You’ve made it to the middle of the year, but have your savings goals gone the distance? Take the time to reassess your finances to put you back on track for the next six months. Here’s how to do your mid-year money reset in five simple steps.

We all start off each January with big dreams for the year ahead. And these dreams often come with price tags, such as plane tickets to an exotic island for that much-needed getaway, or a down payment towards a shiny new set of wheels. But, considering that most people – a whopping 80% – give up on their New Year’s resolutions by February and our poor track record, as a nation, when it comes to saving, it’s safe to assume that by the middle of the year, you might be further away from meeting these goals than you’d have hoped. Add to that any lifestyle changes, big or small, that have occurred since the year commenced and things might not be looking as they should.

But fear not! Even if you are behind, a mid-year audit and reset can help you see where to make adjustments so that your financial dreams for 2022 can be realised. It’s not too late! Here are five steps to take to get yourself back on track.

1 Review your action steps
When you came up with your savings goal, a plan would have been put into place to get you there. Have you taken these steps or stuck to the plan? If not, why not? While there’s nothing wrong with aiming high, it might be that your goals are – or the time frame is – unrealistic. This doesn’t mean that you have to give up. It just means looking at where you’re at, whether you are on track, and what steps (and how long) it will take to get there.

2 Take note of changes
Has anything in your life changed since setting your initial aim or goals in January? Whether you got an increase at work, are responsible for monthly instalments or now have a daily coffee buying habit, these factors all need to be taken into account when doing your mid-year audit. You will probably have to reassess your spending and saving needs, or change your goals or timeline altogether to avoid disappointment. Life is unpredictable like that!

3 Consider what isn’t working
Is one aspect of your saving strategy working just fine? Leave it be. But if something makes you uncomfortable, it’s important that you examine and address it. If you are worried about the prospect of a large unplanned expense or the economy and the state of your investments, you might need to make adjustments. Do this by ensuring that your investment portfolio is aligned with your time frame and risk tolerance, and that your mandatory expenses and savings goals are factored in.

4 Think about the foreseeable future
Some things we can’t plan for. Others we know or can anticipate are coming. Any upcoming changes that you’re aware of that will have some kind of impact on your finances, such as a promotion, a retrenchment or even a pregnancy, have to be factored in going forward for the next half of the year. It’s also worth reassessing your goals. You may have wanted a girls’ trip in January but now a couple’s trip with a new partner is on the cards. Life happens!

5 Enlist the help of a pro
Feeling overwhelmed by your finances? Don’t stress! Instead, why not get the help of a certified financial adviser? Make sure that yours is ethical and qualified to handle your money by choosing someone who is registered with the Financial Planning Institute of Southern Africa (FPI). Knowing that your adviser has your best interests at heart and will give you sound financial advice to help you reach your money goals will give you peace of mind.

By Helen wallace
Photography: Photo by Kelly Sikkema on Unsplash