After setting a new year budget, it’s not uncommon for unexpected scenarios to arise, such as unforeseen expenses, changes in income or added bills. These alterations can range from minor to significant financial impacts. No matter what financial scenarios have occurred, or their severity, conducting a mid-year financial check-up can help get budgets back on track, prepare for additional expenses and lead to economic wellness for the remainder of the year (and beyond).

“I think mid-year is a natural checkpoint that allows both individuals and businesses to assess their progress,” says Jack Biggs, executive vice president of Desert Financial Credit Union. “For those who create financial goals, it still gives plenty of time to make adjustments.”

MORE NEWS: Desert Financial Credit Union dispels mortgage myths and truths

DEEPER DIVE: How Desert Financial is committed to protecting members from financial scams

Summer financial check-up

A lot can change with personal and business finances in six months, positively or negatively. Biggs offers a helpful reminder, “There’s still another six months left.”

“Depending on what it is, maybe you need to rebalance that budget, revisit an investment strategy or prepare for year-end expenses,” he says. “A mid-year review can help ensure future financial decisions remain aligned.”

In addition to evolving priorities that naturally happen throughout the year, market conditions also fluctuate.

“Something could happen that you hadn’t accounted for,” Biggs says. “There are always unexpected things that come our way.”

Common examples of unexpected financial situations and blind spots can include:

  • Vacation overspending
  • Seasonal expenses, “Think school costs, holiday spending and insurance renewals,” Biggs notes.
  • Shift in employment (loss or gain of a job or a change in salary)
  • Household repairs (Like air conditioning issues in the summer)
  • Vehicle expenses

Overspending or underpreparing for unforeseen financial circumstances can be frustrating and, for some, even feel devastating, but fortunately, there are several mid-year strategies to help get back on the healthy budget track.

Getting back on track

One of the best starting points for re-aligning finances is to define what caused the detour(s).

“Start with that self-awareness of what caused the detour,” Biggs says, “Once you identify that, reset your goals based on the situation. Even small changes, automating savings or even cutting off one discretionary expense, can create momentum.”

There are many solutions to mid-year financial hiccups that can be implemented over time, including:

  • Track and tweak spending: Use budgeting tools or apps to monitor expenses.
  • Automate savings: Set up recurring transfers to build savings consistently.
  • Tackle debt with strategy: Focus on high-interest balances first. Explore consolidation options to streamline payments and reduce interest.
  • Check in regularly: Revisit your budget monthly and quarterly to stay on track and adjust for life changes.

Desert Financial mid-year solutions

A mid-year financial appraisal doesn’t have to be done alone.

“At Desert Financial, we try to take a personalized approach to financial well-being,” Biggs says. “We have about 20 financial coaches who sit down with our members and identify gaps, help them set realistic goals and create actionable plans.”

Additionally, members have access to one-on-one consulting, digital tools, educational workshops and webinars.

Desert Financial also recently rolled out a collaboration with financial expert and New York Times Best Selling Author Nicole Lapin. This collaboration promotes financial literacy awareness and will focus on providing education on budgeting, fraud prevention, the credit union difference and more, to help members build confidence and financial well-being across Arizona.

Most importantly, Biggs wants people to understand that a mid-year financial check-up need not be a time of self-condemnation. “Don’t beat yourself up,” he says. “And when you come back, don’t try to boil the ocean, make sure your adjustments are sustainable.”

To learn more, visit Desert Financial Credit Union.