Mid-Year Money Check: Is Your Cash Flow Aligned with Your Goals?
As we reach the halfway point of the year, June is an ideal time to pause and reassess your financial picture. Life moves fast—especially in military households—and it’s easy for your spending, saving, and goals to drift off course without regular check-ins. A mid-year review is your opportunity to make small adjustments now that can have a meaningful impact by year’s end.
Why a Mid-Year Financial Review Matters
Waiting until December to evaluate your finances often limits your options. Whether you're saving for a major purchase, preparing for a PCS, or working toward long-term goals, mid-year is a natural checkpoint. Think of it as a financial “course correction” to ensure you’re still on track with your plan.
Step 1: Revisit the Goals You Set in January
Take a moment to reflect on the goals you set earlier this year. Were you planning for a home purchase, a relocation, a special trip, or simply building your emergency fund? Are those goals still relevant?
Circumstances change—especially in military life—so this is also a good time to clarify new priorities. Rewriting or updating your financial goals helps you stay focused and intentional as the year continues.
Step 2: Review Your Cash Flow
Understanding where your money is going is foundational to making sound financial decisions. Many people are clear on their income, but less so on their expenses. A helpful framework is the 50/30/20 rule:
50% of income goes toward essential living expenses (housing, utilities, groceries, insurance, debt payments).
30% is allocated for discretionary spending (dining out, entertainment, hobbies).
20% is reserved for savings and financial goals (TSP contributions, emergency fund, down payments).
This rule isn’t rigid, but it provides a useful benchmark for evaluating whether your current spending habits align with your long-term objectives.
For those where generosity is a priority, I modify this framework to be the 50/20/20/10 rule:
50% of income goes toward essential living expenses (housing, utilities, groceries, insurance, debt payments).
20% is allocated for discretionary spending (dining out, entertainment, hobbies).
20% is reserved for savings and financial goals (TSP contributions, emergency fund, down payments).
10% goes to generous giving.
Again, this is not a rule of law, but a simple framework to grant permission to all areas of your life, without moving to excess in any one area of your life.
Step 3: Account for Surprises
Have any unexpected expenses or income changes popped up in the past few months? A tax bill, emergency home repair, or a deployment-related expense can significantly impact your financial plan. On the flip side, perhaps you received a bonus or other unexpected income. Now is the time to factor those in and adjust accordingly.
Step 4: Track Your Progress on Savings and Debt
Check in on the progress you've made toward paying down debt or increasing your savings. If you're working toward paying off loans or credit cards, are your balances moving in a positive direction?
If your savings rate isn’t quite where you’d like it to be, consider whether there are opportunities to automate contributions—whether to a TSP, IRA, or other savings vehicle. Automating even small amounts can make it easier to stay consistent over time.
Step 5: Evaluate Discretionary Spending
Recurring expenses like streaming subscriptions, app memberships, or other small charges can quietly add up. Reviewing these line items gives you the opportunity to cancel what you no longer use and reallocate those funds to more meaningful goals.
Step 6: Reconnect with Your “Why”
Every sound financial plan starts with a purpose. Whether your top priority is stability, flexibility, generosity, or building wealth, your spending should reflect your values. If your recent financial activity isn’t aligned with what matters most to you, this is a chance to course correct—with clarity and intention.
Final Thoughts
Summer often brings a shift in pace, which makes it a great time to revisit your financial strategy. With kids out of school and routines changing, use this window to evaluate where you stand, make any necessary changes, and move into the second half of the year with confidence.