How to Evaluate and Boost Your Savings Rate This Summer
What Is a Savings Rate?
Your savings rate is the percentage of your income you set aside for future goals. That could be for:
· An emergency fund
· Retirement accounts (like a 401(k) or IRA)
· Vacation or home upgrades
· A down payment fund
Why Review It Mid-Year?
Many people set savings goals in January and forget them by summer. By checking in now, you have enough time left in the year to make meaningful adjustments.
Key Benchmarks to Consider:
· Emergency Fund: 3–6 months of living expenses
· Retirement Savings: 10–15% of your income (at minimum, enough to get your full employer match)
· Other Savings Goals: Whatever aligns with your plans for the year
How to Boost Your Rate:
· Automate your savings so a set amount moves from your paycheck to savings before you can spend it.
· Increase your 401(k) contribution by 1–2%.
· Set up a separate account for specific goals like holiday shopping or travel.
Pro Tip: Even small increases add up. A 1% bump in your savings rate today can translate to hundreds — even thousands — over time.
7/2/25
📑 Why a Mid-Year Tax Withholding Check Is a Smart Financial Move
As we hit the halfway mark of the year, it’s easy to get caught up in summer plans and forget about the financial housekeeping that can save you stress later. One crucial task to tackle right now? Reviewing your tax withholding.
Why Does Tax Withholding Matter?
Your tax withholding is the amount your employer takes out of your paycheck for federal (and sometimes state) taxes. If too little is withheld, you might owe a hefty bill come tax season. If too much is withheld, you’re essentially giving the government an interest-free loan.
Who Should Check Their Withholding?
Life changes affect your taxes. Check your withholding if you’ve:
- Changed jobs
- Gotten married or divorced
- Welcomed a child
- Taken on a second job or side hustle
- Received a big raise or bonus
- Bought or sold a home
How to Review and Adjust It
Use the IRS Tax Withholding Estimator to get an accurate picture of whether you’re on track. If adjustments are needed, complete a new W-4 form with your employer.
The Payoff
A small tweak now can prevent an unpleasant tax surprise or free up extra money in your paycheck to boost savings, pay down debt, or fund a family trip.
Pro Tip:
Set a reminder to do this every July — it’s a good mid-year habit that pairs well with your financial check-in.
