Five Numbers Worth Reviewing in July

Your Midyear Money Check: Five Numbers Worth Reviewing in July

July is a natural time to review your money.

Half of the year has passed, but there is still enough time to make meaningful changes before December.

A midyear financial review does not need to involve a complicated spreadsheet or a complete budget overhaul.

Start with five numbers.

These numbers will tell you more than a vague feeling that you are doing well or falling behind.

The five numbers are:

1. Average monthly spending
2. Emergency savings
3. High-interest debt
4. Retirement contribution rate
5. Recurring monthly subscriptions

This article is for educational purposes and does not replace individualized financial, tax, or investment advice.

Number 1: Average Monthly Spending

The first number to understand is what it actually costs to run your life each month.

Do not rely on what you think you spend.

Review the past three months and calculate the average.

Include:

• Housing
• Utilities
• Transportation
• Insurance
• Groceries
• Dining
• Healthcare
• Debt payments
• Personal spending
• Subscriptions
• Business expenses
• Irregular expenses

Irregular expenses are often what make a budget appear inaccurate.

These may include:

• Vehicle registration
• Annual insurance premiums
• Gifts
• Travel
• Home repairs
• Medical bills
• Professional fees
• Membership renewals

Divide annual or irregular costs by 12 and include a monthly amount in your planning.

Ask These Questions

• Has my spending increased since January?
• Which categories are responsible?
• Was the increase temporary or ongoing?
• Am I spending in alignment with my current priorities?
• Which expense creates the least value?

The goal is not to cut everything.

It is to identify the spending that no longer earns its place.

Number 2: Emergency Savings

How many months of essential expenses could you cover if income stopped?

Start by calculating your essential monthly expenses.

These normally include:

• Housing
• Utilities
• Insurance
• Basic groceries
• Transportation
• Minimum debt payments
• Necessary healthcare

Then divide your available emergency savings by that number.

For example:

If essential expenses equal $4,000 per month and emergency savings equal $12,000, you have approximately three months of coverage.

The right target varies.

Many people aim for three to six months, while households with one income, variable income, health concerns, or near-term retirement may prefer a larger buffer.

Keep Emergency Savings Accessible

Emergency funds should generally be:

• Easy to access
• Separate from daily spending
• Protected from market volatility
• Held somewhere that earns a competitive rate when possible

Do not chase a higher return if it makes emergency money difficult to access or exposes it to unnecessary loss.

Number 3: High-Interest Debt

List each debt with:

• Current balance
• Interest rate
• Minimum payment
• Remaining term

The interest rate matters because it tells you how expensive the debt is.

Prioritize understanding:

• Credit cards
• Personal loans
• Buy-now-pay-later balances
• High-rate vehicle loans
• Variable-rate debt

Two common payoff strategies are:

Debt Avalanche

Pay extra toward the highest-interest debt first.

This usually saves more money mathematically.

Debt Snowball

Pay extra toward the smallest balance first.

This may create faster psychological wins.

The best strategy is the one you will follow consistently.

Do not pay extra toward low-rate debt while continuing to carry expensive revolving debt without first comparing the impact.

Number 4: Retirement Contribution Rate

Review how much of your income is currently going toward retirement.

Check:

• Your employee contribution
• Employer matching contributions
• Whether the full match is being captured
• Whether contributions are traditional, Roth, or a combination
• Current account beneficiaries
• Investment allocation
• Contribution limits that apply to your age

Employer matching is part of your compensation.

Not contributing enough to receive the full available match may mean leaving compensation unused.

But contribution decisions must also account for:

• Current cash flow
• Emergency savings
• Debt
• Near-term needs
• Tax considerations
• Retirement timeline

Increasing the percentage is valuable only when the rest of the financial plan can support it.

Number 5: Recurring Subscriptions

List every automatic monthly and annual charge.

Include:

• Streaming
• Cloud storage
• Software
• Fitness apps
• Website tools
• Online memberships
• News services
• Delivery memberships
• Business platforms

Annual subscriptions are easy to miss because they do not appear every month.

Divide annual fees by 12 to understand the real monthly cost.

Use the Resubscribe Test

Ask:

Would I subscribe to this today at the current price?

If the answer is no, cancel it.

Do not keep paying because you might use it eventually.

Three Additional Numbers Worth Checking

Your Savings Rate

Calculate the percentage of take-home pay or gross income that goes toward savings and investments.

Use one method consistently so you can track progress.

Your Credit Utilization

If you use credit cards, compare each balance with its credit limit.

High utilization can affect credit scores even when payments are made on time.

Your Net Worth

Add:

• Cash
• Investments
• Retirement accounts
• Property value
• Other meaningful assets

Subtract:

• Mortgage
• Loans
• Credit cards
• Other debt

Net worth will fluctuate, but tracking it once or twice a year can reveal whether your overall financial position is improving.

Review the Second Half of the Year

After calculating the numbers, choose no more than three priorities.

Examples include:

• Build one additional month of emergency savings.
• Eliminate one high-interest balance.
• Increase retirement contributions by one percentage point.
• Cancel five unused subscriptions.
• Create a sinking fund for annual expenses.
• Update account beneficiaries.
• Meet with a qualified financial professional.

Trying to improve everything at once usually leads to poor follow-through.

A Simple July Money Meeting

Set aside 30 to 45 minutes.

Bring:

• Recent bank statements
• Credit card statements
• Debt balances
• Retirement account information
• Subscription records
• A calculator or spreadsheet

Then complete these steps:

1. Calculate average monthly spending.
2. Calculate emergency-fund coverage.
3. List debt by interest rate.
4. Confirm your retirement contribution rate.
5. Total recurring subscriptions.
6. Choose three second-half priorities.

If you manage money with a spouse or partner, review the numbers together.

The goal is not blame.

The goal is shared clarity.

What Not to Do

Do not respond to the review by making dramatic cuts you cannot sustain.

Do not move emergency savings into risky investments because cash feels unproductive.

Do not increase retirement contributions so aggressively that you return to credit cards for ordinary expenses.

Do not assume a subscription is harmless because it costs only a few dollars.

Do not ignore the numbers because they are uncomfortable.

Clarity gives you options.

Avoidance removes them.

Your Midyear Financial Goal

By the end of July, you should be able to answer:

• What does an average month cost?
• How long could emergency savings support essential expenses?
• Which debt is most expensive?
• Am I capturing the retirement match available to me?
• How much am I paying for recurring services?

You do not need to solve every financial issue this month.

You need to know where you stand and decide what matters most next.

A midyear money review is not about judging January through June.

It is about using what you now know to make July through December stronger.

Disclaimer:
This content is for informational purposes only and is not medical advice. Always consult your healthcare provider before making changes to your diet, supplements, or lifestyle, especially if you have existing conditions or take medication.

💌Want plant-based tips each week

Join the Plant Based Flex newsletter. It’s free, and when you confirm your email I’ll send you a 7-Day Kickstart Wellness Bundle to help you thrive beyond 60.

👉 Join the newsletter!