Welcome back to the Monthly Money Makeover series! If you’re joining us for the first time, welcome! Each month, we focus on different aspects of our finances to help us all achieve better financial health. This July, we’re focusing on a Mid-Year Financial Review. It’s the perfect time to pause, reflect, and make sure we’re on track to meet our financial goals for the year.
Why a Mid-Year Financial Review is Important
Doing a mid-year financial review is imperative for staying on top of your financial health. It allows you to evaluate your progress, make necessary adjustments, and set yourself up for a strong finish to the year. By taking the time to review and readjust, you can correct any financial missteps before they become bigger issues. This proactive approach helps make sure that you’re making the most of your money and working towards your goals effectively.
Mid-Year Goals Progress Review
Start by reviewing the goals you set in January. Have you made the progress you hoped for? If not, identify the barriers that may have held you back and adjust your goals accordingly. These barriers could be unexpected expenses, changes in income, shifts in personal priorities, or unforeseen life events such as medical emergencies or job changes. Prioritize your goals and create an action plan with monthly milestones.
Breaking down big goals into smaller tasks makes them more manageable and helps you stay motivated. Reflect on any personal changes that might affect your goals and make necessary adjustments to stay on track.
Budget & Expenses
Next, take a close look at your budget and expenses from the past six months. Compare your actual spending to your budget and identify areas where you overspent. Adjust your budget to reflect any changes in your income or expenses. Reallocating funds to priority goals can help you stay focused on what’s most important. For example, if you notice that you’ve been spending more money on dining out, you may want to re-allocate that money towards your emergency fund or debt repayment plan.
Plan for upcoming expenses and cut unnecessary costs to increase your savings budget. Reviewing and adjusting your emergency fund and setting a budget for big purchases can also help you manage your finances more effectively.
Income & Savings
Review all your income sources and compare your current income to what you anticipated at the beginning of the year. Explore ways to increase your income, such as 5-9 jobs or freelance opportunities. One of the easiest ways to increase your income is through your main job. Think about any upcoming opportunities for the rest of the year— or there are chances to secure a bonus or work overtime? Assess the profitability of any side jobs you have and make adjustments if necessary.
Review your savings accounts to make sure you’re on track with your savings goals. Automating your savings contributions and reallocating to higher-yield savings options can help you reach your goals faster. Plan for large upcoming expenses and celebrate your savings milestones to stay motivated.
Debt & Investments
Take inventory of your current debts and review the interest rates and terms. Track your debt repayment progress and prioritize paying off high-interest debts first. Explore refinancing options to lower your interest rates and consider consolidating debts if it makes financial sense. Set a target date for becoming debt-free and create a plan to achieve it.
For instance, you might focus on paying off a high interest credit card by the end of the year by redirecting extra funds to it. Review your investment portfolio and rebalance if necessary to align with your financial goals. Adjust your investment strategy as needed to optimize your returns.
Free Resources
To help you with your mid-year financial review, National Debt Relief (NDR) offers a free, no-obligation consultation with a debt specialist. This can be a valuable resource for managing and reducing your debt. Additionally, join my newsletter for weekly financial tips to stay informed and motivated throughout the year. These resources can provide you with the guidance and support needed to make informed financial decisions and stay on track towards your goals.
Conducting a mid year financial review is a very important step towards achieving your financial goals that you set in January. By taking the time to evaluate your progress, adjust your plans, and make informed decisions based on your current financial needs, you can set yourself up for a successful second half of the year. Keep in mind that the key to financial well-being is regular assessment and flexibility.
By taking these steps now, you can make sure that you’re on the right track to meet your financial goals and finish the year strong. Let’s make the most of the next six months together!
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