Reviewing Mid-Year Progress and Adjusting Strategies

With the year going past the halfway mark, it’s an ideal time to evaluate the trajectory of your financial objectives. Are you on track with your goals? Do you need to recalibrate your scale? The best time to start is during the summer months.

Summer comes with heightened spending activities, from traveling to adventure chasing in the outdoors. It’s the perfect time to manage your finances. The relaxed atmosphere and warm sunny weather can provide the mental space to delve into financial planning and research investment options.

Reassessing your financial goals during this time allows you to:

• Break the monotony of current spending, saving, and investment habits
• Ascertain the efficacy of the existing financial plan
• Maximize the potential of the remaining months

Here is a practical way to evaluate your financial goals and objectives.

Reflect on Your Mid-Year Progress

What is your current financial situation? How skewed or aligned is it to this year’s primary objectives? Review your income, expenses, savings, and debt to understand your financial standing and establish the areas needing improvement.

Note your highest and regular spending and categorize them as needs and wants. Consider inflation’s impact on your purchasing power.

Gauge your saving pattern. Is the designated amount still feasible at the height of the recession? Do you need to adjust the figure to have enough for spending?

Don’t forget your income streams. What are your prospects for supplementary income? How far have you come since the beginning of the year in establishing passive income?

Evaluate Your Financial Goals

Take a closer look at your financial goals at the beginning of the year in light of your current spending, saving, investment, borrowing, and earnings. Determine if they still align with your current priorities and circumstances. Note areas needing adjustments.

Set New Financial Goals

Now that you have established a correlation between your financial objective for this year and your present situation, it’s time to set specific and achievable goals. Ensure your objectives are specific, measurable, attainable, relevant, and time-bound (SMART).

Set timelines for each objective and define the deliverables for each designated period. Determine if adjusting the original financial plan will help you attain your goals or if you need a new plan altogether. 

Adjust Your Strategies

Identify any adjustments needed to create financial strategies to reach your new goals. You may require to:

• Increasing your savings rate.
• Cut back on unnecessary expenses by adjusting your budget and channeling the funds toward your goals.
• Explore new investment opportunities and diversify your portfolio.
• Review your insurance policies, like health, life, and property, to ensure they protect you and your assets.
• Set up a plan for paying off debt.
• Set an emergency fund to cover unexpected expenses or financial hardships.

Creating an Action Plan

Break Down New Goals into Smaller Milestones

An action plan keeps you proactive toward your financial goal. Ensure each goal has smaller, practical milestones. Each step motivates you toward accomplishing your primary objective. Define each step needed to achieve each goal.

Keep Your Action Plan Practical

For instance, for your monthly savings, divide the amount for each week. Ensure you add money to your account weekly to achieve the monthly objective. For your food expenditure, have a meal plan. List your ingredient, including the cost for each food item and purchase frequency.

Have Timelines for Each Milestone

Ensure you can achieve each milestone within the designated period. Be realistic in your estimation and milestone definition.

Seek Support and Accountability

If you’re uncertain about certain financial matters or need expert guidance, consider consulting a financial planner from Barnum Financial Group.

You can also use digital resources like financial apps and online communities for guidance and motivation. Barnum Financial Group is one online resource offering financial planning and wealth management to anyone looking to grow and control their finances.

Track Your Progress and Celebrate Milestones

Remain proactive in reviewing and reassessing the financial plan regularly. Acknowledge and celebrate milestones along the way to keep you motivated.