Mid-Year Review: Five Financial Metrics To Evaluate
As the year reaches its midpoint, June is a great time to reflect on your financial progress.
Whether your goals include building savings, paying off debt, and/or preparing for retirement - evaluating key financial metrics this month gives you the opportunity to make strategic changes to complete a strong year. Here are five essential financial indicators to assess this month and how to act on what you find.
1. Net Worth
Your net worth provides a clear snapshot of your overall financial health. It's calculated by subtracting your total liabilities (debts) from your total assets (cash, investments, real estate, etc.).
Why it matters in June: Reviewing net worth mid-year helps you evaluate growth of wealth over time. If it’s stagnant or declining, it may signal overspending, increased debt, and/or underperforming investments.
Action step: List all assets and liabilities using a spreadsheet or financial planning software, like eMoney. Compare with your end of December figures to track progress and use this insight to adjust the following items.
2. Savings Rate
Your savings rate is the percentage of your income that you're saving — including contributions to retirement accounts, HSAs, 529s, emergency funds, brokerage accounts, etc.
Why it matters now: If you’re not close to 50% of your annual savings target, consider increasing contributions to accounts where funds are accessible this year without penalty. This usually means taxable accounts and not 401k or 529 plans, because if a shortfall is created, you’ll need ease of access to funds to cover.
How to calculate: Divide your total savings to date by your gross income (pre-tax) for the same period. A 15% savings rate is a solid target, but if you wish to be above-average there are only two ways - save more and/or invest beyond median returns of the population.
3. Monthly Cash Flow
Cash flow reflects your day-to-day financial reality by measuring the difference between your monthly income and expenses. Positive cash flow means you’re living a sustainable lifestyle and have money left to save and invest.
How to check: Track all income and expenses for the past one or two months. Subtract total expenses from total income. If you're consistently negative, you need to trim spending, increase income, or both.
Action step: Use budgeting apps or spreadsheets to monitor cash flow. Small leaks — like unused subscriptions, frequent takeout, impulse purchases — can erode your financial health over time.
4. Emergency Fund Coverage
An emergency fund should cover 3-6 months of essential living expenses to defend against financial surprises.
Why June matters: If you’ve had unexpected costs this year, your emergency fund may be lower than it should be. Summer travel and seasonal expenses can also drain savings if you’re not careful.
Action step: Calculate the last 3 months of essential expenses, compare to your current cash balance, and plan to replenish if needed.
5. Investment Portfolio Allocation
June is a great time to check investment returns and asset allocation. Market changes or personal milestones (like a job change, large purchase or desired earlier retirement) may require a strategy shift.
Why it matters: If your portfolio has drifted from your target allocation (e.g., too much in stocks, not enough in bonds or real assets), it can affect risk exposure, volatility and long-term results.
Action step: After confirming monthly cash flows and emergency funds are aligned and no additional funds need to be raised, review your portfolio allocation and rebalance accordingly.
Final Thoughts
A mid-year financial check-up gives you clarity, control, and the chance to recalibrate while sitting outside with your laptop sipping morning coffee or lazing on a sunny afternoon in the summertime.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Glenn Brown is a Holliston resident and owner of PlanDynamic, LLC, www.PlanDynamic.com. Glenn is a fee-only Certified Financial Planner™ helping motivated people take control of their planning and investing, so they can balance kids, aging parents and financial independence.
The original article appeared in the June editions of Local Town Pages for Holliston, Natick, Ashland, Franklin, Hopedale, Medway/Mills, Bellingham, and Norfolk/Wrentham. Additionally in 1st weekly edition of Community Advocate for Shrewsbury, Westborough, Northborough, Southborough, Grafton, Marlborough, and Hudson.
Please call me at (508) 834-7733 or directly schedule a meeting to learn more about considerations for planning and investing so you can balance kids, aging parents, and your financial independence.
PlanDynamic, LLC is a registered investment advisor. This article is intended to provide general information. It is not intended to offer or deliver investment advice in any way. Information regarding investment services is provided solely to gain a better understanding of the subject or the article. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable.
Market data and other cited or linked-to content in this article are based on generally available information and are believed to be reliable. PlanDynamic, LLC does not guarantee the performance of any investment or the accuracy of the information contained in this article. PlanDynamic, LLC will provide all prospective clients with a copy of PlanDynamic, LLC’s Form ADV2A and applicable Form ADV 2Bs. You may obtain a copy of these disclosures on the SEC website at http://adviserinfo.sec.gov or you may Contact Us to request a free copy via .pdf or hardcopy.