Are you on track with your 2026 financial goals? As we head towards summer, now’s a good time to take a moment to reflect on your aims for this year. Carrying out a mid-year financial review can help you assess whether you’re saving enough or if there are opportunities to maximise your cash. Use our checklist below to see if you’re using your money wisely.
1. Check your monthly budget
Planning your spending might seem tedious, but it’s a useful way to keep track of your income and outgoings. With recent cost-of-living rises, especially in energy, food and fuel, even middle to high earners are feeling the pinch. Get a clear understanding of where your money is going and if you can pay off any debts. Divide your budget into mandatory (food, mortgage, utilities) and discretionary expenses (entertainment, eating out, memberships).
2. Audit your subscriptions
If you’ve reviewed your bank and credit card statements, then you might come across direct debits or standing orders for old membership subscriptions. Even a small sum each month can add up in the long run, so make sure you cancel anything you’re no longer using. You could consider moving this same sum into a savings account.
3. Assess your savings
Generally, the earlier in the financial year you start saving, the more interest you can accumulate. If you have a large pot of money sitting in a low-interest bank account, then take advantage of accounts that offer higher interest rates. From fixed-rate accounts to ISAs, there are different ways to save that could enable you to grow your money. ISAs have a tax-free wrapper, allowing you to save up to £20,000 across different types during the tax year.
4. Check your emergency fund
A key part of your saving strategy is to ensure you have always allocated enough money for a separate emergency fund. You could consider keeping this in a high-interest account, but you will need to understand whether there are any penalties for early withdrawal. If you need to make urgent repairs, for example, then you might need fast access to this money.
5. Plan for holidays or large spends
The summer holidays can be expensive, so this is an ideal time to check your spending habits. Live music events, outings and minibreaks can also add up, so you might need to adjust your financial plan to allow for some extra expenses. Summer is also a popular time for carrying out major home repairs, so make sure you have enough funds for large expenses.
6. Review your investments
A mid-year review and rebalancing of your investments can be useful if your risk tolerance or strategy has changed. If you have an old portfolio, then consider diversification across a greater number of assets. However, it’s important not to make any hasty decisions. Investments will always rise and fall, so a long-term approach to investing is always advised.
7. Check insurance policies
Many people take out insurance without reviewing or updating the policy for many years. If your circumstances have changed – for example, you’ve got married, divorced or had a baby – then check that you have adequate cover. From income protection and critical illness policies to life cover, there are various ways to protect your earnings and your family.
8. Identify tax savings
Being tax-efficient could help you save more money in the long run. Higher-rate and additional-rate taxpayers may benefit from tax relief by increasing their pension contributions. If you run a limited company, you can reduce Corporation Tax with tax-deductible benefits such as certain insurance policies, group pensions and charitable donations. If you’re self-employed, make sure you’re claiming for the full costs of running your business.
9. Refresh your estate plan
Over the past year, there have been significant legislative changes that may affect your inheritance planning. With the inclusion of unused pensions in taxable estate values from April 2027, what worked before might not work in the future. Sensible estate planning provides a strong foundation for your financial plan. For more guidance, see our blog Why traditional estate planning may no longer be enough.
10. Update your financial plan
A mid-year financial review gives you the chance to take stock of where you are with your finances halfway through the calendar year. It’s also an opportunity to check your financial plan is up to date and fully aligned to your goals. By adjusting your plan now, you might make beneficial changes to maximise your pensions, savings and investment strategies.
Your Chartered Financial Planners
Balance: Wealth Planning provides independent financial planning advice. As a Chartered Financial Planning company, we’re proud to be among the top 15% of financial advice companies in the UK with this gold-standard status.
Our financial planners will help you build a sensible financial plan based on a solid strategy that’s fully aligned to your goals. We’ll also help you minimise tax and protect your wealth.
Get in touch with our team to book your mid-year financial planning review.
Sources:
https://www.morganstanley.com/articles/mid-year-financial-planning-checklist
