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Get ready for the end of Q2 with these 5 key financial check-in tips to review your budget, savings, investments, and more this May.
As May wraps up and the second quarter of the year nears its end, it’s the ideal time to conduct a thorough financial check-in. Many people focus heavily on financial planning at the start of the year and then again when tax season rolls around—but stopping midway through the year to assess your financial health can make a huge difference.
Whether you manage your personal finances, run a small business, or juggle freelance income streams, this mid-year review lets you catch problems early, adjust your strategies, and set yourself up for a stronger finish in Q3 and Q4. Ignoring this step can mean missed opportunities, surprises during tax time, or falling short on your financial goals.
This blog breaks down five crucial things to review before Q2 ends, with practical advice and resources to help you take control of your money and keep your financial plans on track.
Tracking your year-to-date (YTD) income and expenses is the cornerstone of any financial check-in. You can’t improve what you don’t measure, and understanding your cash flow patterns is essential to effective budgeting and tax planning.
When you review your income and expenses so far this year, you can:
By doing this review, you can identify where to cut back or find new revenue sources, keeping your finances healthy going forward.
One of the biggest financial pitfalls people encounter is incorrect tax withholdings or failing to make accurate estimated tax payments. May is an excellent month to check your tax standing before Q2 estimated payments are due (typically June 15).
If you’re self-employed, a freelancer, or a business owner, estimated taxes are your responsibility and must be paid quarterly.
If you work for an employer, your withholding amounts might need adjustment.
Underpaying can trigger penalties, while overpaying means you lose potential cash flow throughout the year. Accurate tax payments help avoid stress and cash crunches during tax season.
Financial goals are living targets, not set-it-and-forget-it items. As the year progresses, your priorities, income, and expenses evolve, and your goals should, too.
If you’re off track, tweak your budget by:
Make your goals:
Example: Instead of "Save more," say, "Save $1,500 by December 31 by putting aside $125 monthly."
Market volatility, changes in your income, or shifts in life circumstances may require you to adjust your retirement and investment strategies.
If your portfolio is too risky or too conservative, rebalance your assets. Rebalancing keeps your investments aligned with your goals and reduces risk.
Contribute to tax-advantaged accounts like Roth IRAs, HSAs, or 529 plans if applicable. These can provide tax savings and help you reach goals faster.
Good cash flow management means your income reliably covers your expenses, leaving room for savings and unexpected costs.
Sarah is a freelance graphic designer who started 2025 with big plans: growing her client base, saving for a down payment on a home, and paying off some credit card debt. Like many freelancers, her income fluctuates month to month, and she wasn’t always consistent about tracking expenses or estimated tax payments.
By late May, Sarah realized she was feeling stressed about money and unsure if she was saving enough or setting aside enough for taxes. She decided to do a thorough mid-year financial check-in before Q2 ended.
Sarah pulled her bank statements and invoices and used accounting software to generate a report. She discovered she had underestimated how much she was spending on software subscriptions and dining out. Additionally, her income had been less steady than expected in Q1.
Using the IRS Estimated Tax Payment Calculator, Sarah estimated her tax liability for the year and realized she hadn’t paid enough in quarterly taxes. She made a catch-up payment to avoid penalties and set reminders for upcoming deadlines.
Sarah reviewed her goal to save $10,000 for a home down payment by year-end. After adjusting for her fluctuating income and expenses, she set a new monthly savings target and decided to temporarily pause non-essential spending like dining out.
She checked her IRA contributions and realized she could increase her monthly deposit to take advantage of tax benefits and boost retirement savings. She also adjusted her portfolio to be a bit more conservative after reading about market volatility.
Sarah realized her emergency fund only covered about one month of expenses, so she prioritized building it up to three months’ worth by automating monthly transfers to a high-yield savings account.
By the end of June, Sarah had a clear financial picture, adjusted her spending, and felt more confident about her finances. This mid-year check-in helped her avoid a large tax bill in April 2026, reduce stress, and stay focused on her homeownership goal.
After this check-in, start thinking ahead:
A May financial check-in isn’t just about numbers; it’s about gaining clarity and control. This proactive step helps you avoid surprises, maximize tax savings, and make progress toward your financial dreams. Whether it’s adjusting your budget, recalculating tax payments, or reviewing your investment portfolio, these five areas will keep your finances healthy and aligned.
If you want help navigating your mid-year financial review or planning for the rest of 2025, contact us at Vincere Tax. Our experts provide personalized advice tailored to your unique financial situation.
A mid-year financial check-in helps you evaluate your progress toward your financial goals, catch any issues early, adjust your budget or tax withholdings, and prepare for the rest of the year. It ensures you stay on track and avoid surprises during tax season.
To calculate estimated taxes, review your year-to-date income and expenses to estimate your total annual profit. Then use IRS resources like the Estimated Tax for Individuals (Form 1040-ES) to figure out your quarterly payments.
Check if your asset allocation matches your risk tolerance and retirement timeline, ensure you’re contributing enough to maximize employer matches, and review fees. Rebalance your portfolio if necessary to maintain your desired risk level.
Financial experts typically recommend saving 3 to 6 months’ worth of essential living expenses in an easily accessible account to cover unexpected emergencies like job loss or medical bills.
If you’ve had major life changes (marriage, new job, extra income), noticed a large tax refund or tax bill last year, or your income has changed significantly, it’s a good idea to review and possibly adjust your tax withholdings using the IRS Tax Withholding Estimator.
Being audited is comparable to being struck by lightning. You don't want to practice pole vaulting in a thunderstorm just because it's unlikely. Making sure your books are accurate and your taxes are filed on time is one of the best ways to keep your head down during tax season. Check out Vincere's take on tax season!
This post is just for informational purposes and is not meant to be legal, business, or tax advice. Regarding the matters discussed in this post, each individual should consult his or her own attorney, business advisor, or tax advisor. Vincere accepts no responsibility for actions taken in reliance on the information contained in this document.
For business tax planning articles, our tax resources provides valuable insights into how you can reduce your tax liability now, and in the future.
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