This mid-year money checkup could save you thousands

You could be making a simple retirement mistake that is costing you thousands of dollars a year.

That is just one reason financial experts say now is the time for a mid-year money reset. With the calendar halfway through the year, wealth experts say this is the moment to take a closer look at your finances.

In a recent appearance on the In Your Corner podcast, Mical Jeanlys-White, the founder of Wealthmore and host of All the Wealth podcast, said you do not need hours to get back on track. A simple 10-minute check-in can make a meaningful difference.

Review recent spending

Start by looking at the last one to two months. Focus on where your money is going and identify areas to cut back, she said.

That could include takeout, subscriptions or other nonessential expenses.

Even small changes can add up quickly.

Tackle high-interest debt

If you are carrying credit card balances, look at your interest rates. Jeanlys-White says many people do not realize they can negotiate.

You can call your credit card company and ask for a lower rate. According to LendingTree, four in five people who ask get some form of reduction.

Lowering your rate can save money immediately if you are carrying a balance.

Check your 401(k) and retirement accounts

This is where experts say many people are making a costly mistake.

Some workers are contributing to a 401(k) or IRA, but their money is not actually invested. That's because not all 401(k) plans auto-enroll you into a qualified default investment. For IRAs, cash is the "de facto default" for direct contributions and most rollovers.

In that scenario, the money is essentially sitting idle instead of growing.

"People have enrolled, made a selection, but left it sitting in cash," Jeanlys-White said. "It's not being invested, so it's almost like you're putting it into a savings account."

That can mean missing out on years of potential gains. Research by Vanguard found nearly 30% of individual retirement accounts had gone untouched in cash for seven years, costing investors significant growth over time.

Jeanlys-White said it's also critical to check that you're contributing enough to your 401(k) for the employer match, otherwise you're missing out on "free money."

Why this check-in matters now

A mid-year reset is especially important as inflation, interest rates and everyday expenses continue to shift.

Your financial plan in January may no longer reflect reality, Jeanlys-White said.

Whether your goal is to get ahead or simply stay on track, taking a few minutes now to review your spending, debt and investments can help you avoid bigger problems later.

It can also help you make smarter decisions for the rest of the year.

You can hear the full discussion on the latest episode of the In Your Corner podcast. Each week features a different guest expert. You can find new episodes posted every Wednesday on the CBS Philadelphia YouTube channel.  

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