • If your net worth hasn’t increased or if your credit score has dipped, consider revisiting your financial strategies and possibly consult a fiduciary financial advisor.
Step 3: Set Specific Mid-Year Financial Goals

Based on your checklist review, set clear, actionable goals for the second half of the year. For instance:

  • If you haven't set up an emergency fund, start by setting aside a small, feasible amount each month.
  • Plan to reduce debt by targeting higher-interest accounts first.
  • If your retirement planning isn’t on track, consider increasing your contributions or exploring new investment options.
Step 4: Implement Better Financial Habits

Develop habits that enhance your financial stability:

  • Regularly monitor your spending to avoid overspending and to stay within your budget.
  • Use apps or tools to keep track of your financial transactions and account balances.
  • Schedule semi-annual reviews of your financial plan to adjust as necessary, ensuring you stay aligned with your goals.
Step 5: Celebrate Achievements and Adjust Plans as Needed

Finally, recognize and celebrate your progress toward financial independence. You're likely on the right track if you score higher on the checklist than at the beginning of the year. However, always be prepared to adjust your plans based on life changes or financial shifts.

By conducting a thorough mid-year financial checkup using the CPS Financial Fitness Checklist, you can take control of your financial journey, making informed decisions that pave the way to financial freedom. Remember, the goal of this checkup is not just to fix immediate financial issues but to foster habits that ensure long-term financial health and prosperity.