Conducting a mid-year review gives you the time and space necessary to evaluate your progress towards your financial goals.

Review the year so far – the good, the bad and the ugly and then set your goals and create your plan for the rest of the year. This will help you get more focused and clear on what you need to do, so you can have the best year ever.

Without taking the time out to reflect, how do you know whether your decisions, behaviour and actions for the first 6 months have helped you move towards where you want to go in your life?

What people don’t realize is that doing a mid-year financial check-up can help you achieve your money goals before the end of the year, as well as ensure that you are financially on track so you can avoid any unpleasant surprises. Here are some things that should be on your checklist.

1. Review your financial goals

It’s time to check whether the goal you set in January to save at least Rp 25,000,000 for emergencies can still be achieved, or you have to change it to something more realistic and achievable. If you are spending more money than expected, you can exert more effort to spend less and save more for the rest of the year. If you’re spending less, you can put more money to your savings and find other profitable ways you can invest all that extra money.

2. Check your investment portfolio

This is also the perfect time to check on your investments. Check on the mix of investments in your portfolio, and study the effects of the performance of the financial markets on them. They may have changed significantly over the past few months without your knowledge. If so, ask yourself if your current mix is still applicable for the amount of risk that you’re willing to take, your financial and personal circumstances, and your plans for the future. More importantly, check whether the investment returns are still able to meet your financial goals.

3. Cut down on unnecessary expenses

As you perform an audit of your expenses for the last six months, you will see all the things that you spent your money on that you now wish you didn’t. You’ll find that you spent almost Rp 200,000 on a movie streaming site which you didn’t even use because you were too busy with work. You’ll also see that you spent too much money on takeout and clothes since January. If they’re things that you can live without, you can trim down your expenses further by cancelling your subscriptions to services you don’t use a lot or cutting down on shopping when you still have a closet full of good clothes.

4. Review Your Protection

It’s wise to evaluate your insurance needs annually to make sure you have the right amount and type of insurance to cover unforeseen circumstances that can derail your finances. Life insurance may be a good place to start. If your family is growing, you might want to increase the amount of your life insurance to protect your loved ones. Life insurance is mainly designed to replace lost income. As you get older, there are fewer years of income in the future, so the amount of income to replace decreases.

You might also benefit from looking into long-term care insurance, which may offer a variety of features and options.  Don’t forget disability insurance as well. You may be covered at work. But it’s a good idea to make sure you’re adequately covered just in case anything prevents you from working and earning a paycheck for an extended period of time.  Check your insurance beneficiary designations. It’s easy to do, but it could have a huge negative impact if it’s neglected. For example, if you forget to change the beneficiary after a big life event like a married, insurance proceeds could go to the wrong person if anything were to happen to you.

5. Increase your emergency funds

This is also the best time to check whether your emergency fund is adequate. This is to prevent you from charging everything to your credit cards when something unexpected happens.  Your emergency fund should be enough to cover your regular expenses for a few months, and then some. Make sure that you have enough savings that will keep you or your family afloat and cover both minor and major expenses.