Mid-Year Money Makeover
How to Stay on Track with Your Financial Goals
By Dylan Rodrigues
As you transition into the second half of the year, it is crucial to revisit and reassess your financial goals. For many of us, the start of the year represents an opportunity to set out ambitious new year resolutions. Just like the fitness goals we seem to always set out each year, maintaining momentum can be challenging. The middle of the year offers an excellent opportunity to evaluate your financial progress, make necessary adjustments, and ensure you remain on track to achieve your financial objectives. Here is a guide to help you prepare for the remaining months and set yourself up for financial success.
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Review Your Financial Goals
Start by revisiting the financial goals you set at the beginning of the year. Whether your aim was to save more, reduce debt, invest wisely, or increase your income, take stock of your progress and ask yourself the following questions:
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Have I achieved any of my goals?
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Am I halfway there?
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Are my goals realistic?
This self-assessment will give you a clear picture of where you stand and what adjustments are needed.
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Evaluate Your Budget
A thorough review of your budget is essential. Your income and expenses have likely changed since the start of the year. It is important to compare your actual budget with your initial planned budget. Identify any variances and establish why they occurred. Updating your budget will help you allocate funds more effectively for the remainder of the year.
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Revisit Your Investment Plan
Whether you are investing for a specific future goal or approaching retirement soon, it is imperative to make sure you are on track to achieve these goals. Identify whether your current savings habit will help you achieve your desired future goals. Consider setting up monthly debit orders towards your investments at the start of every month. This is one example of a healthy savings habit that can lead to long-term financial success. It is also important to review your investment portfolio to ensure your investments remain aligned with your risk tolerance and financial goals.
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Reduce and Manage Debt
If reducing debt was one of your goals, evaluate your progress and make necessary adjustments where needed. A couple of strategies to consider here would be to focus on high-interest debt first or to accelerate your debt repayments by regularly paying more than the minimum amount due. Another approach that is maybe more effective from an emotional point of view is to settle your smallest debt first and then use this monthly payment towards the next debt. Its very rewarding to cross off a debt and helps to keep momentum.
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Plan for Major Expenses
You may have some significant expenses on the horizon such as holidays, home repairs or the purchase of a new vehicle. Plan for these expenses in advance by setting aside the needed funds in a highly liquid, low-risk savings account or money market. Prioritise which expenses are most important and which of them can be reduced or postponed.
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Review Your Insurance Coverage
Consider when last you had a comprehensive risk plan prepared for you. It is important to determine what your required life, disability, and critical illness cover should be in case you are under or overprotected. It is also worth getting comparative risk quotes on your short-term insurance policies such car insurance. Any savings can then be allocated to your investments or debt repayments.
Conclusion
The second half of the year is a great time to reassess and adjust your financial plans. Consult with your financial advisor to review your progress and refine your strategies. By following this guide, you can ensure that you remain on track to achieve your financial objectives. Remember to stay proactive, disciplined, and flexible to navigate any challenges that may arise, and set yourself up for financial success as the year progresses.
Read more about Ascor® Financial Planning Services
Related Topics
https://ascor.co.za/how-to-conduct-a-mid-year-financial-review/
https://ascor.co.za/staying-on-track-in-a-changing-world-revisiting-your-financial-goals/
https://ascor.co.za/how-to-diversify-your-investment-portfolio-_-a-simple-guide/
https://ascor.co.za/a-long-term-or-short-term-investment-strategy-does-it-really-matter/
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